Gathering Turns Heat Up On Taxation Issue
“TONIGHT IS JUST THE TREMOR OF THE EARTHQUAKE TO COME” ATTENDEES TOLD.
By Robert Thomas
It may have started as a small fire kindled with some lath and scraps of wood but by the time the gathering was done it was a roaring fire.
Hot enough to melt the snow on the ground within 15 feet of it. Hot enough for someone to shout “Go get them Uncle Bernie!”
A fire that grew until Bernie Dombowsky took to a makeshift stage and moved the fire from the outdoor furnace to under a boiling pot of water.
And for most of the people gathered figuratively threw the Saskatchewan Assessment Management Agency (SAMA) in it.
Attendees gather around the outdoor fireplace - MJ Independent photo
That was the scene on Monday evening as close to 100 people gathered for a winter hot dog and hot chocolate barbecue put on by the newly formed group Assessment Watchdog.
The purpose of the meeting was to draw public attention to what the growing group sees as unfair business property assessments which target Moose Jaw's vital small business community.
Dombowsky told the gathering how he and Kristy van Slyck had taken their concerns to City Council and what he saw as empty words coming from them.
“They (Council) said they would do something sooner rather than later that was in September. Tomorrow is when we have our first meeting SAMA. And (former Councillor) Brian Swanson said they will delay and delay and delay until it dies. Well this is not going to die,” he said to an applauding crowd.
He said the gathering was called on short notice was the results of the audits of tax appeals was completed and the results were in.
“If anybody is following City Council they fired the old Board Of Revision because that Board had given some really positive,” he claimed, adding a new Board had “been appointed because that Board was giving them whatever decisions that they wanted.”
Bernie Dombowsky speaks to rally attendees - MJ Independent photo
He spoke about 46 out of 47 decisions on business property tax appeals had been denied.
Despite the amount evidence submitted appeals were denied he claimed “because everyone had the same rubber stamp. Denied for lack of evidence.”
“For everyone putting in an appeal to prove that SAMA did something wrong. And then the judge and the jury can say obviously it's not enough evidence,” he said.
“There was one successful appellant and that was WalMart so you know who is in control here,”he claimed to the crowd that jeered the statement.
Kristy van Slyck spoke about the complexity of the assessment appeal process and how it simply buried most small businesses from even attempting an appeal.
“I have been putting in so, so many hours learning it and the problem lies that they did not use enough data,” she said, adding through her own research SAMA had not used actual data but adjusted data instead.
“Those two words cannot go together.”
“I don't know what to say because there are so many problems with the system. There are so many areas that need to be changed that need to be adjusted,” she said.
She spoke about the three divisions (areas) of SAMA - the model developers, the assessment service provider and quality assurance.
Rally attendees enjoyed hot chocolate and hot dogs - MJ Independent photo
“Quality assurance is suppose to be an independent group that is suppose audit the work they did to get the Cap (Capitalization) Rates and the base rent for their model. However it's SAMA, SAMA, SAMA and they don’t seem to think there is any errors and we believe there are.”
Dombowsky spoke about what he saw as his own personal business property assessment situation where his business, Charlotte's Catering, has a higher assessment than the headquarters of Fifth Avenue Collection - the former Grayson family mansion.
Fifth Avenue Collections corporate headquarters - MJ Independent photo
He also pointed out how he saw the Aspen Dental Clinic on 9th Avenue NW being worth $1.2 - $1.5 million and M and M Hair and Body Salon on 4th Avenue SW - described as a square box by its owner - has a higher property tax rate.
“What they’ve done is jacked up the appraisals on small businesses like retail businesses and restaurants and lowered the assessments on high (income) earning businesses.”
He spoke about how in the past there was one Cap Rate and presently there are multiple Cap Rates “that give the best rates to doctors, lawyers, dentists and investment brokers.”
“Their rate is three times better than the rate they gave to small business.”
Dombowsky said the business hurt the hardest by the COVID - 19 lockdowns “are now being crushed with huge property tax increases.”
He gave an example of a small retail business on Main Street paying 96 percent of their rental for property taxes while an investment dealer in the Downtown core was paying only 17 percent.
“That's a 500 percent difference and that’s why we are here tonight."
Dombowsky said “the earthquake needs to come in January when we can get organized…keep your ears posted for what’s coming in January.”
Media Questions
Following his presentation Dombowsky agreed to an impromptu presser.
The questions were tough at times for Dombowsky to answer.
At one point while answering what he had gone through he was overwrought with emotion and close to tears.
Asked about the turnout considering for months it was largely just two people fighting the business property assessment structure Dombowsky said it was “excellent.”
“There is such a sentiment of disdain for what SAMA has done. Unbelief and just total frustration with the way SAMA is assessing, which turns into tax dollars, but also treating (small business property taxpayers),” he said.
He spoke about the frustration he had when he won locally at the Board of Revision and only to lose his victory at an appeal hearing.
“They attacked my character, in saying what I said is wrong. Anyway it just bothered me to no end to a point where I put…” he said until he emotionally was no longer able to speak momentarily visibly tearing up.
At that point someone shouted fron the crowd “we love you Uncle Bernie!”
The crowd broke out into a loud and lengthy applause and others shouted “yeah Uncle Bernie you got this.”
“That’s when I put the For Sale sign on the kitchen. Like you can only be crushed so far before you just want to get away,” Dombowsky said regaining his composure.
Vehicle at rally had signage on it - MJ Independent photo
“I felt they treated me as if I was somebody who could be bullied and I never been bullied before in my life.”
“This was the ultimate form of bullying because there is no way you can win. There is no way that I knew (how to win). My accountant said ‘just pay it. You can't win’ but it was so wrong I had to win.”
When asked about how many other businesses had approached him he spoke about M and M Hair and Body Salon as one example hit with an appeal on her tax assessment Board win.
“We want City Hall so they should step in and correct what SAMA is doing and give a favourable result.”
Asked by MJ Independent what number of businesses could ho under Dombowsky gave the example of a vacant small (27 foot wide) retail building on High Street West while right across the street the Chow and MacLeod Law Office is taxed less.
“That just tells you how inequitable this whole thing is.”
Dombowsky said when businesses close it has a domino effect on neighboring businesses.
“It’s a delayed effect the businesses haven’t closed yet but once they close its harder for your neighbour to stay open because the traffic flow slows down as well. Once you get a dying business community the rate of death (of busineses) increases and its so hard to get back again.”
Dombowsky said it was up to City Hall to “change the atmosphere” so businesses can feel they can survive without being crushed.”
Asked later van Slyck she was happy with the turnout.
“I am so impressed. I am so grateful for the support. And everyone is really happy we are moving forward.”
Asked if she personally thought in the present system a small business cab win in the appeal system she replied no.
“No I do not. Not anymore. A couple of years ago, yes, sure.”
Asked what she based her opinion on she replied on her own experiences spending hours on appeals only to be turned down because of “assessor professional discretion.”
Van Slyck said the only way to find equity and fairness for smaller businesses was through system change.
It’s something Dombowsky said what they are working towards and it starts with Moose Jaw City Council.
He asked those attending to get ahold of Council members and express their concerns on the issue and ask for change.