Municipal Sales Tax - AMO Proposal

What’s next for Ontario taxpayers could be a one percent hike in the HST from 13 to 14 percent, if the Association of Municipalities of Ontario or AMO gets approval of its Local Share project. 

With the objective of developing a substantial Municipal Fiscal Sustainability Plan that is supported by a majority of AMO members, it’s estimated that a 1 percent municipal sales tax would bring in an extra 2.5 Billion annually in revenue to help fund critical local services like roads, bridges and transit. 

AMO feels the Local Share initiative would reduce upward pressure on property taxes and reduce the vulnerability of municipalities to federal and provincial policy changes. 

The $2.5 Billion would be allocated to Ontario’s 444 municipalities on a sliding scale per household.  In the case of Northumberland, the County and its seven municipalities would split the provincial allocation on the basis of total “own source” revenue. 

Despite concerns raised by several Councillors, in the end County Council voted in favour of the AMO proposal.