Posted Jan 21, 2013, 7:10 PM
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New Brunswick Urbanite
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Join Date: Sep 2007
Location: Saint John, NB
Posts: 801
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What the article completely misses is a key imbalance in the collection of provincial property tax which runs along urban-suburban lines. The province collects property tax on commercial and non-owner-occupied property within municipalities, and both of these property types are concentrated in large, central cities. By in turn not levying a tax on owner-occupied residential properties, which make up nearly all the tax base of suburban bedroom communities (while being expensive to service with things such as ambulance coverage, school bus routes, etc), the collection system is even more skewed to over-tax our most urban and fiscally sustainable land uses while under-pricing sprawl. At the end of the day, if our cities end up getting choked by chronic underfunding, the province will have done more long-term harm than the good stemming from its redistributionary municipal funding model.
The author also conveniently focuses on Fredericton, with its obvious concentration of public sector employment. Much less of that argument is applicable to Saint John or Moncton.
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