Friday, February 10, 2012

Local Gov'ts Revenue Sources Review

This afternoon - UBCM (Union of BC Municipalities) announced a couple of issues involving BC's Local Governments (Municipal Councils/Regional District Boards)

1) Previously announced Expert Review Panel on Business Taxation - see the Jan 10th, 2012 press release from the Government of BC here

2) Review of all Local Government Revenue Sources:

From the UBCM Member Release:

The Ministry of Community, Sport and Cultural Development has advised UBCM that, in order to supplement the work of the Expert Panel Review of Business Taxation, and to fully meet the Premier’s commitment to review the municipal tax formula, the Ministry is
embarking on a Local Government Revenue Sources Review.

The terms of reference for that review are not yet complete, but UBCM has been provided with some preliminary briefing material.

At this point, it appears that the review will encompass both municipal and regional district revenues from all sources, including property and other taxes, fees, grants and other transfers. The review is expected to determine trends over time and to consider
whether grants are meeting the needs of the provincial government.

A literature review and some form of inter-jurisdictional analysis are also expected, as is an analysis of the municipal tax policy objectives set out in municipal financial plans in BC.

The review is expected to be completed by July 31, 2012 and may provide context and background to recommendations of the Expert Panel and/or further policy change.

As per the above - I'm glad to see that Victoria recognizing, finally!!, that current revenue sources for local governments are simply insufficient and that they (local government) can not continue to heavily rely on property tax revenue for the various things that local governments are asked to do by their local residents' or ordered to do by Victoria/Ottawa and flexible revenue options for them would be a welcome sight

On these reviews, current UBCM President Heath Slee says:

In terms of next steps, UBCM will contact the Expert Panel to express interest in providing a presentation. I have also written to Minister Chong to say that UBCM would be pleased to work collaboratively on the Revenue Sources Review

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