reprinted from the Regina Leader-Post
Tax plans blasted
By Bruce
Johnstone The Canadian Federation of Independent Business (CFIB) has come out swinging against Mayor Pat Fiacco's demand for increased taxation powers, such as a $25 surcharge per vehicle, a hotel tax and fuel tax. "There's absolutely no appetite for city hall getting new taxation powers," said Marilyn Braun-Pollon, executive director of the CFIB in Saskatchewan. Braun-Pollon was referring to a recent survey of CFIB members in the province, which indicated more than 80 per cent are opposed to municipal governments getting new taxes, such hotel and fuel taxes, or vehicle levies. "This is going to put municipalities on a collision course with the business community," she said. Last week, Fiacco proposed a $25 per vehicle surcharge as a way of generating $18 million a year for the province and $4 million for the City of Regina. Fiacco said just one cent per litre of fuel tax would generate $4 million to $5 million a year, which would go directly into improving the city's streets and roads. Braun-Pollon said survey respondents, which represent about 13 per cent of the CFIB's 5,200 small business members in the province, were 81 per cent opposed to granting new taxing powers for municipalities. "We do acknowledge the fiscal pressures the municipalities are facing," Braun-Pollon said, but added that municipal governments must find ways of stretching their tax dollars further. "Instead of adding another layer of taxation, municipalities should be looking at wages and benefits and lower those costs," she said. "We believe they haven't done their homework." She said the CFIB is polling 13 Saskatchewan city mayors to assess their views on new municipal taxes, with the results available in mid-January. Fiacco said he isn't advocating raising taxes or even inventing new ones. "I don't think anyone wants to see increased taxes. I'm one of those people. We should always be looking at (reducing) our expenses." But he said a number of groups, including the Federation of Canadian Municipalities (FCM), have been saying that municipal governments need to have more sources of revenue than property taxes. "Based on information provided by the Canada West Foundation and TD Bank, municipalities can no longer rely solely on the property tax base." Fiacco reiterated his position that 90 per
cent of taxes collected in Regina are received by the federal and provincial
governments, with the remaining 10 per cent allocated to local governments.
Of the remainder, the city's portion is less than half -- 4.5 per cent. Of
the five major cities on the Prairies, Regina is the most dependent on
property taxes, with nearly 60 per cent of total revenues from property
taxes, according to the city administration. |