Increased property taxes are good news says Treasurer Wes Sheridan photo: CBC
Taxes will rise with CPI or actual sale price of properties
Provincial Treasurer Wes Sheridan reinforced the old saw about nothing more sure than “death and taxes”.
Governments need to spend money. So they need taxes and property taxes are one of their favourites.
In May 2010 the Liberal 2-year property tax freeze is over and property taxes will rise with the CPI. Last year the CPI was negative as of September so the increase might be nil. The rate will be capped at 5% annually which seems high today but the future is uncertain.
Since 2002, the CPI has risen 18.6% on PEI.
The devil will be in the details. Is that CPI seasonally adjusted or not? What will the exact CPI base be since there are several versions of the CPI?
Treasurer Wes Sheridan told the Legislature that the audited financial statements for the fiscal year 2008/2009 will only be $33 million not $41.4 as projected.
He predicts PEI will have a balanced budget by 2011/2012.
Jim Bagnall said he found it strange that the government applauds itself for losing $33 million plus $80 million this year. Where is the $200 million extra the Federal government gave to PEI this year, asked Bagnall.
Bagnall thought he should resign with that record of losing money.
The documents were tabled.
We will follow with more details when the official documents are made public.
Looks like the government bail-out is an offer they can’t accept
Stephen Pate, NJN Network, Charlottetown, Prince Edward Island, Canada, May 26 2009 with story from CBC
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