Does it ever seem to you that taxes assessed on the "market value" of your home or business property are very strange sources of stable municipal revenue? This system of "property tax revenue" was instituted by the government of Alberta several years ago. Your property taxes collected under this system are not used only for municipal facilities and services, but also for school facilities and services.
Many citizens don't really understand "market value", and I would like to ensure that people who are required to pay property taxes do understand the terminology and reason for property taxes and how they are assessed and levied. This is an important aspect of a new taxation policy for Cochrane. It is not good enough just to provide citizens with a pie chart and a questionnaire at budget time or just before the tax rate is set: the corporation needs to provide educational opportunities for citizens to engage in dialogue and learn more about taxation. Education of citizens is just one, but a crucial, aspect of the taxation policy I propose.
The market value of residential and business property rises and falls over time. Canadians, Albertans and Cochranites are all in a "real estate bubble" wherein market value of our properties may fall in the near future if our economy cannot sustain the high property values we currently enjoy. If our total market value assessment falls in Cochrane, then the tax rate that is applied against the total market value assessment will need to increase to ensure that there are sufficient funds to run the municipal corporation and provide you with all the services and facilities you want and need to sustain your quality of life. The business community is also affected by fluctuating market value assessments and it becomes difficult to predict what tax increases will affect business profit margins each year.
The annual market value assessment is based on what the market value of your property was in June of the preceding year. This year, in June, the property values were relatively stable. However, next June when the new tax rate is applied to that market value assessment, property values may have fallen. The appraised market value is therefore never a true indication of your property's market value in the year it is applied against the tax rate-it reflects the previous year's value. People are confused by this.
I often wonder if Cochrane has explored the many mechanisms available and variety of economic instruments that could be used to ensure stable revenues to achieve council objectives. While user fees have increased substantially lately, few people realize that there have been increases, and fewer still understand why user fees are applied at all. What I hear going door to door is that people want less taxes and less utility rate increases-not more. Mostly, they want to understand why some people pay more taxes than others. People want to understand the difference between a base rate on their water bills and a consumption rate.
Tax incentives are also a good mechanism to achieve Council objectives. Council needs to plan for and explore tax incentives for encouraging citizens to engage in many activities and contribute to development of community programs and facilities. For example, the Cochrane Sustainability Plan provides that "water is our most precious resource" and demonstrates pathways to realize this lofty goal. Council could encourage respectful use of water through tax incentives-we do not need to have sky-rocketing water bills to achieve this stated objective. For example, naturescaping is a perfectly fine alternative to cookie -cutter lawns and gardens that use thirsty ornamentals. If the municiplaity encouraged naturescaping in all new developments, as per the Town Land Use Bylaw, then indigenous plants and materials would be used that require little or no irrigation. As of today, the Town does not even implement its own "landscaping" provisions in the land use bylaw.
I will be coming back to taxation policy over the course of the campaign as people ask me questions and direct my attention to their concerns about taxes. Stay with me over time, and I know you will find taxation policy a needed and innovative concept that might improve how the municipality engages citizens and does better business. Perhaps the most important aspect of the taxation policy I propose is that it be "deliberate", where everything is planned and determined throught collaboration and open public debate and dialogue with interested citizens.
One thing is sure, I will be opposed to any suggestion or agenda item brought forward where councillors or the mayor want a salary increase during the next three year term of office. There is absolutely no justification for a group of candidates to ask you to vote for them, based on what the municipality can afford to provide for councillor services, and then as soon as elected, ask for more money to do the job. The current salaries and job descriptions are posted on the Town's website-those are the salaries that candidates can expect to receive for the services they provide to you as members of council, and if it seems insufficient, then they simply should not apply for the job! Enough is enough!
No comments:
Post a Comment