The township would receive an additional $660,000 per year if a proposal was implemented to raise funds for municipal infrastructure through a provincial sales tax increase.
At the Association of Municipalities of Ontario (AMO) convention in Ottawa on Aug. 14, AMO president Lynn Dollin called for a one per cent Harmonized Sales Tax (HST) increase devoted solely to local infrastructure such as roads, bridges and transit.
AMO estimates municipal governments face an annual shortfall of about $4.9 billion dollars for the next 10 years to maintain current services and address the infrastructure gap.
On Aug. 22 councillor Marlene Ottens said none of Ontario’s three major political party leaders, all of whom were present at the conference, supported the idea.
However, she suggested Mapleton council should determine how the tax increase would affect the township in case it was asked to support the idea by AMO or other municipalities.
At the Sept. 12 meeting, Ottens reported she had checked with AMO officials who indicated municipalities’ share of the new tax would be determined on a per household basis, with Mapleton benefiting by about $660,000 annually.
“As I said, none of the party leaders were in favour of this, but maybe we’ll be getting correspondence from other municipalities lobbying for it. So now we know what we’d be lobbying for,” said Ottens.
“It’s a moot point until they agree to it. But it’s a relevant point because somebody might start a ball rolling to push for this.”
“Where does our council stand on this?” asked Mayor Neil Driscoll.
“We’ve seen the all the negative press on it,” he noted, but, “that’s a pretty significant help to our budget.”
Driscoll asked councillors if they felt it would be worthwhile to send out letters of support for the idea.
“Honestly, it makes everybody pay for what we need to provide here,” Driscoll said.
“I think it’s ludicrous,” said councillor Michael Martin. “I never thought I’d hear myself say it, but the provincial parties might actually have it right.
“I am surprised this hasn’t come before the government sooner than now because, honestly … the easiest thing in the world to do is just keep raising taxes, right, and say you’re going to direct it somewhere.
“But it’s much like the other revenue streams we see from the province; they always dry up eventually and the same thing would happen to this and we’re going to be stuck with a 14 per cent (HST).”
Martin added, “Honestly, I think this would be – what’s a nice word? – detrimental to everybody in the long run.”
Ottens pointed out, “Apparently they do it in a number of other countries successfully.”
Driscoll asked if the proposal was to raise the tax permanently or for a specific time frame.
“I suspect AMO would love to have it forever,” said Ottens.
Councillor Dennis Craven said, “Without it, our infrastructure’s going to go downhill. Without supporting [the provincial tax increase], can we ask our ratepayers to come up more money in the form of a tax increase?”
“It would be a very significant increase to raise that amount of dollars,” noted Driscoll.
“Exactly,” said Craven, who suggested council should study the issue further.
