THUNDER BAY -- Ontario's Ministry of Finance confirmed it's looking into changing the way municipalities can tax railroad land use.
Although a ministry spokesman said it was too early to speculate on what the outcome might be, he did say inter-jurisdictional research was underway and that Ontario is engaging both municipalities and "members of the railway community."
The Northwestern Ontario Municipal Association brought the matter to the Association of Municipalities of Ontario in Niagara Falls last weekend, arguing municipalities in other jurisdictions are able to obtain for access to right of way lands.
"Ontario needs to overhaul its taxation structure when it comes to railroad right of way lands," said NOMA president Dave Canfield in a release.
"Not only would this provide municipalities with an opportunity to increase its tax base, it would also benefit the provincial treasury by increasing revenue for access to right of way lands located within unincorporated territories."
NOMA argued Manitoba, Saskatchewan and Alberta tax railroad companies per ton, per mile and Ontario ought to consider the revenue opportunities of following suit.
Thunder Bay officials have not responded to media requests but the matter impacts many communities throughout Nothwestern Ontario.
Although CP Rail is the only industry and largest employer in Schreiber, it pays only $10,000 to $15,000 in taxes where some residents are paying as much as $7,000.
The issue is particularly critical to municipalities in the Rainy River District. Fort Frances Coun. Ken Perry has claimed his town receives the lowest revenue per mile in the province.
