The No. 1 employer in Castlegar, B.C., says it decided to start paying its municipal taxes again because the city is making a genuine effort to resolve a tax standoff. The Zellstoff Celgar pulp mill is one of two pulp mills that refused to pay taxes earlier this year, claiming the tax rate was too high considering the bad economy. The move left several South Coast municipalities wondering how they would cover their bills, including Castlegar, which relies on Celgar's taxes for almost half of the city's total budget. The company has now decided to make an immediate payment of about $470,000 and then monthly payments against its outstanding tax balance of $2.7 million. Managing director Al Hitzroth said an improved dialogue with city officials helped break the deadlock. He also said that Celgar was looking for a 50 per cent tax reduction, worth about $2 million to the city, but it was looking at rates in other jurisdictions before setting a new figure. Although Celgar has decided to start paying up, Hitzroth said, the overall issue of industrial taxes in B.C. must be taken to the provincial level.
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