Municipal Fiscal Sustainability

Municipal Fiscal Sustainability

 

COMMERCIAL TAXES

The commercial proportion of property taxes paid decreased by -0.4% between 2011-12 and 2012-13. Longer-term, the commercial proportion has declined from 40.3% in 2007-08 to 38.8% in 2012-13. This is in part due to the phasing out of the business occupancy tax as well as increases in total residential assessed value relative to commercial. 

The average commercial property tax increased by 0.8% between 2011-12 and 2012-13, continuing its trend of growing at a slower rate than GDP. Overall, commercial and business occupancy taxes as a percentage of GDP dropped in 2011-12 from 1.18% to 1.16% in 2012-13 – and the longer trend shows relative stability as the 2007-08 commercial tax was 1.16% of GDP. 

Overall, all taxes and payments in lieu of taxes represented 3.39% of GDP in 2012-13. This was a decrease from 2011-12 0.02%; however, an increase from 2007-08, which represented 3.2% of GDP.

       
 

RESIDENTIAL AND COMMERCIAL TAX SPLIT, HRM
(General, Provincial & Transit)

TAX_GRAPH-01 
Source: HRM Taxation and Fiscal Policy
 

REVENUES

Expenditures kept up with revenues in 2012-13, increasing 4.1% from 2011-12 to $821 million. When looking at revenues per dwelling, the value actually decreased from $3,560 in 2011-12 to $3,535. This is a positive indicator as it suggests much of the growth in revenues and expenditures is occurring as a result of Halifax increasing its population and GDP, rather than an increased average burden on commercial or residential payees.

 

BOND RATING

HRMs credit rating improved in 2012 to AA- and the outlook is stable, indicating that the municipality’s credit worthiness continues to be high.

The municipality’s long-term fiscal health is important, and keeping up with infrastructure improvements without greater burden on businesses and residents is a challenge that many municipalities will continue to face. Further, ensuring that taxation is stable, predictable, and viable at the margins as well as the average is critical to the long-term prosperity of the city.

 

TOTAL REVENUES BY SOURCE, HRM

TOTALREVENUES_GRAPH1-01-cropped
Source: HRM Taxation and Fiscal Policy
     
    STANDARD_POOR



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