The move to capping at CPI may have represented a shift in the purpose of the program from addressing the tax burden of poor taxpayers to a “transparency in taxation” issue. [...] To analyze this issue more closely, the UNSM-AMA Cap Review Committee compared the residential tax rates of the 55 municipal units in 2009-10 to those in 2005/2006, the year the Assessment Cap Program came into effect. [...] As the tax rate rises, the dollar spread between the market value and the capped value in the high value homes becomes much larger than the spread on the lower value home. [...] As has been the case from the beginning of the Cap Program all property continues to be assessed using the market value standard provided by the Assessment Act. [...] Given the significant issues, in terms of the fairness, equity and transparency of the municipal property tax system, the conclusion is that the Cap Program should be eliminated in favor of a broader low income property tax relief system.
- Pages
- 32
- Published in
- Canada
