News   May 01, 2024
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Do you support increasing the PST by 1% to give to municipalities?

Do you support increasing the PST by 1% to give to municipalities?

  • Yes

    Votes: 31 67.4%
  • No

    Votes: 15 32.6%

  • Total voters
    46
Cities are on their own

Toronto and other Ontario cities had that golden opportunity to make getting 1 per cent of the PST an issue on October 10, 2007.

That time has long sailed away and may never return.

Instead time, energy and opportunity was wasted on the 1 cent of the GST now campaign.

The only option left on the table is for cities like Toronto to raise their own taxes.

Mississauga City Council did just that today in addition to a 3.9% property tax hike in 2008 an additional 5 per cent Special Infrastructure Levy in 2008 to maintain Mississauga's infrastructure in good repair and preserve the quality of life for its citizens.

Louroz
 
One can assume that a sizeable portion of provincial revenues already go to municipalities. Would this additional one-percent be a tax raised for something specific - something that FutureMayor has alluded to?
 
As good of policy as it would be, McGunity would have to be an idiot to implement it. The cries of "Liar! Liar! Liar!" would make last month's election look like nothing.

I guess the alternative would be to create a 1% Municipal Sales Tax and give all Ontario municipalities the option of implementing it within their boundaries. It would be collected as part of the PST and, in turn, distributed back to the municipalities that it was collected in.
 
CDL's suggestion is obviously the best, and it's the only conceivable option. There's no way that McGuinty should be expected to commit political suicide by raising the PST, especially when a tax hike for the universally popular cause of health care caused such an eruption.

It would be more cumbersome than just handing over a 1% share, but leaving up to the municipalities is the only practical approach. It's also fairer. If the elected officials in, say, Waterloo don't feel the need for a municipal sales tax, there's no reason why they should levy one.
 
The municipalities should have the power to raise taxes (PST) if they want. I don't like shuffling money around - I prefer those that spend the tax money have to raise the tax money. In the US municipalities can have different sales taxes, and there are services that provide "tax tables" so that the correct tax is collected if a product is shipped into that area (at least that was the way it use to be). Don't know how it works now - because sometimes there is no tax added if you ship out of state (and that company does not have assets in that state). Don't know how it would be implemented here though -- same thing - out of province shipments tend not to have tax collected - so the provincial/federal government would have to put something in place for products that are shipped (something like a clearing agency for tax remitance etc).
 
Perhaps we can make it very complicated- so that the cities get their 1%, but administrative costs are 2%, so the cities, in the end, take a massive hit.
 
I guess the alternative would be to create a 1% Municipal Sales Tax and give all Ontario municipalities the option of implementing it within their boundaries. It would be collected as part of the PST and, in turn, distributed back to the municipalities that it was collected in.

Except that can be very problematic if you have different municiaplities adopting different rates. Just think of cross-border shopping at a totally different scale.

AoD
 
It's only a 1% difference. Contrary to what Mr. Harper may think, chopping 1% off the price of something doesn't tend to send consumers into a shopping tizzy.

Plus, isn't there a big difference in commercial property tax rates from municipality to municipality? I don't see many stores passing on the savings to their customers.
 

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