Regionalization of Taxes and Services
The mayor of Saint John (Ivan Court) has been in the news over the last couple of days saying that local taxes are high because people who live in the suburbs are using city services. He noted the greater increases in suburban assessments in the defense of his agreement.
The mayor believes we should regionalize services so that each suburban municipality is paying for a share of more services. This would effectively create a higher tax rate in the suburban areas.
It's been a few years since I was in school getting an economics degree, but these sorts of debates still get me thinking about the way taxes impact people's decisions.
I think if there was one regional tax rate some people might be willing to move to the centre of the region (in this case Saint John), all else being equal. If there were no tax advantage to living away from the city centre, it would cost more to live in the suburban areas because of the cost of travel.
Of course taxes are not the only things sending people to Quispamsis, Rothesay, Quispamsis and other communities on the fringes of Greater Saint John. Because all else isn't equal tax increases in the suburbs won't likely create a flood of people back to the city.
If minor changes in taxes won't drastically impact where people live, is there a benefit for Saint John to see our riverfront neighbours pay more taxes? Maybe. If taxes from the suburban areas can fund regional services, the tax rate in Saint John might be able to decrease, which puts more cash in owner's pockets and possibly a greater willingness for them to improve properties and possible build new ones. This of course is dependant on whether or not regionalization would create lower costs for Saint John - which is another debate.
The mayor believes we should regionalize services so that each suburban municipality is paying for a share of more services. This would effectively create a higher tax rate in the suburban areas.
It's been a few years since I was in school getting an economics degree, but these sorts of debates still get me thinking about the way taxes impact people's decisions.
I think if there was one regional tax rate some people might be willing to move to the centre of the region (in this case Saint John), all else being equal. If there were no tax advantage to living away from the city centre, it would cost more to live in the suburban areas because of the cost of travel.
Of course taxes are not the only things sending people to Quispamsis, Rothesay, Quispamsis and other communities on the fringes of Greater Saint John. Because all else isn't equal tax increases in the suburbs won't likely create a flood of people back to the city.
If minor changes in taxes won't drastically impact where people live, is there a benefit for Saint John to see our riverfront neighbours pay more taxes? Maybe. If taxes from the suburban areas can fund regional services, the tax rate in Saint John might be able to decrease, which puts more cash in owner's pockets and possibly a greater willingness for them to improve properties and possible build new ones. This of course is dependant on whether or not regionalization would create lower costs for Saint John - which is another debate.
1 comment:
That anyone thinks property taxes are the only reason people move to the 'burbs is laughable. Anytime I talk to people from away, the typical, negative comment to surface when discussing Saint John is the bad smell from heavy industry. Many times these people have been here, and actually experienced it. And, anyone who lives here and hasn't experienced the smells is a liar or doesn't leave their house. This bitter pill will be Saint John's achilles heel for many decades to come, with the opening of a second major oil refinery and ancillary industries, in addition to the existing refinery, pulp and paper operations, the brewery, and port operations that include stinking fish meal and cruise ship exhaust. Enterprise Saint John is unimaginative and not doing enough to diversify our economy, and we will not draw new people here because Saint John is a one-trick corporate town. A real shame.
Good job on the site, by the way.
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