Short-Term Gain, Long-Term Pain? Why 0% municipal property tax increases cost so much.

Richmond Hill Council recently posted that it has set a maximum 0.5% municipal tax increase for 2021. In 2020 the municipal tax increase was 0.73%.


An article posted on Municipal World suggests that very low property tax increases will eventually lead to much higher increases in order to make up for the revenue shortfall.

In Richmond Hill a key campaign promise for Councillors Carmine Perrelli, Joe DiPaola, Tom Muench and Greg Beros was to lower taxes which may have helped them get elected but how much will it cost Richmond Hill taxpayers in the long run?


Quoting Norman Sandberg, 26 year Collingwood Councillor and author of this article who says:

"everyone hates taxes and almost every politician promises lower taxes. Many elections are won or lost on taxation. Is lower taxation really a benefit to the taxpayer? The short answer must be, “Yes.” But, is the short answer really the long-term solution?"
"Because my first budget, only months after being elected, required an almost double-digit tax increase following three years of zero percent tax increase. The large tax increase didn’t allow us to do anything more than “catch-up” with the deferred maintenance and works from the previous years. At an assumed inflation rate of two percent, holding taxes to zero really results in a two percent tax decrease. All too often, this is really short-term gain for long-term pain, as there is no alternate income source or reduction in service."
"Managing a municipal corporation isn’t only about low taxes. It’s about progressive leadership that allows for the intelligent and efficient operation of a multi-million dollar corporation serving the ultimate customer, the ultimate shareholder: the taxpayer."


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