Residential Development Gives Cities More Tax Revenue- Right?
Municipalities often cite the need for more tax revenue as a reason for residential development. Does it provide them with more discretionary revenue? Well, not necessarily, and not in the case of the Town of Rosemère, Québec. The municipality wants to build housing on their now unused golf course. A citizens’ group, Rosemère vert, wants to keep it green. The Legacy Fund wants to help them do so. The Legacy Fund for the Environment asked the former Mayor of Westmount, Peter Trent, to prepare a report on the financial impacts of this proposed development. With his 20 years experience on intermunicipal boards, Mr. Trent is well placed to determine whether this proposed development would provide Rosemère with a bonanza of tax revenue. The Results: What he found was that the proposed development would actually increase property taxes for existing residents. Mr. Trent's original report and video presentation was followed by his supplementary report that dealt with the Town's more recent "clarification" of its plans. Mr. Trent did this work pro bono.
At present, taxes collected from the existing residents of Rosemère are insufficient to cover the services provided to these same residents.
It is the taxes from commercial properties that make up the difference.
The taxes on any new residents would, indeed, bring in more revenue, but they too would be insufficient to pay for the services these new residents require.
To make up for the shortfall, taxes would have to rise for all.
For further details please see: Analyse d'expert : Un développement immobilier sur le golf augmenterait nos taxes — Rosemère Vert / Green Rosemère (rosemerevert.ca) Expert analysis: Real estate development on the golf course would increase our taxes (Updated July 19) — Rosemère Vert / Green Rosemère (rosemerevert.ca)