Catalyst follows up on promise to pay only a portion of its tax bil

Mike Damour - Cowichan News Leader and Pictorial Published: July 07, 2009 11:00 AM

'North Cowichan is taking a wait-and-see approach to what happens next after Catalyst Paper followed up on its promise to pay only a portion of its annual tax bill. Mark Frame, North Cowichan’s director of finance, confirmed Crofton mill paid less than what the municipality said it owes. “They paid $1.5 million of their ($6.5-million 2009 tax bill) tax bill last week,” he said. “As well, Catalyst paid another $946,900 to pay school taxes, the Cowichan Valley Regional District and all the others.” Catalyst has long argued it pays more than its fair share of taxes — about 44 per cent of all taxes last year — and it needs that extra cash to remain competitive in a gloomy global market. Frame said Catalyst usually hand-delivers its taxes, and did so again last week. “Eight or nine years ago they came with a (four-foot by eight-foot) cheque and they used to send someone down to specially hand it to the mayor,” he said. “Over the last years they’ve hand-delivered (the cheques) but didn’t make a fuss about it.”

As it now stands, Catalyst has been hit by a 10 per cent penalty that stays current until Dec. 31.If the taxes remain unpaid by January, Catalyst will officially be in arrears, and by May the municipality would add 2010 taxes to the overall bill. If Catalyst fails to pony up by September of the third year, the property could go to a tax sale. But Catalyst is challenging the municipality in court. Claiming unfair taxes have helped put them deep in a financial hole, Catalyst petitioned to the Supreme Court of British Columbia last month for a judicial review of property tax rates in North Cowichan, Port Alberni and Campbell River, all places where the pulp-and-paper company has operations. The court has yet to rule on the application.