Councillors here will consider support for a Conservative MP’s campaign against the removal of a tax exemption for one-third of the salaries of municipal councillors.
In the March 21 federal budget, the Liberal government announced it would discontinue the tradition of a tax-free allowance for municipal councillors.
The Municipal Act previously provided that one-third of the salary paid to an elected member of council was deemed to be for “expenses incurred in the discharge of the member’s duties,” and not subject to income tax.
In April, Minto councillors discussed sending a letter indicating their concerns to Perth-Wellington MP John Nater.
At the June 6 meeting, councillor Mary Lou Colwell suggested council support a letter from Renfrew-Nipissing-Pembroke MP Cheryl Gallant opposing the move to end the exemption.
Gallant states in her letter, “Unlike some elected officials in cities who receive office budgets, car and expense allowances as well as six digit salaries, this is not the case with most municipal politicians I know, with a majority of our councillors receiving a base salary of less than $20,000.”
Gallant says the government is anticipating municipalities will increase salaries to council members to compensate for the loss of the tax break.
“Municipalities will now be forced to divert funds which would be spent on roads, bridges or clean water to reimbursing elected officials,” stated Gallant, who called the move a “tax grab” and “an unfair burden on Canadian municipalities and local ratepayers.”
Colwell said council should support Gallant’s position.
“We should show our support in some way that we stand behind it, that we feel the same way,” she said.
Council directed staff to bring back a report on the topic for further discussion.
