US EditionNorthwest B.C. Resource Town Can't Give Its Struggling Sawmill Tax Exemption
City legislation prohibits property tax exemptions, leaving Kitsumkalum First Nation unable to receive $245,382 in penalties and interest relief on Skeena Sawmills, officials said.
- On Aug. 22, Troy Sam, Kitsumkalum deputy chief councillor, requested tax relief from City of Terrace, British Columbia, but provincial legislation bars such exemptions.
- After years of sporadic operation, the mill shut in early fall of 2023; Kitsumkalum First Nation bought Skeena Sawmills and the adjacent Skeena Bioenergy pellet plant this spring.
- Kitsumkalum requested $125,637 back and forgiveness of $119,745 in penalties and interest, a combined request of $245,382, during a council appearance on Aug. 22.
- The B.C. Assessment Authority may provide relief by adjusting property assessments based on Skeena Sawmills' operational status, including its mill shutdown in early fall of 2023, which might reduce the financial burden given unpaid taxes absorbed by Kitsumkalum.
- Community leaders note the stakes for local jobs and stability as Kitsumkalum First Nation covered unpaid taxes left by previous owners and signaled long-term commitment despite the mill's 2023 shutdown and earlier tax break appeals.
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