HomeMy WebLinkAboutThe Goderich Signal-Star, 1979-10-25, Page 24PAGE 6A --GODERICH SIGNAL -STAR, THURSDAY, OCTOBER 25, 1979
A&P reserves the tight to limit quantities to normal family requirements)
What
happens
after 1980
BY
JACK RIDDELL
M.P.P.
There has been a great
deal of concern, par-
ticularly in rural
municipalities, about the
new equalization factors
which the Minister of
Revenue announced last
July. The purpose of the
new equalization factors
is to provide an updated
and standard basis for
calculating certain
grants and municipal
cost sharing
arrangements.
These new factors
replaced those which
were frozen in 1970.
Although these factors
reflect the changes which
have taken place in
property values over the
past decade, they do not
represent a change in the
government's taxation
policy. However, if the
new factors were used
without limit, there would
be large and in some
cases unacceptable shifts
in the burden of property
taxation among
municipalities and
among ratepayers.
Without offsetting
government action, the
use of the new factors
would create s.ubstantial
increases in taxation in a
large number of
municipalities. The
government proposes to
• alleviate this impact by
providing special funding
to municipalities in 1980.
In addition, the govern-
ment is instituting a limit
on the assessment shifts
which can take place in
1980 as a result of the new
factors.
Basically, for
municipal apportionment:
purposes, assessment
'shifts caused by the new
factors of up to five
percent will"be allowed to
take 'place. Beyond that
level shifts due to the new
factors will be prevented.
For general municipal
purposes, shifts in levies
caused by the new factors
will be limited to five
percent as well.
The new equalized
" assessment will also be
used for grant purposes.
However, for those
municipalities whose
equalized assessment has
been increased relative to
the provincial average by
the new factors (and
thus, whose level of grant
support would normally
decrease), the govern-
ment reiterates its
commitment to provide
at least as much in grant
payments in 1980 as they
would have received
under the use of the old
factors.
F o r other
municipalities, the new
equalized assessment
will be used for the
resource equalization.
grant except in those
cases _where there . is a
relative reduction in
equalized assessment of
more than 10 percent. In ..
these cases, the relative
reduction would be
limited to 10 percent and
the resource equalization,
grant would be paid on
that basis.
In addition, the"
government has put 'an
overall limit of $10 per'
capita on the amount of
increase over their 1979
resource' equalization
grant which.' .' •.any
municipality can receive.
The government • has
also decided to introduce
greater uniformity in
respect of the split
millrate. The split
millrate is the measure
by which residential and
farm taxpayers pay a
lower tax rate than is
paid on other properties.
At present this split is
at 15percent for
municipal purposes.
However, the split is not
now recognized for
purposes of the resource
equalization grant.
Starting in 1980, the
split millrate will be
standardized at 15 per-
cent for that grant as well
as most other municipal
purposes. This measure
by itself will further
cushion residential
taxpayers and modify the
adverse shift to
residential and farming
communities which is
Turn to page 7A e
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