The new owners of Skeena Sawmills won't be successful in obtaining property tax relief from the City of Terrace.
The request was made by Kitsumkalum First Nation deputy chief councillor Troy Sam during an appearance before council Aug. 22.
"We'd like to discuss some land tax issues while the mill is not in operation to see if we could get a tax break while the mill is sitting in limbo," Sam told council.
"Kitsumkalum is in it for the long haul and we're looking forward to working with the city, the (logging) contractors on the impact of First Nations to bring stability and certainty to the region," he added.
But information from the city indicates that provincial legislation governing its activities prohibit it from granting tax relief or relief from fees by way of an exemption.
Still, the Kitsumkalum First Nation might find some relief another way because the B.C. Assessment Authority, the agency which sets property values, can adjust an assessment based on the operational status of an enterprise.
In the case of Skeena Sawmills, the mill has been operating sporadically for the past three years and shut down completely in the early fall of 2023 when its then owners declared bankruptcy.
Kitsumkalum purchased the sawmill and the adjacent Skeena Bioenergy pellet plant this spring. The First Nation also covered taxes that had been unpaid by the previous owners.
Those owners also wanted a break from property taxes, something expressed during a presentation to council in March 2023.
The request was to refund back to Skeena $125,637 in property tax penalties and interest it has paid since 2019 and to forgive an outstanding $119,745 in penalties and interest charged for a total $245,382.
But as is the case with Kitsumkalum, the city has no legal mechanism to consider such a move.
