HALIFAX – The Mayor of Halifax says people shouldn’t be too concerned over an increase in taxes because it may be possible to make up a projected gap in tax revenue in other ways.
A four-year projection shows a $63 million shortfall in tax revenue and there has been some talk of a rise in the tax rate to cover it off.
Mike Savage told NEWS 95.7, city staff are asking for a 1.8 per cent increase in the tax rate this year, but he doesn’t think it will be necessary.
“I’m not sure we’ll be increasing the tax rate much, if at all,” he said. “So for most people, I don’t think it will mean very much at the end of the day.”
Savage said he thinks the building boom in the city, and an increase in assessments, will cover the difference.
“The growth we have in the city–new homes, new buildings, new apartments–bring more money into the municipality, and most of that is what will make up the increase in expenditures if there is any. It won’t be on people who have an existing house whose value hasn’t gone up.”
Savage says they have been able to find savings in various departments to rein in any kind of tax increase in the past, but they are becoming harder to find.