A number of municipalities in the NWT are entitled to hundreds of thousands of dollars in tax arrears.

Whether these places will ever collect that money is unknown.

A person, or business, that owns property has it taxed each year. If that tax isn't paid in full, the owner gets charged interest on the outstanding amount. That's known as tax arrears.

Starting with the largest centre in the territory, the City of Yellowknife, it's not clear just how much it's owed in outstanding taxes.

"The city does not have its finalized numbers at this time. The Canada Post strike has also delayed the receipt of some cheques sent in the mail, so it may impact the outstanding balance," the city stated on Jan. 9. 

According to Yellowknife's municipal government, it is currently in the process of closing its 2024 year-end figures, which typically takes until early February.

Property owners who don't pay arrears risk having their property sold to the public at a discount. The deadline to pay last year's arrears was Dec. 31, 2024.

"The city collects these funds by reaching out to property owners to encourage them to complete payments towards the amounts due. If needed, residents have the ability to establish a repayment plan with the city," the municipality added.

Yellowknife isn't the only place looking for back taxes.

The Town of Hay River is also seeking to collect hundreds of thousands of dollars in tax arrears this year.

Glenn Smith, Hay River's senior administrative officer, told SA¹ú¼ÊÓ°ÊÓ´«Ã½ that municipalities can sell properties in arrears SA¹ú¼ÊÓ°ÊÓ´«Ã½” discounted by 50 per cent of the assessed value.

"If a sale occurs, the town can capture dollars owed to them," Smith explained.

The town's next sale is set for summer 2025, he noted.

Currently, the town is participating in a multi-year review of legislation relating to the Property Assessment and Taxation Act. According to Smith, Hay River has suggested changes to the act, including reducing or eliminating the need for properties to sell for 50 per cent or greater of assessed value, and to remove post-sale redemption rights.

"We understand that the current [legislative] assembly will be updating the legislation during their term," he added.

To the west in Fort Simpson, the village is owed about $150,000 in tax arrears. Its deadline to submit was also Dec. 31, 2024,

The Town of Inuvik will hold its property auction in March comprising lots that have tax arrears exceeding two years. 

SA¹ú¼ÊÓ°ÊÓ´«Ã½ reached out to the town for a list of its tax arrears, to understand how much is owed in total, but did not receive a reply in time for publication.