Essar Steel told to start paying Sault Ste. Marie taxes

The City of Sault Ste. Marie says a decision on its motion for tax payment from Essar Steel was released today.

The municipality is owed millions of dollars in back taxes by the steelmaker, which is currently under creditor protection.

In a statement, the city says Justice Newbould dismissed the city's motion on the understanding that Essar would commence paying city taxes at a rate of $350,000 per month.

The city adds the issue of back taxes was not addressed.

Last month, Mayor ChristianProvenzano told CBC News the steelmaker owes about $26 million to the city in back taxes.

The city says the decision is being analyzed by its Toronto-based lawyers and the internal city team.