March 16, 2023 – Charlottetown, PEI – The Federation of PEI Municipalities (FPEIM) is calling for provincial property tax changes, so municipalities can cover rising costs without adding to the financial burden of Islanders.
In its election priority document released today, the Federation advocates for a reduction in the provincial non-commercial property tax rate inside municipalities.
“Municipalities are stretched to the limit,” says Bruce MacDougall, FPEIM President. “With rising costs, they must make tough choices. They can delay investments in services and infrastructure, or increase taxes and fees.”
The Federation’s proposal would allow municipalities to increase their taxes and revenue without increasing the overall property tax rate for Islanders. Municipalities face increased costs due to high inflation, expanded services, and a rapidly growing provincial population. However, municipal governments have limited options to pay for increased services and costs, as most of their revenue comes from property taxes. PEI is the only provincial government in Canada that receives more property tax than its municipalities.
“We know that Islanders value municipal services – whether they’re visiting a rink, walking in the local park, getting help during an emergency, or having their say in community development,” says MacDougall. “We want to strengthen those services without adding to the cost of living.”
The Federation is also asking all parties to support interim measures to control development until a province-wide land use plan is in place.
According to Statistics Canada, the Island lost an average of 39 acres a day of farmland from 2016 to 2021.
“A province-wide plan takes years to implement,” MacDougall says. “We need to act now. Every day we wait, we lose more land, more resources, and more of our Island’s natural beauty.”
The Federation encourages Islanders to ask provincial election candidates how they would support municipalities and land use planning. For more information, visit fpeim.ca.
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For further information contact:
Lori Mayne, Communications and Member Services Officer
Federation of PEI Municipalities
lmayne@fpeim.ca
Tel: (902) 566-1493