Municipalities in northwestern Ontario are asked to support the creation of a new residential property tax rate.

Township of Hornepayne is promoting the idea.

It wants to see a lower rate in communities of fewer than 5,000 people to spur the creation of new housing and attract more people to them.

Chief Administrative Officer Manuela Batovanja says there is a lot of land available that is not being developed because of the region’s current tax rates.

“We’re stuck with a lot of vacant land. This land is serviced. There’s water, there’s sewer, there’s electricity. Everything we need, it’s either vacant or has dilapidated houses on it,” says Batovanja.

“Nobody wants to move to the north to build because our tax rates are too high.”

Batovanja presented the proposal to Atikokan council this week.

She says it would offer flexibility to the township in setting a rate that best suits it.

“What it would do is allow you, if somebody was to come in and build a home, to reduce the assessment or the rate on that home by whatever percentage is feasible for your town,” says Batovanja.

Hornepayne is soliciting support for the idea.

Batovanja says she was able to briefly speak to provincial Finance Minister Peter Bethlanfalvy about the concept at a recent municipal meeting, who encouraged her to follow up with his staff.