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Tax increases unsustainable, alternate revenue needed

Between 2012 and 2015, municipal taxes increased by more than 15 per cent. The progression was relatively slow, with a 4.3 per cent increase here and a 2.05 per cent increase there, but over four years it adds up to a 15.71 per cent increase.

Between 2012 and 2015, municipal taxes increased by more than 15 per cent.

The progression was relatively slow, with a 4.3 per cent increase here and a 2.05 per cent increase there, but over four years it adds up to a 15.71 per cent increase. That equates to roughly $1 million in additional tax revenue for the municipality.

For 2016, administration is requesting a 4.55 per cent increase. That’s down a percentage point from its original request of 5.56 per cent, but would result in more than 20 per cent in tax vincreases over five years.

Annual tax increases aren’t unique to Jasper, every municipality sees at least a small increase to keep up with the Consumer Price Index (CPI) each year, but there are differences between Jasper and other communities.

First, Jasper provides services for far more people than just those who call the community home; each year Jasper welcomes millions of visitors and because of that there is greater wear and tear on the community’s infrastructure.

This wouldn’t be an issue if Jasper was like other towns.

For instance, in a town like Hinton, if the community wants to build a new rec centre or hire a new employee, it can create additional revenue by approving the construction of a new subdivision and collecting property taxes on the homes. But in Jasper that’s not an option. Being in a national park, with strict rules around growth, the municipality doesn’t have the option of releasing land to create a new tax base. In fact, it doesn’t even have control over land use, planning or development—that’s in the hands of Parks Canada.

So the municipality’s only source of revenue—beyond government grants—comes from taxing the community’s existing property owners.

That means imposing annual tax increases that exceed CPI in order to maintain the services the community has grown to expect—keeping water flowing out of taps, toilets flushing, fields maintained, streets cleared and facilities functioning.

In many cases, the increases are necessary. The infrastructure in our community is aging and needs to be replaced and maintained—not only for our residents, but for our visitors who expect a certain level of service when they’re here.

But, despite the need, tax increases are  hard to swallow and the truth is they're not sustainable. With a limited tax base, Jasper’s taxpayers are stretched thin, paying far more than their share.

For years, council has acknowledged this issue, and it has been working with Banff and Canmore to lobby the government to provide tourism based communities with an alternative form of revenue, but in all those years nothing has changed.

With new governments both provincially and federally, it’s time for council to renew its efforts to alleviate the tax burden borne by the community’s property owners.

It’s time to inform our governments of Jasper’s struggles and lobby for change.

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