Quote:
Originally Posted by MalcolmTucker
The Feds require province wide for HST rate changes, at least for Ontario.
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HST is a form of sales tax - but if HRM had the power to do a sales tax, they could do it within the confines of HRM. It could be a percentage or something like $0.05 on any item over $5. That's what a city in the US did (I haven't had coffee so forgive me, I can't remember which one) and when they combined it with value capture and tax increment financing, they raised nearly half a billion $ in bonding capacity.
What I'm trying to suggest in my comment (which may not have been clear since it was quite late) is that if HRM wants to get into building streetcars/LRT - they need alternate sources of financing to do it, rather than just going cap in hand to the Province or feds. So if it cost say $200 million to build the 2 peninsula streetcars I've suggested in my map (vehicles and maintenance facility included); then if a TIF and value capture could be used then HRM may be able to raise (in bonding capacity) the whole amount. Or most of it and then seek additional money.
The same would hold true for a future LRT line. The only concern I would have is if we bonded out 100% of value capture of a TIF. I'd want to limit it to no more than 75%, this way the City has some capacity to maneuver and use the $ for other services...