EDMONTON: The Canadian Taxpayers Federation (CTF) is challenging municipal politicians to hold referendums on proposed new municipal taxes in light of a recent commitment made by Premier Ed Stelmach. The premier's office committed yesterday to give municipalities new taxing powers subject to approval in local referendums.
"This is a big win for Alberta mayors, now the only thing standing in the way of these new taxes is permission from taxpayers," said CTF-Alberta director Scott Hennig. "It's time to put up or shut up. If Calgary Mayor Bronconnier, Edmonton Mayor Mandel, and the other local politicians who have been calling for these new taxing powers truly believe this is what their residents want, they should have absolutely no problem putting it to a formal vote this October."
This new Alberta government policy regarding civic taxing authority represents a historical shift in provincial/municipal relations. Previously, municipalities were forced to either increase property taxes or request additional funding from the Alberta government if they wanted more revenue. Now municipal politicians will be able to introduce their own new taxes provided their voters approve it first.
"Requiring a vote on new taxing powers is a win-win situation for both politicians and taxpayers," concluded Hennig. "The politicians get an opportunity to levy new taxes and taxpayers get a say."
Last month the CTF released calculations of what the average Alberta family could expect to pay in new taxes if voters approve four new taxes proposed by the Minister's Council on Municipal Sustainability.
New Tax | Tax Rate | Revenue |
Amusement Tax (ticket tax) | 10% of the ticket price | $47,948,164 |
Tourism Tax (hotel tax) | 4% of the room rate | $65,000,000 |
Property Transfer Tax | 1% of the sale price | $400,000,000 |
Vehicle Registration Tax | $75 per vehicle | $293,187,450 |
Total: $806,135,614 | ||
Yearly tax bill for an Alberta family of four: $911.25 |
Detailed tax calculations and tax rate assumptions can be found on-line: New Taxes: Calculations and Assumptions or by contacting the Alberta office at 1-800-661-0187.
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