View of the smelter from East Trail, Oct. 7. (Sheri Regnier photo)

View of the smelter from East Trail, Oct. 7. (Sheri Regnier photo)

Late Teck Trail tax payment incurs hefty penalty

Teck owes the City of Trail a $550,000 late penalty for missing Aug. 31 property tax deadline

The City of Trail could receive another half a million dollars from its greatest municipal taxpayer, Teck Trail Operations.

The reason is that the company failed to meet the Aug. 31 extended property tax deadline, which means Teck owes the city a 10 per cent late fee or more than $550,000 in late penalties.

“As noted, there was one significant payment that was received one day after the tax due date,” said the city’s Chief Administrative Officer, David Perehudoff.

“And this results in a significant revenue gain when the 10 per cent late penalty is applied to the current total property tax balance outstanding.”

Previous: COVID-19 case confirmed at Teck Trail

Previous: Why Teck Trail is an essential service during COVID-19

Trail’s Deputy Director of Finance, Rino Merlo, submitted a summary of his report on the 2020 Trail property tax collections at the Sept. 28 governance meeting.

In all, the city collected over 97 per cent, or $22.2M of its total consolidated tax levy, although, almost a quarter of that total or $5.5M came a day late.

The city had received in excess of $16-million in municipal taxes by the Aug. 31 deadline, before the payment from Teck Trail Operations came through on Sept. 1, carrying an estimated $550,000 late fee.

The city had extended the traditional July 2 deadline to Aug. 31 and froze a scheduled tax hike due to the onset of the coronavirus.

To help the city pay its own provincial and federal taxes on Aug. 1, Teck Trail Operations made an early payment of half their taxes owed.

“They responded positively to the city’s request and graciously made a voluntary payment of $5.561 million on July 2 and this left them with an outstanding current property tax balance of $5,561,630,” explained Perehudoff.

Unfortunately, Teck’s second payment was not received until Sept. 1; one day after the Aug. 31 due date, he clarified.

“The outstanding balance of current property taxes after the due date resulted in a total penalty charge of $556,163 when the 10 per cent was applied.”

As a result, the city estimates its late penalties will exceed $600,000 compared to its original estimation of about $64,000.

Teck Trail Operations made a brief statement to the Times inquiry saying, “We are currently reviewing the late tax payment and will be discussing the issue with the City of Trail.”

Tax revenue is the single greatest resource for the city, and last year the 2019 taxes accounted for 66 per cent of total municipality revenue.

The next highest is sales of services at just over 14 per cent.

Trail’s total 2020 tax levy neared $23 million, which is down about $400,000 from last year.



newsroom@trailtimes.ca

Like us on Facebook and follow us on Twitter

Business and IndustrialCity of Trail

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rossland council encourages everyone to support locals only recommendations. Photo: Jim Bailey.
Rossland council promotes ‘Locals Only’ inititative

Rossland mayor encourages people to restrict travel and enjoy what your home has to offer

Caroline Lafond is a Recreation Fish and Wildlife student at Selkirk College. Photo: Submitted
Ecological Comment: Help keep the goats of Gimli wild

A column written by Recreation Fish and Wildlife students at Selkirk College

Kootenay Columbia Teachers’ Union president Andy Davidoff. Photo: Jennifer Small
An open letter to Premier Horgan and Minister Whiteside: Let’s stop harming our children during a pandemic

A letter from Andrew Davidoff, President Kootenay Columbia Teachers’ Union

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Employers might be able to require COVID-19 vaccination from employees: B.C. lawyer

‘An employer must make the case’ using expert science, explains lawyer David Mardiros

Interior Health reported 79 new cases of COVID-19 and two new death in the region Friday, Jan. 22, 2021. (Ben Hohenstatt/Juneau Empire)
79 new COVID-19 cases, two deaths reported in Interior Health

Both of Friday’s deaths were both recorded at long-term care homes

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

A video posted to social media by Chilliwack resident Rob Iezzi shows a teenager getting kicked in the face after being approached by three suspects on Friday, Jan. 22, 2021. (YouTube/Rob i)
VIDEO: Security cameras capture ‘just one more assault’ near B.C. high school

Third high-school related assault captured by Chilliwack resident’s cameras since beginning of 2021

FILE - In this Feb. 14, 2017, file photo, Oklahoma State Rep. Justin Humphrey prepares to speak at the State Capitol in Oklahoma City. A mythical, ape-like creature that has captured the imagination of adventurers for decades has now become the target of Rep. Justin Humphrey. Humphrey, a Republican House member has introduced a bill that would create a Bigfoot hunting season, He says issuing a state hunting license and tag could help boost tourism. (Steve Gooch/The Oklahoman via AP, File)
Oklahoma lawmaker proposes ‘Bigfoot’ hunting season

A Republican House member has introduced a bill that would create a Bigfoot hunting season

Economic Development and Official Languages Minister Melanie Joly responds to a question in the House of Commons Monday November 23, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Federal minister touts need for new B.C. economic development agency

Last December’s federal economic update promised a stimulus package of about $100 billion this year

FILE - In this Nov. 20, 2017, file photo, Larry King attends the 45th International Emmy Awards at the New York Hilton, in New York. Former CNN talk show host King has been hospitalized with COVID-19 for more than a week, the news channel reported Saturday, Jan. 2, 2021. CNN reported the 87-year-old King contracted the coronavirus and was undergoing treatment at Cedars-Sinai Medical Center in Los Angeles. (Photo by Andy Kropa/Invision/AP, File)
Larry King, broadcasting giant for half-century, dies at 87

King conducted an estimated 50,000 on-air interviews

BC Coroners Service is currently investigating a death at Canoe Cove Marina and Boatyard in North Saanich. (Black Press Media File)
Drowning death in North Saanich likely B.C.’s first in for 2021

Investigation into suspected drowning Monday night continues

Kimberly Proctor, 18, was murdered in 2010. Her family has spent many of the years since pushing for a law in her honour, that they say would help to prevent similar tragedies. (Courtesy of Jo-Anne Landolt)
Proposed law honouring murdered B.C. teen at a standstill, lacks government support

Ministry of Mental Health and Addictions has concerns with involuntary detainment portion of act

Sunnybank in Oliver. (Google Maps)
Sunnybank long-term care in Oliver reports third COVID-19 death

The facility currently has an outbreak with 35 cases attached to it

Most Read