Municipal Stability Requires New Fiscal Solutions

January 25, 2021

St. John’s – This week Municipalities Newfoundland and Labrador is digging deeper into its Municipal Solutions Platform advocacy campaign and focusing on the sector’s need for a stable fiscal reality.

At least 75% of municipal revenue in the province comes from property tax. Municipalities also rely on business taxes and supplemental revenue from programs and facility services, but the public health pandemic has highlighted the instability of these sources.

Research shows that a 1% transfer from the provincial portion of the HST could increase municipal budgets by 16% and 1% of personal income tax would increase municipal budgets by 21%. Property tax will never be able to raise this kind or revenue without disproportionately affecting lower income residents. However, a small change in provincial fiscal policy can mean big outcomes for the sector with minimal impact on taxpayers.

MNL is looking to partner with the provincial government to find solutions for improving municipal fiscal stability. The collective end goal must be to preserve current investment while finding new ways to generate revenue for the sector beyond simply raising property taxes.

“We need a stable source of support from our government over time, and one that we can count on as we all work to rebuild economies and support our communities.” Craig Pollett, MNL Chief Executive Officer.





Deatra Walsh
Director of Advocacy, Municipalities Newfoundland and Labrador