Friday, Dec. 15: Readers debate the best way to fund City of Ottawa services. You can write to us too, at letters@ottawacitizen.com

Re: Letter, A fairer way to fund city services, Dec. 9.

I take strong exception to the notion that a municipal income tax is a better idea than the property tax system.

Calling the property tax system “regressive” is a non-starter. Annual property taxes are supposed to pay for municipal services, such as road maintenance, and for services such as fire, police, public transportation (including the famous “LRT”) garbage, etc. Those who pay for these services should be the users (OK, including the non-users of the LRT) and it should be based on a common denominator, which is the assessed value of the property people live in either as an owner or a tenant.

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Why should one pay more (or pay less) for a given similar service based on income? This proposal is intrinsically seriously and unfair compared to the current system.

The property tax system can certainly be improved; for example, the assessed value as reported on the tax bill is very often not in line with the market value of the related property. That needs to be addressed. But that does not mean the current system should be discarded.

The letter in question also refers to a number of programs that should be a provincial responsibility (such as ambulance, public health, child-care subsidies); funding for these should come from the province. If not, then the cost for these services should be specifically listed separately on the property-tax bill alongside other regular municipal services. Then we would know what services we are paying for through the tax bill, which would help with yearly accounting for these services: cost of services vs. tax collected.

Political promises to not increase property taxes, or to limit increases to a nominal amount that would be below cost, are complete nonsense.

Serge Huot, Navan

Several recent letters have explored ways to get more money to city hall. A municipal income tax is one idea. Here’s another.

Currently, property tax is the main source of municipal funding. Raising the tax rate is political peril. There’s a way to fix this, with provincial approval.

Owners now pay property taxes based on assessed values. Under-developed land has a relatively low assessment. Next door, owners who build something nice pay high taxes. This punishes improvements, and rewards neglect.

How about we replace the Property Tax with a Land Value tax.

Home owners could improve their property, and not pay a penny more.

More important, owners of land zoned for development would have an incentive to build quickly in order to bring in revenue. Owners who sit on blighted land, waiting for values to rise, would pay a much, much higher tax than they do today.

Patrick Esmonde-White, Ottawa

I offer another point of view to a letter writer’s remark about filled-in potholes. Denys Bryden and his crew did an excellent job recently of quickly and efficiently plowing roadways and sidewalks. We should thank city workers who work day and night to clear our streets to keep us safe.

Susan Buller, Ottawa

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Today's letters: Let's have no talk of municipal income taxes

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15.12.2023

Friday, Dec. 15: Readers debate the best way to fund City of Ottawa services. You can write to us too, at letters@ottawacitizen.com

Re: Letter, A fairer way to fund city services, Dec. 9.

I take strong exception to the notion that a municipal income tax is a better idea than the property tax system.

Calling the property tax system “regressive” is a non-starter. Annual property taxes are supposed to pay for municipal services, such as road maintenance, and for services such as fire, police, public transportation (including the famous “LRT”) garbage, etc. Those who pay for these services should be the users (OK, including the non-users of the LRT) and it should be based on a common denominator, which is the assessed value of the property people live in either as an owner or a tenant.

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Subscribe now to read the latest news in your city and across Canada.

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