"GST grows with economy, but Property Tax doesn't" - municipalities seek growth revenue

Decisions made at the Federation of Canadian Municipalities board meeting are pushed and lobbied for in Ottawa, and they're intended to give advantages to communities over years to come. Recently, Portage City Councillor Joe Masi was part of the board meeting discussing three major concerns they had, and one of them was a new municipal growth revenue program for municipalities.

"Right now, municipalities get about eight to nine cents for every tax dollar to do all the things they need to do," explains Masi. "The report that will be released at some point in the future is looking at how can municipalities get some growth revenue, sort of like the GST that grows with the economy. Right now, property taxes don't grow with the economy. So, when we have to get more revenue, we have to put it on the property tax bill."

He explains the report clearly shows municipal revenues across Canada are going downward and the growth revenues are going upward, necessitating some opportunity to acquire growth revenue. 

"To start really addressing some of our infrastructure, we have policing costs," adds Masi. "We have recreation, we have a number of things that our community needs. And so when that report is released, it'll clearly show how the need for that extra growth revenue from for municipalities is needed."