New Ideas on Municipal Taxation in HRM
Halifax Regional Municipality (HRM) is re-examining the municipal property tax system. In late 2006, a new subcommittee of Regional Council – the Tax Reform Committee (TRC) – was appointed to lead the project. Since then, the TRC has been working hard on a re-design of the entire tax system and has developed a significant body of research to support its work.
In May 2007, the TRC held a number of public consultations to ask citizens what they would like a new tax system to look like. The Committee then created a Mission Statement and a Draft Tax Model for discussion. This is a service-based tax system but it also has additional assistance for low income individuals. In the spring of 2008, the TRC held 13 Open House information sessions to introduce what a more service-based municipal tax model might look like. Based on what it has heard the TRC is now reviewing the results of the public consultations and how the Draft Tax Model could be improved. It is preparing a final report with recommendations and an implementation plan for Regional Council. That report is expected in the Spring of 2009.
In the meantime, Regional Council held a debate on property taxation and the transit system. It has accepted in principle a new approach to taxing for transit. Under this approach Metro Link, Rural Express Transit and the Ferry system would be largely paid for by an area rate on dwelling units in the Urban Settlement and the Rural Commuter Shed areas. Local Transit routes would be funded by a single area rate on dwelling units within walking distance of transit service. Final tax rates and service levels are to be established as part of the 2009-2010 budget process.
Information on the Tax Reform project, the TRC, their discussions, as well as up-coming meetings and agendas, may be found at the Tax Reform website: www.halifax.ca/taxreform. Meetings are open to the public and public views and suggestions can be emailed to taxreform[at]halifax.ca or telephone 490-4886.
For more information on HRM's Budget please visit www.halifax.ca/budget

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