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29 Apr

Mowat Centre’s Sunil Johal on the Need for Revenue for Cities

April 29, 2019 | By |

The Centre’s Policy Director argues that Canada must modernize revenue generation and taxation policies.

Sunil Johal and Kiran Alwani write in The Conversation that municipalities are facing a variety of costly responsibilities with little room for a growth in revenue with their reliance on property taxes, developmental charges, user fees and intergovernmental transfers. They offer some policy options for finding new revenue tools.

“Some short-term options that municipalities should consider include introducing progressive property taxes, with higher rates applied to more valuable properties. To avoid burdening house-rich but low-income households with high property tax bills, deferral programs that delay payment till the property is sold could be introduced or expanded.

Introducing “teleworking” and “co-working” space classes of property tax could also be considered to reflect the changing nature of work, as well as long-standing proposals to implement a one per cent municipal sales tax which would raise $2.5 billion in Ontario.”

Read more here.