Thank you, Madam Chair. I am pleased to have this opportunity to speak to the Committee about the Act to Amend the Property Assessment and Taxation Act. This bill would provide a more streamlined process for collecting outstanding property taxes. The NWT Association of Municipalities has requested these amendments because of the current process which requires taxing authorities to go to court, is often long, complicated and expensive. In some cases, the legal costs are so high that it is not worth it for them to use this process at all, so the taxes remain uncollected for several years.
With these amendments, tax authorities would be able to recover the cost of collecting tax arrears from the property owner. By following procedures set out in this bill, they would also be able to sell land and building for taxes, without going through the courts. These amendments would not allow Municipal taxing authorities or the Department of Finance to sell Indian Affairs Branch, or band land or any land that is exempt from taxation or cannot be sold under a land claims agreement.
Madam Chair, people who do not pay their property taxes are already liable to lose their property through a court order. These amendments would create a different process for recovering taxes. They would not change the end result. Other Canadian jurisdictions already have similar provisions. Today's climate of fiscal restraint makes it especially important to have an effective and efficient way to collect outstanding property taxes.
Municipal taxing authorities in the Northwest Territories should have access to the same remedies as their counter parts, elsewhere in Canada. The NWT Association of Municipalities supports this bill and are anxious to see it passed. The Municipalities and I recognize that individual property rights need to be protected, however, property rights have to be balanced with the responsibility to pay taxes. This is to protect the interests of the community as a whole and of individuals who do pay their taxes.
Madam Chair, this bill includes a number of safeguards to ensure people have several opportunities to pay their taxes before their property is sold. It also includes protection for third parties with registered interest in land, who would be affected by a tax sale. Madam Chair, I am satisfied the new tax bill procedures in this bill will treat everyone fairly. Thank you, Madam Chair.