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Catalyst Paper pays tax bill in full to three of four municipalities (July 06, 2010)

One year after several B.C. forest products companies rebelled against their municipal taxes, Catalyst Paper w…

One year after several B.C. forest products companies rebelled against their municipal taxes, Catalyst Paper will pay its full municipal property tax bill in three of the four municipalities that host its B.C. paper mills. It is seeking leave from the Supreme Court of Canada to appeal a recent court decision involving the fourth municipality.
Catalyst announced that it will pay more than $15 million in municipal taxes to Powell River, Campbell River, Port Alberni and the District of North Cowichan.
In light of its continued pursuit of a legal remedy regarding the North Cowichan tax levy, Catalyst will pay $1.5 million to that municipality in addition to all property taxes collected by the municipality on behalf of other governments. A legal appeal has also been filed regarding Campbell River’s regional district rates which, according to Catalyst, ignore last year’s B.C. Supreme Court order setting aside as illegal certain rates applied by the municipality.
Property taxes levied on Catalyst Paper by the B.C. municipalities in which it operates are: North Cowichan, $6.5 million; Port Alberni, $5.2 million; Campbell River, $4.8 million; Powell River, $3.0 million. In contrast, property taxes at Catalyst’s Snowflake, Arizona, mill are C$747,000 in 2010.