Don't fret over this year's taxes. Worry about next year's.
Taxes need to go up this year. Nobody wants to hear that, but it’ s simply a matter of paying now or paying much more later.
It’ s not the 2016 tax notices that our municipality is currently working on that should frighten us ... it’ s what comes next. The economy isn’ t going to magically right itself in the next six months. Most financial forecasts call for the economic slump to continue - and worsen - through 2016.
We need to prepare this year for a continued rocky road downhill.
Many - especially industry leaders - will say they are already taxed enough. And a look at recent tax documents from the municipality show the lion’ s share of the County’ s bank account does come from big business. Industrial taxes from more than $3 billion (with a B) worth of industrial assessment in our municipality total more than $60 million. By comparison, every homeowner in and around the hamlets of Lac La Biche and Plamondon generate $1.2 million into the municipal coffers. Big business pays more than 50 times what the average homeowners contribute, but does that mean industrial taxpayers should get a break? If they get a five per cent reduction in taxes because times are tough, that means a loss of $3 million. How will that be made up? Boost residential taxes by 200 per cent? Most homeowners would probably argue that kind of an impact - especially when everyone, not just big oil companies, are hurting right now. Perhaps the municipality could spend less - build fewer roads, maintain less infrastructure. That is a more realistic option, but again, it will be the residents who will suffer with fewer amenities and poor infrastructure.
A tax hike across the board this year to offset what are sure to be reduced market assessments in the 2017 tax year is a tough choice for councillors to make. But it’ s one they are going to have to consider.
Ratepayers are all in this together. This isn’ t about resting the tax revenues on only the industrial properties in our region, it’ s about everyone taking a hit so we can forge through the tough times and continue once again to grow as a destination for industry, commerce and lifestyle.
