The city will drive forward a plan to levy taxes from mining companies that use Sudbury roads for hauling minerals.
Ward 6 Coun. Andre Rivest said he has been “dwelling” on this issue for several weeks. Ontario’s mining industry is a significant and increasing source of taxation revenue for the federal and provincial governments, but municipalities don’t see a single cent from any of the companies. The mining industry has an impact on the cost of municipal services, and a particularly negative impact on roads, he said.
Council backed Rivest’s idea and will bring a detailed report on Nov. 18 to the Association of Municipalities of Ontario, which in turn, would present the facts to the province in an effort to devise a mineral resource revenue-sharing agreement between mining companies and municipalities.
Rivest said he wants an agreement similar to the Ontario Aggregate Resources Act, under which municipalities are able to charge aggregate hauling companies 7.5 cent per ton. Last year, more than 2.6 million tons of aggregate was hauled on local roads, and the aggregate tax contributed about $200,000 toward the city’s roads envelope.
“If (a tax) is good enough for gravel being transported on our roads, then why not bigger industries,” Rivest asked.
The goal is to incorporate all municipalities in Ontario affected by mining companies hauling on their roads, he said.
Rivest couldn’t pinpoint an exact amount as to how much could be levied from mining companies through such a tax, but said anything would be better than what the city currently gets: nothing.
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Posted by Heather Green-Oliver
