MODL candidates in the upcoming MODL election are in general agreement that the municipality needs to reform the way it collects taxes to pay for local government. They disagree, however, about how tax reform should proceed.
Calls for municipal tax reform have arisen out of MODL’s reliance on property taxes to pay for municipal government, as lower-income homeowners are feeling the pressure of a higher cost of living. The living wage for southern Nova Scotia is estimated to be $25.20 in 2023, while the actual minimum wage remains $15.20.
MODL is also facing increasing costs of adapting to climate change and accommodating population growth. Given the legal limits for the municipality to take on more debt to finance its operations, will be forced at some point to either increase property taxes or reduce its budget.
Some residents of MODL have scrutinized budget items at council meetings in hope to reduce property taxes. However, persistent budget cuts over the past few decades in municipal governments have resulted in a Canada-wide infrastructure deficit.
This double-bind places municipalities in a position where they are going to need to find alternatives to property taxes to pay for growth and adaptation to future needs.
Enter two think tank reports.
The first report was published by the Federation of Canadian Municipalities (FCM). The report proposes a Municipal Growth Framework, which could include an immediate increase in federal and provincial transfers through the Canada Community Building Fund and the Municipal Growth Fund. It also calls for further federal and provincial transfers linked to the overall economic productivity in Canada, measured by its gross domestic product (GDP).
The second report published by the Canadian Centre for Policy Alternatives (CCPA), argues that municipalities in Nova Scotia should advocate for the ability to collect income and corporate taxes through the Canadian Revenue Agency (CRA). This would make funding for municipal government based on the ability to pay among residents, and would link funding to the overall wealth accumulated by higher-income individuals and corporations.
Incumbent mayoral candidate Carolyn Bolivar-Getson has sided with the FCM position stating, “I strongly support the efforts of the FCM towards the development and implementation of a Municipal Growth Framework supported by a modernized municipal funding structure.”
District 8 candidate Kacy DeLong and District 6 candidate Alison Smith, on the other hand, expressed support for exploring the CCPA report’s specific recommendations. Smith stated that, “The province’s back-tracking on the Coastal Protection Act is a prime example of how municipalities are being asked to do more with less. If our share of responsibilities are growing, our share of resources should too.” DeLong also stated that when she requested the MODL examine the options in the report, her “request was denied on the grounds that it did not align with current Council strategic priorities”.
District 9 candidate Ben Brooks did not have a specific preference, but stated that he is a “strong advocate for tax base expansion through support and development of small business in Nova Scotia.”
The FCM proposal championed by Mayor Bolivar-Getson would link the availability of municipal funding to the growth of the economy, which would pressure municipalities to promote the interests of large corporations. The CCPA proposal on the other hand—the one suggested by cuncilors DeLong and Smith—would connect municipal funding to the magnitude of revenues collected by wealthy individuals and corporations.
Nominations remain open until September 10 and eligible voters can cast their ballot on October 19.
Christy Kelly-Bisson, PhD, is a political scientist and garlic farmer in rural Lunenburg County
