New study: Property tax not enough for civic governments
11/27/2008 at 10:32 AM
A new study described in the linked article below is making a good amount of news today.
It suggests that the existing property tax system used by Canadian cities is out-dated as a way to pay for the expenditures that a modern day city has (as Brandon can relate to) and that a new tax system should be looked at.
The study actually suggests reducing property taxes and making revenue from vehicle usage and visitors, modest broad-based local sales taxes, and a small income tax (Manitoba municipalities receive a share of provincial taxes per the Lethbridge Herald article below).
What really put things into perspective were the Regina numbers in Leader Post article I've linked below. Our numbers are likely somewhat different, but they say that per capita their city's share of tax revenue was only 5.3%compared to 56.4% federal and 38.3% provincial.
Recently we have seen alternate revenue sources such as a hotel tax and a separate municipality tax considered in Brandon and Westman. Does this study give exploring those new revenue streams any extra justification in your mind? What alternate revenue streams (if any) would you propose a city such as ours pursue?
Here's the story from a Regina perspective:
http://www.canada.com/reginaleaderpost/news/story.html?id=f39c9df6-8524-4eab-b081-05141818411c
and a Lethbridge one:
http://www.lethbridgeherald.com/content/view/10774/26/