The way property taxes are collected in some towns across the province will soon be changing.
Government announced the details of the new Towns and Local Service Districts Act yesterday. The new legislation will replace the Municipalities Act.
The new act will eliminate the use of the poll tax, which Municipal and Provincial Affairs Minister John Haggie says is still used in 48 towns across the province.
Haggie describes the poll tax as “regressive” because everyone is required to pay the same regardless of means or income.
(File photo.)
He says Newfoundland and Labrador is the last province in the country to use a poll tax. Now, he explains, towns can either use a mil rate, or a base rate plus a much smaller mil rate.
Rules around business taxes are also changing.
Haggie says business tax will be optional. Where it is imposed, he says towns can choose how much they tax different classes of businesses, opening the door for incentives to bring businesses in.
If passed, the new Act will help guide the modernization of legislation governing the cities of St. John’s, Mount Pearl and Corner Brook.
