WHEREAS federal and provincial governments benefit from 92 of all tax revenue in Canada while increasingly relying on local government to deliver the vast majority of community-based services with only 8 of available tax revenue; AND WHEREAS the provincial government has commissioned an Expert Panel on Business Taxation to review tax policies in British Columbia, and among its many tax options the provincial government charges Property Transfer Tax on all transfers, including those made by local government agencies: THEREFORE BE IT RESOLVED that UBCM petition the provincial government to grant an equitable share of BC Property Transfer Tax revenues to local governments, both to diversify their revenue sources and support the increasing levels of community-based services, aging infrastructure maintenance and replacement they are required to provide.
Ministry of Finance After the onset of the world financial crisis in 2008, provincial revenues deteriorated significantly and created a significant operating deficit after several years of budget surpluses. In Budget 2009 September Update, the government presented a 5-year plan to return to a balanced budget by 201314. We are still following this plan, and it has meant making very difficult fiscal decisions. By restraining spending as we have, we are managing to keep income taxes among the lowest in Canada and have preserved our AAA credit rating, allowing us to pay lower interest rates on the funds we do borrow, which in turn help to hold the line on taxation. In Budget 2012, we projected a very modest 154 million surplus for 201314. On a budget of over 44 billion annually, this is a thin margin. With the current economic situation in Europe and elsewhere, achieving this target continues to be a challenge. As a result, at this time government is not considering any new revenue-sharing programs, but certainly recognizes the fiscal issues being faced by local governments. Therefore we continue to encourage you to work with the Ministry of Community, Sport and Cultural Development and other ministries as appropriate to arrive at creative solutions to the infrastructure and related issues that you are facing. Please note however, there is an exemption from property transfer tax for transfers to municipalities and regional districts.