Kincardine Council is calling on the Ontario government to review and update its property tax assessment model for nuclear generation facilities and other electricity industry properties.
Over the past three reassessment cycles, revenue from Bruce Power has dropped from 50 per cent of the municipality’s levy in 2008 to just 18 per cent in 2024.
Municipal Tax Equity (MTE) Consultants Vice-President of Policy and Consulting Services Peter Frise said the decline stems from static, non-market assessment models used for nuclear properties, which fail to reflect market changes.
"The challenges are related to provincial policy. Nothing in our study suggests somebody's doing something wrong or counter to those policies," Frise explained. "So, for example, we're not in any way saying Bruce Power is not paying what they should be paying, or that, you know, the assessment is wrong, or something like that. We're saying that the rules that make those things right are wrong, if that makes sense. It's a policy issue that needs to be changed."
And he warned a huge assessment change could be coming in the near future.
"At 100 per cent reassessment change, just rough models suggest another 50 per cent decline from where you're at now, in terms of Bruce Power's share of the local revenue," Frise told council. "That would all be shifted onto other taxpayers."
A study by Municipal Tax Equity Consultants warns that continued reliance on these outdated policies could burden Kincardine taxpayers with unsustainable costs.
Council passed a motion calling for action from provincial leaders, including the energy and finance ministers, as well as Premier Doug Ford.
"This is not an issue with Bruce Power, absolutely not," stressed Mayor Ken Craig. "In fact, Bruce Power has been very supportive in acknowledging the challenges we're facing, and have offered the assistance that they're able to. It's not even an issue with OPG. It's not the point. It is the regulation that OPG is following, provided by provincial policy."