When candidates for the Fort Frances Municipal Council spoke last Wednesday at the Seniors’ Centre, all were adamant that they would closely watch the finances of the town and would do their utmost to control tax increases.
It is a noble goal. They already understand that the province has agreed to an 11 per cent increase in OPP policing costs over which they have no control. DSSAB and the Northwestern Health Unit are both independent bodies, and they too can ask for funding increases greater than the cost of living. Council does not have control over all their expenses.
Council would need the province of Ontario to pay for all policing costs, health unit costs and DSSAB costs. The province is unlikely to be ready to cover all those expenses. Senior governments are great at sleight of hand in their dealings with the public in terms of taxation.
Just take, for instance, the sleight of hand that former Prime Minister Stephen Harper performed in reducing the HST by one per cent. That was offset by an increase in income taxes. Now everyone is calling on the federal government to reduce income taxes to put more money in everyone’s pockets. The solution is to follow Sweden’s increase in consumption taxes by doubling the federal GST portion of the HST to 10 per cent.
Everyone would cheer the reduction in taxes from their paycheques, forgetting that they were paying more for services and products they require. In the end, there would not be a net gain in taxes being paid. The only difference would be which pocket was picked last by the government.
The province could also play the game by agreeing to pay all costs for policing and social services across the district. We don’t know what the offset would be. It could be a reduction in funding for streets and highways in our communities.
The province, in the midst of the COVID crisis, ordered the nonprofit corporation (MPAC) to pause reassessment of properties across Ontario. Today that poses a big problem for both municipal and provincial governments. Over the last six years, many property values have dramatically increased, but the taxes are paid on old market values.
The province has given no indication of when it will begin reassessment again. The province is consulting on the issue.
In reassessment, in neighbourhoods that have seen decreases in property values, those homeowners will be upset that they have been overpaying on municipal taxes.
Similarly, in those neighbourhoods where property values have risen dramatically, the new assessment will have many homeowners facing skyrocketing higher taxes.
Reassessment has traditionally occurred every four years. When Fort Frances and the district are reassessed for taxes, the overall revenue for the town will not change, but there will be winners and losers.
