Essar Steel off the hook for city taxes owed

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They say you can’t fight city hall, but Essar Steel Algoma did and won to some extent.

A Judge has accepted the position of a court appointed monitor citing the company can not pay city taxes because it doesn’t have the money.

The Company owed the city over $14 million in back taxes prior to it seeking CCAA protection in November 2015.

The court ruling means the Essar Steel doesn’t have to start paying its taxes until the company comes out of CCAA protection – which has also been extended.

The company’s tax bill for this year was about 7 million, leaving city coffers short this year.

 

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18 COMMENTS

    • The city would never attempt such a venture, but it sure would be nice to see Essar and everyone to do with it vacate this city for good and a new *responsible* owner take over, not one that thrives on screwing small cities into the ground like Essar has done to this one.

  1. I ran for Council in Ward 2 and my platform main plank is property tax reduction by 8 %. They elected .a tax and spender who voted for the property tax increase.
    I did not have enough funds to mount a campaign.They media would not deal with the issues just to attack me on Facebook and Twitter.

  2. During the budget input sessions this 41 million was not mentioned as they keep this a secret so they can funnel the money to outside agencies.like Sault College. Or AU or what they want to do its like a Slush fund.You ask any Councillor and they dummy up on this .

  3. The city is being schooled in dealing with owners from a third world country where nothing is too low to try.

  4. I don’t mind paying property taxes that are within reason.We pay the highest in Ontario. We deserve a tax decrease about 8%. That could have been done.How you ask?
    The city budget for 185 million.
    The city receives.This from the Federal and Provincial government s about $41 milllion. Take 10 million of that and apply it to the 185 million,reducing residential and business taxes by 10 %. You can’t do that, oh yes you can! Once you receive monies the Municipality can do whatever they want with the money. The law that prevented that was repealed in 2009.How do I know? I know because I contacted the Municipal Affairs about Huron Central Funding, being diverted to port of Algoma study.The Minister of Municipal Affairs email me back stating the law that prevent that had been repealled.Thetefore wht I propose would be OK. The politicians lie to pass their own agenda. Not the taxpayers.

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