Lobbying group calls on province to hike HST to fund municipal infrastructure

A lobby group representing local governments is calling on the province to increase the HST to help pay for infrastructure such as roads, bridges, and arenas.

The appeal from the Association of Municipalities of Ontario, however, has already been shot down by the Liberals.

The AMO wants the government to increase the HST by one per cent from 13 to 14 per cent, with the additional $2.5 billion raised annually put directly towards funding municipal infrastructure projects.

READ MORE: Majority of Canadians believe we’re in an ‘economic emergency’: poll

AMO president Lynn Dollin said the funding gap from existing programs from the upper levels of government stands at $4.9 billion dollars annually for the next 10 years.

“Right now, your only reliever is higher property taxes,” she said. “Remember that $4.9 billion gap? To make ends meet, our combined property tax revenue would have to increase by eight per cent a year, every year, for the next decade.”

Dollin said Ontarians already pay the highest property taxes in Canada, and their polling suggests about three-quarters of Ontarians support increasing the HST rather than cuts or higher property taxes.

She expected resistance from provincial politicians.

“All three party leaders are here, and I’m pretty sure that their first reaction to our HST proposal is going to be ‘no’ but that begs the following questions: do they support higher property taxes? Do they support deep cuts to municipal governments?”

Tweet This Click to share quote on Twitter: "All three party leaders are here, and I'm pretty sure that their first reaction to our HST proposal is going to be 'no' but that begs the following questions: do they support higher property taxes? Do they support deep cuts to municipal governments?"

As Dollin predicted, the idea was quickly shot down by Finance Minister Charles Sousa’s office.

Sousa spokesperson Jessica Martin said in a statement that the provincial government has increased funding for municipalities over 25 per cent since the Liberals gained power in 2003. She also noted the province plans to double gas tax revenues to municipalities in 2019.

London Mayor Matt Brown and eight councillors are currently attending the conference in Ottawa, where they’re lobbying for provincial funding for BRT, high speed rail, and affordable housing.

Premier Kathleen Wynne is scheduled to address the conference in Ottawa Tuesday at 1:30 p.m.