The City of Dryden lost its appeal to have Domtar pay $7.9 million in unpaid taxes.

An Ontario Superior Court has turned down the northwestern Ontario municipality’s request for the local mill to pay taxes and assessment from 2009 to 2012.

The original Municipal Property Assessment Corporation (MPAC) assessed value for these years was $52 million. The Assessment Review Board’s (ARB) returned assessment for the pulp mill was $14.4 million.

The result of the ARB’s decision was the city must pay Domtar a retroactive refund of property taxes amounting to $7.9 million.

But no worries to taxpayers, said Mayor Greg Wilson in a news release.

“The city has planned and prepared for any eventuality regarding a decision in this legal process including refunding, in full, tax monies owed to Domtar with no additional impact to the local taxpayers.

“Dryden council will continue its work to move the city forward and to lobby the province for fair tax assessment policy and ensuring MPAC meets its duty to represent its municipal customers in these tax processes.”