HomeMy WebLinkAboutTR-40-81 Memorandum
TO: Chairman & Members of the Finance & Administration Committee
FROM: Klaas Degroot, C.G.A. , Treasurer
DATE: June 10, 1981
SUBJECT: Provincial Budget
ITEM: TR-40-81
Recommendation:
"Receive for information"
Report:
The Province of Ontario budget released on May 19th, 1981 by the Honourable
Frank S. Miller contained a number of provisions which either have immediate
or potential impact on the Town of Newcastle.
The first of these is anelement of property tax reform. The Ministry has
proposed that beginning 1981 if implementation is possible by that time, that
full exemption from property tax will be established for defined farm land
and buildings,and for managed forests. The present farm tax rebate program
will be eliminated at the same time. Under this proposal farm residences will
become taxable in the same method as other single residences in non-farm areas.
The budget indicated that municipalities and school boards will be compensated
for this loss in tax revenue. The exact detail of implementation will be discussed
with farming communities, foresters and local government. It is hoped that there
will be great involvement of municipal bodies in these discussions, as there is
potential for tax shifts and new inequities to be created out of this program.
Mr. Miller also announced an increase in the O.H. I.P. premiums of $3.00 per
month for single person and $6.00 per month for a family effective July 1st.
This has the effect of increasing the Town's contributions on behalf of its
employees byan annual amount of $5,500 or $2,750 for the 6 month period that it is
in effect in 1981.
Mr. Miller also announced a change in provincial tax on fuels. The tax will now
become an ad valorem tax or a percentage of retail price system. The change at
the present time constitutes an increase in the tax of 1¢ per litre. At our rate
of consumption this would amount to an annual cost of approximately $1,400.
'
cont'd . . . . . . � �
r;o�
June 10, 1981
TR-40-81
Provincial Budget
Beginning in 1982 municipall.y_owned vehicles. will no longer be eligible for
reduced licence fees. Effective 1981 municipalities will have to pay the standard
fee under the Highway Traffic Act. For our fleet of vehicles this will amount
to approximately $14,000.
While each year the Province of Ontario announces and provides increases in its
grant program to municipalities, it would appear that some of those benefits are
being offset by the budgetary actions of the Province at this time.
K. Degroot.