News Release

Tax Reform Report Presented to Council Tonight

(March 18, 2008) - Halifax Regional Municipality's Tax Reform Committee will present its findings to Regional Council tonight. The findings include the foundations and principles of a possible new tax system based on municipal services provided and ability to pay. The Committee is proposing community consultations in the Spring of 2008 to gather further public feedback.

The Committee believes the most critical part of tax reform are the Principles of any new system. It has identified seven key principles that should be reflected including equity, economic competitiveness, economic efficiency, respect for other governments, simplicity, stability, and transparency and accountability.

The Committee believes that the current municipal property tax system, which is based on property values, needs to change. "At one time property values linked closely to income levels, but that's no longer the case", says Committee Vice-Chair Mark Gilbert. "Assessed home values do not relate to municipal services. Trying to maintain equity between various types of taxpayers is currently quite difficult."

The following is included for public consultation under the Committee's Tax Reform proposal:

• Taxes would be based on a combination of services and ability to pay. Other than the current area rates levied for Provincial services, property assessment would no longer be used. The tax per home would now be based on the services available to that home and the surrounding community.
• There would be nine municipal tax rates, each levied as a flat rate per home. These services include: hydrants, solid waste, local roads, local recreation facilities, local transit, local sidewalks, regional transit, regional roads and a regional tax rate (for a number of widely available services such as police, fire and libraries).
• Apartments and condos would be taxed at a reduced rate.
• There would be increased support for low income families. A family with less than $18,000 would receive up to $1,000 off its municipal tax bill. In addition, there would be $100 off of property taxes for each child in the family. All such benefits would be phased out when a family income of $34,000 is reached.

For a copy of the report, please go to re information on Council's agenda for tonight visit http://www.halifax.ca/council/agendasc/documents/080318ca1131.pdf. For more information on the Tax Reform Committee and its report, or to provide feedback, please visit www.halifax.ca/taxreform e-mail taxreform@halifax.ca or call 490-4886.

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For more information, please contact:

Mark Gilbert
Vice-Chair, Tax Reform Committee
424-3943

Bruce Fisher

Manager, Fiscal and Tax Policy

490-4493