See Charter Think Tax: Coalition Warns of New Municipal Taxing Powers

By: Paige MacPherson, Amber Ruddy,  Stephanie Kusie

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Look, up in the sky! It’s a tool, it’s a levy, it’s a charter – no, it’s a tax! And it’s about to empty pockets near you.

The mayors of Edmonton and Calgary have been busy pushing for city charters – agreements that could give their councils new taxing powers.

Over the last year, Albertans have been served a heaping pile of new taxes and fees. There’s no doubt times are tough. But what about the taxes we don’t see coming? If we don’t look up, a whopping tax burden might fall right into our wallets before we know it.

Take, for example, a city sales tax.

Finance Minister Joe Ceci assured us that, while more “revenue levers” (read: tax hikes) are on the table, a provincial sales tax is not. But what about a city sales tax?

It may sound unbelievable – a sales tax, of any form, in Alberta? In fact, a city sales tax is just one of another heaping pile of taxes that could become a possibility very soon in the province.

Property taxes are already slated to rise in Calgary and likely Edmonton as well. On top of that, Calgary city council has been looking at a number of ways they could further hike the tax bill to fund their transit and infrastructure plans. A city sales tax is one way, many other taxes are being considered.

City residents should not be expected to accept the usual dog-and-pony show, with half-hearted consultation and a bow wrapped around it. Taxpayers and businesses deserve real consultation in the big cities. Further tax increases have real impacts on peoples’ lives. The stakes are simply too high.

Yes, cities require infrastructure, and it’s a worthy use of public cash. But are ever-greater tax increases on already-squeezed residents the best way to fund it?

Municipal operating spending is growing at an unsustainable pace across Alberta. The Alberta Municipal Spending Watch report released by the Canadian Federation of Independent Business in September found that Calgary and Edmonton have been growing operating costs more than three times faster than what is sustainable over the last 10 years.

Unlike premiers before her, Premier Notley has yet to rule out new city tax powers or tell the cities to first let the people have their say.

Though the NDP platform committed to working with the mayors on city charters and giving cities “the tools to build the services their residents expect,” the provincial government hasn’t been clear on where they stand. When asked if his government will give Alberta’s big cities new taxing powers, Municipal Affairs Minister Deron Bilous was unable to say yes or no.

It’s clear these politicians are meeting to discuss potential new tax powers, but taxpayers and businesses don’t have a seat at the table. That needs to change.

In August, the Canadian Taxpayers Federation re-launched a petition demanding Premier Notley require citywide referendums before any new tax powers are given to big city mayors.

In a recent poll conducted by Pantheon Research for Common Sense Calgary, 48.3% of Calgarians indicated that they believe a referendum should be held before any new tax powers be granted to municipalities in Alberta. Favouring a referendum was the most strongly supported response.

Governments use many words to describe taxes. “Tax” just doesn’t sound very warm and fuzzy. Call it a levy, a tool, a revenue lever, a city charter. Whatever you call it, if it looks like a tax and quacks like a tax, it’s a tax.

When it comes to a city sales tax or any other new city taxing powers, don’t let it hit you without your consent. Albertans should be ready to demand that their voices be heard.

‘See Charter, Think Tax’ is an Alberta-based coalition launched to demand taxpayers and businesses have their say in any new city tax powers. The coalition is comprised of the Canadian Taxpayers Federation, the Canadian Federation of Independent Business and Common Sense Calgary. 

This oped was originally published in the Calgary Sun and Edmonton Sun on October 9, 2015.