Prince Edward County Mayor Steve Ferguson is calling on the provincial government to increase their HST rebate for municipalities.
Mayor Ferguson put forward a motion during Tuesday’s meeting of council for the municipality to officially request the increased rebate along with forwarding the motion to all other Ontario municipalities for their consideration.
In the motion, Mayor Ferguson outlined how the federal government offers a 100% rebate to municipalities for HST paid, but the province only offers a 78% rebate on its portion. This results in millions of dollars annually paid in HST that are not returned to the municipality. The provincial portion of HST is 8%, with the portion not returned by the rebate coming out to 1.76%.
The mayor outlined his case for increasing the rebate within the motion, saying that it would provide consistent and reliable income for municipalities without requiring an increase in taxes. He went on to suggest that the funds could be invested into infrastructure, asset management, or funding essential services.
Council voted to approve the motion without debate.
