• CTF Releases Property Tax Reform Proposal to Protect Residential and Commercial Ratepayers
  
• Poll shows 70% of Ontarions Support Property Tax Cap
  

TORONTO: The Canadian Taxpayers Federation (CTF) released a property Tax Cap proposal today, calling on provincial governments across Canada to limit property tax increases to no more than the rate of inflation. The proposal freezes residential property tax rates and creates a new sales-price based assessment process tied to the rate of inflation. The proposal further calls for the equalization of rates across property classifications, for rules to allow citizens to vote on local tax levels, and the adoption of more user-based funding for local services.

"The federal and many provincial governments are reducing taxes, but municipal governments are moving in the opposite direction," said Maureen Bader, B.C. Director of the CTF and the paper's author. "A property Tax Cap will create predictable payments for local ratepayers and predictable revenues for local governments by making revenues, not spending wish lists, the first consideration in the municipal budgeting process."

Ontario property taxpayers are receiving new property value assessments in the mail for the first time in years as the provincial freeze on assessments has just been lifted. The new assessments will be phased in over four years and will take effect for new property taxes in the Spring of 2009 in time for the new municipal budget cycles. "The CTF proposal would protect Ontario rate payers from run away property tax hikes as they have been seeing", said CTF Ontario Director Kevin Gaudet.

A CTF commissioned national public opinion poll of 1,000 people conducted by Praxicus Public Strategies taken in August 2008, shows strong support for two of the paper's key CTF recommendations: 58% support reducing property taxes and introducing more fees for service, and 68% support the CTF's Tax Cap model. In Ontario support rose to 70.1% support.

Unlike federal and provincial governments, municipal governments determine how much they are going to spend then determine the tax rates to pay for that spending. As a result, local property tax bills tend to be unpredictable.

"Most municipal spending increases are running above the combined rate of inflation and population growth, and it is reflected in higher property tax bills," continued Bader. "This can be alleviated by focusing on core responsibilities, moving to user-based approaches and capping property tax increases,"

The Tax Cap proposal also calls for an equalization of property tax rates across different property classes. The complete paper may be found by clicking HERE.

By: Kevin Gaudet
Posted: November 02, 2008
Topic: Ontario

Type: News Releases

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