P.E.I. carbon pricing needs to be revenue neutral, says mayor
Summerside mayor frustrated by lack of information on coming tax
Carbon pricing coming to P.E.I. in 2018 could have an impact on municipal taxes, and that concerns Summerside Mayor Bill Martin.
"No one needs to be paying more taxes," said Martin.
The province is looking for input on how revenue from carbon pricing might be spent. Martin argues it should be revenue neutral, and go right back to Islanders in the form of tax cuts in other areas.
"Reduce income taxes, or reduce HST on certain commodities that we have to pay HST on now," said Martin.
"We've had no indication whether the taxes that will be generated as a result of a carbon tax will be revenue neutral, like it is in the province of British Columbia."
While the city has little information to work with, Martin said his staff has looked at what a carbon tax versus a cap and trade system might mean for the city.
He said a tax could significantly increase water and property taxes, but a cap and trade system could benefit the city because of the wind power its utility produces.
Martin would like the P.E.I. Federation of Municipalities to get together and present a united position on carbon pricing to the province.
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With files from Natalia Goodwin