Comment 111669

By CharlesBall (registered) | Posted May 19, 2015 at 10:38:29 in reply to Comment 111664

This is an interesting question.

The Province sets the method by which municipal tax rates are set. It is a multiple of the value of the property. So when the assessed value of the property declines, the tax declines.

The City controls demolition permits, but must adhere to the law in granting the permit. If the owner complies with the law, the City must issue the permit.

So, they are not being rewarded per se. They are using the current rules to their advantage.

It has long been argued that the way property is taxed is unfair and discourages development. Paint your house - your taxes go up. Put on an addition or pave your driveway, your taxes go up.

Keep in mind that municipal taxes are intended to be raised for municipal purposes. There are lots of alternatives to raise money for the services that are used, poll taxes, car use taxes, licenses etc. Most of those are user pay and are considered to be "regressive."

Maybe there should be some reduction in the linkage between property values and taxes. With some standard simple flat tax - one that would not be reduced when the value of the property decreases and applies simply because the land exists in the City. And then maybe some use taxes - i.e. a vacant land tax, car lot tax or a temporary relief followed by mandatory return to the original tax if development does not occur within a specific period of time. It would require thoughtfulness and extra cost in policing the tax.

No one believes more firmly than Comrade Napoleon that all animals are equal. He would be only too happy to let you make your decisions for yourselves. But sometimes you might make the wrong decisions, comrades, and then where should we be? George Orwell

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