HomeMy WebLinkAboutThe Huron Expositor, 1990-09-12, Page 13•
Lot levies disliked
BY MONA IRWIN
Legislation pied last w UUCI is
gds being carefully atruunlzed by
boards of education acxotis the
province.
TMs *Wawa, known as the
Develop soot Charges Act or u Bill
20, pro schuol boards the right to
enact bylaws for 'lot levies' on new
subdivisions.
"For imample, tilt Huron County
Board of Education (HCBE) could
say 'OK, we want 'X' number of
dollars from each new subdivision
to be used towards schcwls," said
Bob Allan, director of education far
the county. The necessary bylaws,
which Include a municipal
development bylaw and an
educational development bylaw,
would then be passed.
Part of the reason for school
boards' hesitation in taking
advantage of the bill may be the
reaction of the Ontario Home
Builders' Association (OHBA),
which has promised to launch a
court challenge as soon as a board
of education attempts to put the
legislation into operation. Copies of
the OHBA's letters to school board
officials and Ontario Premier David
Peterson were included in the
agenda for the HCBE's meeting
held last Tuesday (Sept. 4).
The Development Charges Act
allows municipalities and schools
boards to either work together or
independently in putting the lot
levies in place, said Allan. Money
from the lot levies can be used only
for growth and expansion, not for
renovations or upgrading.
MONEY SHARED
"However, the public school
board and separate school board (in
a municipality) can't set up two
separate lot levies," he said. "It's
expected that both will work in
concert." Also, monies collected
from lot levies cannot be held only
for one school board, but must be
shared between public and separate
boards as the need arises.
John Mansfield, president of the
OHBA, emphasized that the
challenge would not be a lawsuit.
"We're not suing anybody, not
the Ontario government and
certainly not any municipality,"
Mansfield said in a telephone
interview. "It would just be an
application to the courts to have
Bill 20 deemed unconstitutional."
Legal advisors suggested the
OHBA wait for a board of
education to put the necessary
educational levy bylaws into place
before launching the challenge
because "we'd be going to the
courts saying 'This (bill) doesn't
work, and the counter argument
would be 'Well, how do you know
it doesn't work?" said Mansfield.
SEVERAL REASONS
The OHBA has several reasons
for opposing the bill, Mansfield
said. Among them are:
"But d1erT's DO pruvi310n 10 do
this under die
��Development Charges
Act." Mansfield said.
• Because the lot levies wiU only be
unposed on now dwellings, some
people in a neighborhood may be
taxed whip others will nut be,
Mansfield said. This is unlike
provincial school taxes, which are
levied against all residents
according to the cilli rate.
"Let's say you're raring, and
you want to trove to Goderich and
buy a (newly -built) condo on the
lake," he said. "You'd have to pay
a let levy, even though you have
little or uul
o urnuon ofutilizing the
school." On the other hand, if a
family with children buys ar rents a
house or aparunent in an older
building, they will be exempt from
the lot levy because the building
isn't a new one.
He added that the let levy would
also affect the rent on new
apartment buildings.
MARKET AFFECTED
There is also no doubt that lex
levies would affect the housing
market, said Mansfield.
"Economists will tell you that
each time you have a significant
increase in price, be it the result of
a tax or whatever, it will have a
significant effect on the market," he
said. "And right now the market is
extremely price -sensitive. Lot levies
won't put the industry into a
tailspin, but they will affect people
wanting to buy homes, especially
first-time buyers."
Allan said he could not comment
on the OHBA's arguments at this
time.
"Obviously those are the points
they're prepared to put before the
court, and the government Will put
its argument forward," he said. "1
don't want to play judge without
hearing both sides."
'tThe larger growth areas, such as
Mississauga, are waiting with baited
breath so they can get enough
funding to provide schools." But
"all the wrinkles" weren't out of the
legislation until recently.
"The bill called for certain
regulations to be made and forms to
be developed. The regulations are
now in place and the Last of the
forms was produced and approved
about a month ago," Allan said.
• It constitutes indirect taxation
because the levy is actually paid by
the builder, and "like the (cost of)
bricks and plywood, it becomes
included in the price of the house,"
Mansfield said, and indirect taxation
is contrary to Sections 91-92 of the
Constitution Act.
"Only the federal government has
the right to impose indirect taxes,"
he said. "Provinces and
municipalities can only impose
direct taxes."
• It contravenes denominational
school rights, which are also
protected by the Constitution Act,
because every taxpayer in Canada
has the right to direct his or her
school taxes to support either the
public or separate school board.
THE HURON EXPOSITOR, SEPTEMBER 12 1990 3
MORE CAUTIOUS
The HCBE has become "that
much more cautious" because of the
possibility of a court challenge, he
added.
"I brought a report before the
board a few months ago, and they
want me to report back again in
another few months," he said.
Bill 20 was the province's attempt
to make up for its own cutback in
educational funding, because it
would allow school boards to
supplement the lower provincial
funding, Allan said.
"Huron County used to get 70 per
cent funding for a new school. Now
we get 60 per cent." That may not
sound like a large drop, but "let's
say the board needs a new school
or an expansion on a school. First
we have to apply for the right to
build, and that's not an easy
process in itself. Then, if we do get
approval, we'll get it at the lower
percentage rate."
So if the amount needed is $1
million, the cut in funding means
the HCBE would only get $600,000
instead of $700,000. It would have
to raise $100,000 more than under
the previous funding arrangement,
said Allan.
Mansfield added that the OHBA
was pleased with the sweeping
victory of the New Democratic
Party in the recent provincial
election, because "they've indicated
that they don't regard lot levies as
the best way to finance education,"
he said.
24 4-H PROJECTS MASTERED - Nick Geleynse of the Clinton
OMAF office presents Lorne Glanville of Winthrop with a limited
edition portrait by Canadian artist Peter Ertil Syndek. Lorne
recently completed her 24th 4-H project, her last club being the
wildlife and environment project. Lorrie also spent a day at the
Hullett Wildlife Conservation Area, helping to de -beak pheasants,
and narrated a slide presentation on the procedure at 4-H
Achievement Night. Submitted photo
Tory faithfuls were in Seaforth on election night with candidate
Ken Campbell From left, Don Alton of Lucknow, Ken Campbell
and Don Martin of Ethel, consoled each other on the Conservative
less. (Shelley McPhee Haist photo)
PITCH -IN
AND
RECYCLE!
The Sept. 16
ART
SHOW
at the S.D.H.S. has been
cancelled due to cir-
cumstances beyond our
control.
We wish to apologize for
any inconvenience this
may cause.
Seaforth High School
Students Council
Veal's Meat Market
and Abattoir �,
Would like to treat
our valued
customer
to a sausage
and pancake breakfast
This Saturday
Sept. 15th
8 a.m. - 12 noon
The Veal family thanks you
tor your suppon over the
past 10 years We have
certainly enjoyed serving
you and look forward to
continuing the tradition tor
many more years
Coffee and juice served
with the meal
Please come and enjoy
some tun Picnic tables
provided
Ross and Pat Veal
Mike and Cathy Veai
(Weather Permitting)
It:
Freezer Specials
Side 68of
Beef b.
Loin �09
of
Beef lb.
Hind
of
Beef
Ib.
Whole Co
or Half
Pig9111;Ib.
Fronts
of
Beef
49
Ib.
Whole 95
Pork
Loin lb.
\7EAISS
XU1Y MEATS
Hwy. 83 - 3 1/2 miles east of Exeter Phone 235-1123
Vanastra Recreation Centre
R.R. 45 CLINTON, ONTARIO NOM 1L0
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