Timmins has taken steps to appeal the assessed values of all the major local mining properties to the Ontario Assessment Review Board (ARB), on the grounds that mining property assessments are just too low. This is being done on a “just-in-case” basis since the city is already in negotiations with the three big mining companies in town to reach some sort of a deal outside of the MPAC (Municipal Property Assessment Corporation) assessment values and procedures.
Part of the reason is that in recent years MPAC has laid out new valuations for mining properties. In many cases means that MPAC is applying lower values to those properties. That means less tax money going into the city hall treasury.
MPAC has mentioned the term Economic Obsolescence (EO) in one of its studies relating to the gold mining industry to justify the need to provide lower valuations. “EO can be described as a form of depreciation or an incurable loss in value that occurs when influences external to an asset itself reduce the value of the asset,” said the study.