$15 million Chateau Jasper sale key to 60 per cent increase

At least two Jasper hotel owners plan to appeal a whopping 60 per cent assessment increase that has pushed property taxes up for the key Jasper business and tourism sector by more than 20 per cent this year.

Leading the charge is Mountain Park Lodges, which triggered the assessment increase with the purchase of Chateau Jasper last year.

Municipal assessor Troy Birtles said the $15-million sale of the Chateau was a “key factor” in this year’s skyrocketed assessments.

“Assessments have to reflect market value,” said Birtles, who has held the role of Jasper’s municipal assessor for the past three years. “It was purchased for more than it was assessed at.”

Prior sales didn’t cause such sharp increases, MPL general manager Bernhard Schneider contested.

“Probably the purchase triggered it but it’s a different assessor than it was in the past,” he said. “All of a sudden the new guy thinks ‘Oh well, we need to adjust these’.”

Schneider said when the Chateau sold four years ago for more money than the recent purchase there weren’t “any repercussions then.” He also said sales shouldn’t factor in so heavily.

“It doesn’t mean that the hotels don’t increase or decrease in value just because none of them sell,” he said. “We put millions of dollars into these places to keep them up to par.”

Maligne Lodge and the Tonquin Inn, both owned by Decore, will join MPL in its appeal.

“I don’t know whether that’s going to go anywhere but at least we can try something,” said Elisabeth Bahner, general manager of the Tonquin Inn.

Schneider said MPL has unsuccessfully appealed its assessments in the past. “Good or bad, we’ve never been happy with the amount of taxes that we’ve paid.”

Even if the assessments were previously low, he said this year’s sharp jump is especially bad.

“It doesn’t seem fair, especially when you’re looking at a 20 per cent increase from one year to the next,” he said. “A phased-in approach would be much more palatable.”

Municipal manager George Krefting affirmed that sales can significantly affect assessments.

“If properties sell for more that will eventually increase the assessment of other properties,” Krefting said. “Each sale becomes a new benchmark.”

Chad Gulevich, president of the Jasper Hotels Association, said though the hikes are a topic of discussion at meetings, there is no collective plan to appeal the assessments.

“I think everybody’s at different levels,” Gulevich said. “As far as owners (go), I can’t imagine anybody’s looking at this favourably.

“Everybody’s going to do their own thing,” he added.

Jasper town council gave first and second readings last week to the tax bylaw. Third reading is set for May 20. The deadline for appealing assessments is July 15.