While it might not have much impact throughout most of Wellington County, a reexamining how railways are taxed could provide a financial windfall for Puslinch.
On Feb. 1 council briefly discussed a resolution from the town of Atikokan asking for revisions to address what it calls an inequity in property taxation on railway right-of-way’s collected by Ontario municipalities.
Atikokan councillors contend railway companies in Ontario do not pay a proportionate share of municipal property tax as compared to other properties in that class, or compared to any other municipal tax class.
Atikokan council asked that these companies remit a more equitable share of taxes to the local tax base – calculated using a ton-mile concept (or the revenue gained from moving one ton of goods one mile).
Puslinch councillor Matthew Bulmer asked how those taxes are calculated in Puslinch.
Treasurer Mary Hasan explained the township receives flat rate payments based on acreage.
Bulmer asked whether it would be to the township’s advantage to have taxes based on the ton-mile approach.
Mayor Dennis Lever did not know, but believed communities such as Atikokan and Fort Frances were located on key lines between western and eastern Canada, with a significant amount of rail traffic.
Bulmer pointed out Puslinch contains one of the main Canadian Pacific lines.
Lever said the township could ask what the difference would be using the ton-mile concept for clarification.
