DARRYL KNIGHT Local Journalism Initiative Reporter for The Standard
KAWARTHA LAKES: At a committee meeting on Tuesday, February 4th, Kawartha Lakes Councillor Pat Warren put forward a recommendation for the city to support a resolution from the Town of Aurora, calling for the redistribution of the Provincial Land Transfer Tax and the Goods and Services Tax (GST) collected on property transactions. The proposal, aimed at addressing growing municipal infrastructure costs, was received with support and will be forwarded to council for further consideration.
“The financial pressures on municipalities continues to grow. We need new sources of revenue to keep up with infrastructure demands,” said Councillor Warren. “Right now, the province collects Land Transfer Tax on every property transaction, but none of that revenue comes back to the municipalities where those transactions take place. The same applies to the federal GST on property sales.”
The resolution from Aurora urges the provincial government to reconsider distributing a portion of the Land Transfer Tax to municipalities and calls on the federal government to allocate a percentage of the GST collected on property sales to support local infrastructure needs.
Kawartha Lakes councillors acknowledged the increasing burden on municipal budgets, with many communities struggling to fund necessary infrastructure projects. “The current sources of municipal revenue, mainly property taxes, are becoming insufficient to keep pace with the growing costs of roads, bridges, and other essential services,” said Councillor Warren. “A redistribution of these taxes would provide a sustainable funding source without placing additional financial strain on residents.”
If approved by council, copies of the recommendation will be sent to key officials, including the Prime Minister, the Premier of Ontario, the Ontario Minister of Finance, the Minister of Municipal Affairs and Housing, local representatives Jamie Schmale MP and Laurie Scott MPP, and the Association of Municipalities of Ontario (AMO).
“It makes sense we can at least try to get a piece of that (money), and I hope this can be supported,” explained Councillor Warren.
The recommendation will be reviewed at the next regular council meeting, where councillors will decide whether to formally endorse Aurora’s request.
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