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Iqaluit's tax arrears charges violate NLCA, NTI says

City's interest rate five times national average?

GREG YOUNGER-LEWIS

Iqaluit is violating the Nunavut land claims agreement by charging 22 per cent interest on property tax arrears, insists Cathy Towtongie, president of Nunavut Tunngavik Inc.

In a letter to city council, Towtongie said Iqaluit must reduce the interest it charges on overdue property taxes to meet its legal responsibilities to Inuit.

Pointing to examples of interest rates in cities around Canada, Kowesa Etitiq said during this week's council meeting that Iqaluit's rate is about five times higher than the national average.

Iqaluit's interest rate stands at 22 per cent; Etitiq said it should be closer to rates in other municipalities, like Whitehorse, which charges only 3.5 per cent.

"I'm here to implore the council to change [the interest rates]," said Etitiq, who has previously described the interest rates as "criminal."

"There is no need to charge 22 per cent. Just because we pay the highest in Canada for everything else, does that mean we should pay the most in Canada for interest?"

Last year, the city told three Inuit families that unless they paid their tax debts, they would lose their homes. According to court documents, their combined debt reached $350,000.

The city took its case to civil court, which prompted Jonah and Lizzie Kelly to borrow money from a bank to settle their tax bill. Jetaloo Kakee, as well as Akeeshoo and Alicee Joamie, are due back in court next month.

In a letter dated Jan. 12, Towtongie argued the financing issue falls within the definition of a "social program," and therefore within the purview of the land claims agreement.

Although the letter doesn't explicitly explain the link, Towtongie cites Article 32.1.1, which makes reference to governments in Nunavut being obliged to provide Inuit with an "opportunity to participate in the development of social and cultural policies, and in the design of social and cultural programs and services, including their method of delivery."

Based on this article, Towtongie said NTI opposed Iqaluit's interest rate on unpaid taxes.

"[The City of Iqaluit's interest rate] continues today to affect the well-being of Inuit residents by contributing to the difficult economic conditions many of them are experiencing," Towtongie wrote.

Councillor Glenn Williams countered that NTI had gone too far in suggesting that the city was neglecting its responsibilities under the land claims agreement.

Williams questioned how the city might have been negligent, considering there have always been Inuit members on council.

However, Williams stressed that his opposition to the letter didn't mean he was against reducing the interest rate.

"I'm not discounting this issue," he said. "It's something this council will deal with."

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