Iqaluit struggles to make tax-avoiding homeowners pay up

The City of Iqaluit continues to struggle with homeowners who don't pay their property taxes, although its arrears list totals nearly $1.5 million.

There are currently 56 names on the city's arrears list, including 12 businesses, in the city of about 6,200.

Almost 80 per cent of the debt is owed by individual homeowners, with some owing upwards of hundreds of thousands of dollars.

"The numbers are troubling [and] they're troubling for a number of reasons," Coun. Glen Williams told CBC News.

"The majority of landowners and ratepayers in the community pay their taxes. Being one of those taxpayers, you look and it's frustrating when you see a percentage of the homeowners and ratepayers in the community that aren't meeting their commitments to our local tax system."

In 2003, Iqaluit city officials considered going to court and forcing homeowners to sell their houses if they would not pay their property taxes.

They backed off the plan, however, and have since resorted to pleading with ratepayers to make payment arrangements.

"We're hoping that the people who owe the money will be coming out and probably making arrangements with the city, so we can allow them to pay it over a period of time," said John Maberi Modonyi, the city's director of finance.

Williams said he and others are encouraging homeowners to roll their property tax payments in with their mortgage payments, which can then be handled as a monthly payment.

Williams said the city is trying to be sensitive on the issue, but said the situation is serious.

"There's been approaches that have been used in other jurisdictions: of tax sales, of repossession [of] properties and doing those types of things. So we're still searching for a way to try and resolve these," he said.

"We have an obligation as a city to the ratepayers that faithfully and annually pay their taxes. We recognize that. So we are looking at ways to further reduce the taxes that are owing to the city."