Quote:
Originally Posted by Wooster
I think it's not just about financial management, it is also about a property tax system that makes no sense as the primary revenue source for a city. It's regressive, and also non-inflationary.
|
That is easy to fix - you peg the tax base amount (the amount collected) used to calculate the mill rate to local CPI. Add an escalator that takes into account sheer property growth (measure the value in the current years market value assessment vs last and weed out the extra value change for properties that have had been renovated and or built) and boom, you're done.
With those two things only new initiatives (ie: whole new program areas) should ever require an increase in taxes. Should be able to deliver a paper 'tax cut' most years.
As for diverse funding base, sales taxes haven't worked out very well south of the border for cities, I would ask the province to allocate the tax points from personal income tax within city boundaries to fully fund MSI. In future years, when the amount flows up or down the city would just have to deal with it, and the province wouldn't be counting on that revenue for other things since it was set aside already.