2 business owners in small northern Ontario town say they refuse to pay a 20% tax hike

Two business owners in the small northern Ontario town of Fauquier-Strickland say they refuse to pay a 20 per cent property tax hike the municipal council approved last month.

On Sept. 9, Fauquier-Strickland councillors voted in favour of the tax increase as the community of around 500 people faces a financial crisis.

In early July, Mayor Madeleine Tremblay revealed the municipality had a $2.5-million operating deficit and would face a  service shutdown without financial relief from the province or a significant tax increase of up to 230 per cent.

The Ontario government later stepped in with $300,000 in interim funding.

Even with that financial help from the province, consultant Craig Davidson recommended that property taxes go up by 80 per cent to properly address the operating deficit. But councillors decided that would be too much for ratepayers and local businesses to handle.

The previous year, property taxes had already increased by 26 per cent.

Business owners Yolande Fantham and Paul Lavoie say the latest tax increase isn’t sustainable, and that they will refuse to pay it.

“I’m gonna lose everything if this keeps up. Like I cannot afford taxes,” said Fantham, who owns the Lac Gerard campground, which has 61 tenants.

Fantham said she plans to pay her property taxes at the previous rate, but wants to meet with the municipality to discuss a solution.

Lavoie, who owns the Shackleton campground, which has more than 80 sites, said their businesses have taken on the brunt of the financial burden associated with the tax hike.

In a report on the property tax increase, the municipality noted that 92 per cent of residential properties would see annual taxes go up by less than $500.

Lavoie said that while that is true, his property taxes will go up around $7,000 annually, and Fantham faces a similar increase.

He said it is unfair that both their businesses are taxed at the residential rate, rather than a rate that takes into account the seasonal nature of running a campground.

He said the only municipal services he receives at his property are garbage pickup and snowplowing of roads during the winter. 

“We have our own water and sewer, which we’re paying for,” Lavoie said.

Like Fantham, Lavoie said he wants answers from the municipality and to arrive at a solution that doesn’t include a 20 per cent tax hike.

Both business owners would be charged a monthly interest rate of 1.5 per cent for any unpaid property taxes.

CBC News reached out to the Township of Fauquier-Strickland for comment, but did not receive a response by deadline.