Pictou County faces the 'new normal' as big companies seek lower tax bills

The Pictou County amalgamation vote is over, but local governments still face the economic squeeze as two of the area's largest employershave secured, or are seeking, lower municipal tax bills.

Tire manufacturer Michelin is in the midst of a two-year reduction in itscommercial assessmentthat will see its annual municipal taxes drop by $300,000.

"That's a lot," said Deputy Warden Andy Thompson."The decrease in assessment in the county is the new normal."

• Michelin to increase winter tire production at Pictou County plant

Drop in plant's assessment

In 2014, the French tire giant cut production and laid off severalhundred workers at its Grantonplant.It then approached the provincial assessment agency PropertyValuationServices Corporation and successfully argued that itscommercial assessment should be reduced.

"In late 2015 we finalized discussions with PVSC, which resulted in atwo-year tax reduction in value for this site," Michelin spokeswoman Deborah Carty said in an email to CBC.

In 2016, the plant assessment dropped from $39 millionto $33 million. Next year, the plant will be valued at $28million.

Growing tax burden on residents

TheMunicipality of PictouCounty has been shifting more of the taxburden onto residents, who now bear 75 per centof taxes. That's up from 69 per centseveralyears ago.

"It's not going to get any better. No new Michelins, Sobeys, NorthernPulp, or Scotsburn Dairy are going to be here," saidThompson.

He estimates the loss in taxes is worth about threecents on the per-$100tax rate, which currently stands at 81 cents for residential.

Thecounty has already depleted its reserves in an effort to hold the lineon taxes.

It's happening in Stellarton, too

It's not just the county. In the Town of Stellarton,headquarters ofSobeys, the grocery giant has appealed the commercial assessment ofseveral of its localproperties.

A decision is expected in abouta month.The company says the appeals are routine. It declined to identify thepropertieswhere it is seeking lower taxes or why.

"It's all a matter of due diligence on the part of the business,"Sobeys spokeswomanShauna Selig said in an email to CBC News.

Selig says Sobeys has 1,100 people working in its offices.

Concern is'very legitimate'

Jack Kyte of the Pictou Chamber of Commerce agrees assessment appealsare a regular part of business, buthe says what's happening is a"huge hit" to municipal taxation.

"I think it's very legitimate to be concerned about the drop inassessment. It's not going in the right direction," he toldCBC News.

On Foord Street in Stellarton,workers are renovating a large buildingthat used to be part of Scotsburn Dairy before it was sold to Saputo.In 2012, the building was assessed at $813,000, whichdropped to$296,000 in 2016. In April, it was sold for $60,000.

• Saputo to close 3 plants with loss of 230 jobs

"That underlines the problem in rural Nova Scotia where a lot ofproperties are getting older and the value is getting less," Kyte said.

A short distance away in Stellarton's industrial park, the one-timehome of manufacturerClairtone has seen its value go up, but for how long remains to be seen.

VidaCannabis wants to turn the building into a medical marijuana growoperation, but it has yet to receive a licence from HealthCanada. Inthe meantime thecompany has appealed the property's $3.8million commercial assessment.