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No HST hike under Wynne government

With the election in Ontario under 10 months away, Premier Kathleen Wynne’s Liberal government does not seem likely to consider calls for a bump in the provincial sales tax as a means to deal with crumbling infrastructure.

The call for an HST hike emerged in advance of, and during, the Association of Municipalities of Ontario (AMO) conference currently underway in Ottawa. A rise from the current 13 per cent sales tax to a 14 per cent levy was the brainstorm of a lobby group with the interests of hundreds of municipal governments in mind.

A delegation from North Bay, led by Mayor Al McDonald, and including CAO Keith Robicheau and Councillors Mac Bain, Mark King, and Jeff Serran is attending the AMO conference.

“Municipalities cannot possibly make ends meet on property taxes alone,” was the message from AMO president Lynn Dollin to municipal officials attending the Ottawa conference. Dollin claims that AMO polling shows overwhelming support (up to 75 per cent of Ontarians polled) for the measure.

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Dollin maintains that the 14 per cent tax option would alleviate pressure on municipalities who are currently faced with increasing property taxes and declining levels of service in their regions. There is thought to be a funding gap of up to $4.9 billion annually over a ten-year span, an amount that could lead to skyrocketing property taxes just to put a dent in.

The Wynne government has promised to double gas tax funding to municipalities in 2019. The Liberals have also committed to a 13-year infrastructure program, with a price tag of just under $200 billion that will fund new schools, hospitals, and public transit infrastructure.

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