AMO

best serviceOntario’s diversityof municipal govern- ments.When looking for a solution that would be sus- tainable,fair and flexible,a new1 percent HSTmade themost sense compared to all alternatives.It has also provedmore popular in publicpolls,with 73 percent of Ontarians polled supporting a 1 percent increase in HSTdedicated solely tomunicipal infrastructure. It is important for economicdevelopment to have good local infrastructure tomove goods,services,and people.Businesses depend on communities with good roads and strong,essential local services.Asales tax would help communities deliver the services and infra- structure that businesses expect and depend on,while keeping commercial property tax rates competitive. At the same time,for every$100million dollars invested in public infrastructure,the GDP is boosted by$114 million dollars. For manypeople,especially seniors,young adults, and families,rising property taxes would further add to Ontario’s housingwoes. “Rising property taxesmakeOntario’s housing even more unaffordable for many families and seniors,” Dollin says.“Municipal governments need a better mix of reliable funding sources sowe can provide critical services and infrastructure.” Sales taxes are less regressive than property taxes, ASSOCIATION OF MUNICIPALITIES OF ONTARIO which don’t take income into account at all.People who spend less,pay less in sales taxes.Special rebates further protect thosewith lowincomes.Asales tax alsomeans that everyonewho usesmunicipal services -including visitors and tourists-would pay for those services. AMOwill beworking hard tomake sure that all pro- vincial leaders consider the future of communities and municipal governments as theyhit the campaign trail. “Across theworld,municipalities use sales taxes to fund services,”Ms.Dollin added.“If we don’t lookat a newapproach,property taxes will rise rapidly,or ser- vices will be cut deeply.” Ontario’smunicipal governments will continue to find efficiencies and lower costs where possible.How- ever,all the efficiencies cannot close a $5 billion gap. Ontario’smunicipalities and property taxpayers need provincial and federal cooperation to avoid significant property tax increases.