St. John's hikes business, home taxes
A divided St. John's city council passed a budget Monday evening that means higher taxes for every homeowner and business.
As expected, council dealt with a looming deficit by raising property and business taxes by raising its mill rate by 0.5. Council passed the budget 8-3.
"Your Worship, these tax increases announced tonight are being paid for on the backs of our taxpayers," said Coun. Bruce Tilley, who argued council would not have needed to hike taxes if it had not said no to particular development proposals.
"The Fortis complex — we actually threw it out the window," said Tilley, referring to Fortis Inc.'s plan to erect an office tower and overhaul an existing structure on Water Street.
Fortis withdrew the plan this spring, after considerable public outcry, before council could even decide on it. Tilley estimated the proposal would have meant $1.25 million in annual city revenues.
The change means that the owner of a house valued by the city at $200,000 will pay an extra $100 in taxes.
Deputy Mayor Shannie Duff urged taxpayers to consider what they're getting for their money.
"That is not a lot in terms of the recycling programs, the environmental programs, the increased snowclearing and services that we have been able to deliver to our citizens," Duff said.
Business groups object
Bradley George, provincial director of the Canadian Federation of Independent Business, said the hikes in commercial property and business taxes are a "double whammy" for companies that are already in a tough spot.
"Business owners already pay two and a half times as much as residents in this city," George said.
"They receive fewer services. They pay for garbage collection. And they have to contract out for recycling," said George, who questioned why the city has agreed to pay raises to city workers, knowing it would have to lead to higher taxes.
Derek Sullivan, chair of the St. John's Board of Trade, said the council needs to do more than increase taxes.
"Success for the city in the future lies not just in tackling that revenue — growing that revenue line," he said. "It lies in getting at those internal expenses and how services are delivered and looking at more creative ways to tackle that and get some cost reductions."
Sullivan suggested that the city could save money through public-private partnerships.