We need tax reform I recently received the assessment notice for my small business in Lunenburg. I own and operate The Water Market in Lunenburg.
Two years ago we built a two-bay self-service car wash, something this community needed. It cost us around $75,000. Last year my assessment went up $71,000. Okay, I guess that's the way of it but this year it went up another $32,000. Most commercial assessments in this area saw minor increases or even decreases. With the current tax rates that's roughly a $3,300 increase in my taxes, almost $300 per month in property taxes for the car wash. Add to this the 20 per cent tax rate for small business and other operating expenses and it may make sense to tear down the building. I'll look into it but probably I'll just do what any entrepreneur would do. I'll just hope for a better year next year. We need tax reform. But don't hold your breath waiting for it. HRM formed a committee a couple of years ago to look at it. They spent a lot of time and formulated some good ideas. They published reports, had a great website and things were looking like it could happen. Then it came back to council and it was moved and passed that the project be abandoned. Why? Tax reform, by definition, means taxes will change. Some residents' taxes will go down while others will go up to compensate for it. It's no different here on the South Shore. There's just no political will to make the system fair due to the fact that the properties that will see a reduction would be the commercial ones and the more expensive homes. The more expensive homes are so due only to the fact that they were recently purchased, renovated or built. The commercial properties have always been the whipping boy when local governments were looking for revenue. Rather than appreciate that these commercial enterprises employ residents and brought prosperity to our communities, we have consistently burdened them with tax rates two to four times higher than residential tax rates. Business owners are relatively few compared to overall population. Often the owners or shareholders in the business don't live in the community. It's only a few votes lost. So expect to hear local officials continue to brag about holding the tax rate while our assessments more than provide revenue increases. Expect to see our tax system continue to squeeze the life out of what makes our community work because it will not change. It won't be changed by politicians at any level. It will not even be noticed by the general population until the empty storefronts and the lack of opportunities for our young people get even worse than they are now. Then we'll be looking to lay blame on the businesses and local governments. I don't know how to correct the problem. Few of us will buy locally for a few dollars more when we can go to the box store. Even less of us are going to support a property tax increase for ourselves when we could get by another year without it. No politician who wants to get re-elected will ever propose the changes that are needed. And then there's ... I'm going to stop here. I'm just getting more depressed. JOHN MCGEE posted on 02/01/12 |
Headlines We need tax reform Naturalist group folds Government puts 'spin' on the truth Time to remove the straight pipes Sections
Lifestyle | Comment | Young Readers Social Notes | Letters | Features Arts and Entertainment In Brief | Court Report Classifieds | Milestones Navigation
Earth Friendly News Edition
|












