GST Cut Gives Provinces Tax Room To Fix Underfunding Of Cities

The ability to add up to one percentage point of the provincial sales tax would support the principle of accountability that is lost when funds are levied at one level of government and transferred to another. The tax would be administered and collected by provincial governments as appropriate, but the cities would set the municipal tax rate of up to one per cent. To avoid administrative confusion, qualifying cities in a given province should agree on a single tax rate. http://www.newswire.ca/en/releases/archive/January2008/15/c8856.html

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