WHEREAS the cost of providing Fire Services has increased substantially over the past few years with the insurance industry receiving benefit from Fire Services in the form of decreased risk of property damage by fire; AND WHEREAS the provincial government collects 4 premium annually on all property insurance policies issued under the Insurance Premium Tax Act and pays it into the Consolidated Revenue Fund: THEREFORE BE IT RESOLVED that the 4 Insurance Premium Tax that was originally imposed to cover the costs of administering the Fire Services Act, less costs directly incurred by the Office of the Fire Commissioner, be redirected to offset the costs of providing Fire Services, including the mandatory fire inspections and investigations imposed by the provincial government on local governments.
Ministry of Finance The fire insurance premium tax imposed under the Fire Services Act was repealed in Budget 98. The tax revenue generated from the 4.4 per cent tax paid by insurance companies on property insurance premiums is intended to be a general revenue source and it is the provincial governments view that this is the appropriate use of the revenue. Any proposed transfer of tax revenue to local governments must be evaluated in the context of a provincial balanced budget and the need to fund critical provincial programs.