Big changes coming to N.W.T. land fees

People who lease land from the N.W.T.government could see their rates go up or down, depending on where the land they are leasing is located.

The territory's Department of Lands is rolling out a new pricing regime in an attempt to minimize discrepancies between lease rates on two types of land commissioner's land, which is located in and around communities, and territorial land, which is primarily rural, public land.

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Starting April 1, the annual minimum rate for both types of land will be $840. The adjustment was based on changes to the consumer price index over the past 20 years, which is when the rates were last adjusted.

These changes come as a result of devolution, which saw responsibility over the territory's land and resources transferred from the federal to the territorial government in 2014.

Discrepancies in former pricing structure

The territorial government has a complicated system forcalculating lease rates. On commissioner's land, ratesare calculated at 10 per cent of assessed value, based on a formula laid out in the Department of Municipal and Community Affairs Property Assessment and Taxation Act.

The lease rates forterritorial land are calculated at 10 per cent of appraised value, using external market rates.

The previous minimum ratefor commissioner's land was set at $600 per year while the minimum rate for territorial landwas $150 per year.

According to Blair Chapman, director of commissioner's land administration with the Department of Lands, the former pricing structure wasn't always fair.

Prosperous Lake, for example, is located on a boundary between commissioner's and territorial lands, which means the costof land leases could vary wildly depending on which side of the boundary a lease is on.

"If the value of [a parcel of commissioner's land] is $15,000, it would be a lease rate of $1,500 per annum," said Chapman, basing his calculation on the rate of 10 per cent of assessed value.

"If you were on the territorial side, based on appraised values which is a different calculation, you would now be paying an annual rate of $150 per year."

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Chapman said this discrepancy was one issue many people commented on during public consultations on the fee structure.

This isn't the only change fee calculations for residentialleases on commissioner's land will shrink from 10 per cent of assessed value to five per cent, which means some people might see their yearly rates reduced.

All of these changes will be applied when leaseholders renew their five-year land-use leases.

According to the Department of Lands, there are 1,452 commissioner's and territorial land-use leases in the Northwest Territories.

On top of these changes, the territorial government is increasing a number of other territorial lands fees, such as administrative fees, with many of these prices doubling.