WOODLANDS COUNTY – Woodlands County Council was advised of two complaints regarding unexpected tax increases received from residents at the June 18 meeting.
This regards a minimum tax tied to the grazing leases,” said John Orwa from County administration.
Councillors voiced their residents’ concerns and council approved a motion to not change the grazing tax policy as it sits.
The Tax Subcommittee will review the possibility of a credit towards grazing taxes in the future.
There are 179 active Crown grazing leases within Woodlands County. The largest Crown grazing lease has 59 parcels covering 9,005 acres.
The tax equates to $50 per parcel, so the largest lease would be charged $2,900 in taxes.
Woodlands County collects $34,000 in Crown grazing tax, based on active grazing parcels.
Coun. Alan Deane said these complaints needed to be dealt with quickly.
The concern that was brought to Deane worked out to a 2.5 per cent increase and the resident was not aware that this was coming. Deane recommended they reduce or eliminate this grazing tax until next year.
Coun. Peter Kuelken said he spoke to three different lease holders in his area that were very surprised by the tax.
As the forest harvesting gets into those zones they will be required to not use those leases through that timeframe and the County will still be taxing for the lease.
It took landowners who have been in that situation previously three or four years to get compensation from the forest companies, Kuelken said. This resulted in significant losses for those landowners.
Kuelken acknowledged the need for the County to achieve cost recovery but did agree with Deane’s recommendation to not implement this tax yet.
Coun. John Burrows said Deane and Kuelken summed it up that better notice would have been a more positive action and sees the negative impact to residents.
County Chief Administrative Officer Peter McKay said that the tax was implemented to establish that residents were paying their fair share.
Coun. Devin Williams said he has talked to producers who cannot find grazing leases and feels those people would be thankful to pay the taxes to get the grazing land.
