St. John's to raise spending, not taxes in 2014

The City of St. John's will increase spending in 2014 by 10 per cent without raising taxes for homeowners or businesses.

Tax increases, new tax expected in 2014 and 2015

St. John's mayor Dennis O'Keefe says there will be no tax increases for city homeowners or businesses in 2014. (CBC)

Business groups in St. John's don't like city council's warning of tax increases and new taxes in 2015.

The City of St. John's released its 2014 budget Monday, saying there would be no increases in residential or commerical property taxes for 2014, but there would be increases, and a new tax coming on stream in 2015.

Sharon Horan, the vice-chair of the St. John's Board of Trade, said the provincial government should help the city avoid tax increases for residents. 

Sharon Horan, the vice-chair of the St. John's Board of Trade, says the province should help the city avoid tax increases for residents. (CBC)

"St. John's is a regional centre so we have large hospitals, we have large government offices," said Horan. "We really need the government to to pay their fair share of taxes in our region."

The Newfoundland and Labrador branch of the Canadian Home Builders' Association has strongly disagreed with the city's plan to tax partially completed properties, starting in 2015. 

The group sent out a media release on Monday, which said housing prices in the city have risen 93 per cent in the last seven years. It added the city should focus on making homes more affordable, not more expensive through taxation. 

The City of St. John's will increase spending by almost 10 per cent in 2014 without raising taxes for homeowners or businesses. 

"There's absolutely no tax increase on residential properties, on commercial properties," said St. John's Mayor Dennis O'Keefe Monday.

However, the city has forecast tax increases for the years 2015 and 2016.

(Peter Gosse)

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.