Mulmur takes tax woes to ministry
Mulmur officials had a chance to voice concerns about provincial tax incentive programs during a sit-down with members of the provincial government last week.
Mulmur council members and staff met with representatives from the Ministry of Finance during the Rural Ontario Municipal Association (ROMA) conference in Toronto to make a case for reestablishing rebates to rural municipalities impacted by the incentive programs.
“It’s not just Mulmur. It’s every municipality in the province,” said Mulmur Mayor Paul Mills. “The point we have to get across is that the province is offering these tax incentives but we’re paying for them.”
He said the Mulmur delegation spoke to the Managed Forest Tax Incentive Program, the Conservation Land Tax Incentive Program and the Farm Property Class Tax Rate Program. Mills said the latter has the largest impact on Mulmur’s tax revenue.
“We are not criticizing the programs but at one time we were reimbursed by the province for the farm tax. When Premier Harris got in, he did away with that and we are not reimbursed anymore.”
Mulmur is asking that the province consider removing managed forest cap rates to allow properties to be accurately valued prior to providing incentives, better oversight and enforcement of the programs and that the province provide a grant equal to the actual loss experienced by rural municipalities.
The loss in tax revenue for 2016, is calculated at almost $1 million.
“I don’t know how many exactly are on these tax incentive programs but it’s the rest of ratepayers that are having to pay for it and make up that $1 million loss,” said Mills. “If [the province] is offering these [programs], they should be paying for it… We only bring in $3.5 million a year in taxes and we are losing $1 million through these programs. They look like the good guy offering the programs but it’s actually the local municipality having to pay the bill.”
He said some residents who receive the tax cut assume the municipality is getting reimbursed so the municipality is hoping to raise awareness in the community.
Mills said this initiative came out of research around the proposed expansion of the Niagara Escarpment Plan Area, which was unanimously opposed by the Niagara Escarpment Commission. Additions of land could have resulted in a further loss of $800,000, under the Conservation Land Tax Incentive Program.
Mulmur is looking for support from other municipalities. Mills says they are getting some support and their efforts have been well received.
This year, ROMA hosted its first standalone conference in a number of years, “to shine a spotlight on the pressing challenges and emerging opportunities facing Ontario’s rural communities.” More than 900 participants from rural municipalities and other organizations participated in the conference from Jan. 29-31 at Toronto’s Sheraton Centre Toronto Hotel.
