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Communities could raise taxes to cover carbon pricing

NWT communities may be forced to pass carbon tax costs on to their residents, NWT Association of Communities CEO Sara Brown told a committee of MLAs on Thursday evening.

Community governments SA国际影视传媒渁re not going to be revenue neutral during this process, despite many assurances to that effect,SA国际影视传媒 Brown said, explaining thereSA国际影视传媒檚 no equivalent to the cost of living offset offered to individual residents under the plan.

Meanwhile, fuel for vehicle fleets and other associated municipal costs will likely filter down to residents through measures like user fees and property taxes. SA国际影视传媒淵ouSA国际影视传媒檒l just have to increase your taxes,SA国际影视传媒 Brown said. SA国际影视传媒淚tSA国际影视传媒檚 not revenue-neutral to anyone in the territory.SA国际影视传媒

NWT Association of Communities CEO Sara Brown told MLAs there may be tax increases as communities grapple with increased carbon tax costs.
Photo courtesy of Youtube

While the organization was SA国际影视传媒済enerally supportiveSA国际影视传媒 of the carbon tax, she said communities are already short $40 million in needed funds from the GNWT, and will have to gather more revenue as costs go up this fall.  SA国际影视传媒淭hey do not have any resilience ... to absorb these sorts of increases,SA国际影视传媒 she said.

The committee reviewing the policy, however, couldnSA国际影视传媒檛 substantively change the plan: Its chair Kam Lake MLA Kieron Testart said the government, outside of legislative review, had largely decided on the details.

SA国际影视传媒淩ight now weSA国际影视传媒檙e left in the uncomfortable position of having minimal influence on the details of carbon pricing that Northerners care most about,SA国际影视传媒 he said.

He told News/North the committee was SA国际影视传媒渧ery frustratedSA国际影视传媒 that it didnSA国际影视传媒檛 have the opportunity to properly action resident feedback on the plan.

SA国际影视传媒淲hen we finally got the plan, there was no real opportunity for regular members to engage on what was being proposed,SA国际影视传媒 he said, adding the Minister of Finance negotiated the plan directly with Ottawa, and left little room for input.

He added there were few accountability or transparency mechanisms built into the plan, unlike British ColumbiaSA国际影视传媒檚 tax plan which tracks where each dollar is spent. Rather, the NWTSA国际影视传媒檚 plan directs its revenue into a general stream with the assumption it will go toward rebates.

SA国际影视传媒淭he legislature will not approve a tax plan. They will not approve a carbon pricing scheme. That will be left to cabinet,SA国际影视传媒 he said.

The plan will price greenhouse gasses at $20 per tonne, and is expected to annually increase to $50 per tonne in 2022. It also rebates heating fuel, and exempts aviation fuel.

Also under the plan, large emitters like mines will get a 72 per cent rebate on their carbon tax, and 12 per cent will go into individual trusts.

These operators can then access the trusts to invest in further greenhouse gas reductions. Cabinet plans to manage the remaining funds.

In committee, both Testart and Frame Lake MLA Kevin OSA国际影视传媒橰eilly noted the two bills implementing the plan are light on the details of rebate implementation and associated reporting.

NWT Association of Communities CEO Sara Brown added the territorial government's plan for its carbon tax revenue doesnSA国际影视传媒檛 SA国际影视传媒渓eave anything left overSA国际影视传媒 for local investment in projects like energy planning.

SA国际影视传媒淐ommunities are always looking for funding to move ahead with their doing and implementing their energy plans,SA国际影视传媒 she said.

Recently speaking to News/North, Nahendeh MLA Shane Thompson also shared his concerns over the taxSA国际影视传媒檚 effects on communities, saying it meant SA国际影视传媒渕ore costs for (communities) to do their traditional way of life.SA国际影视传媒 He added that residents caught waiting for rebates at tax time could face financial difficulties.

When OSA国际影视传媒橰eilly asked if the territory had made any commitments SA国际影视传媒渢o do more than talk aboutSA国际影视传媒 funding, she said there were currently none.

Sahtu MLA Daniel McNeely, meanwhile, said that efficiency should come before more funding.

SA国际影视传媒淩ather than asking for more money, letSA国际影视传媒檚 work with communities on reducing what they already have,SA国际影视传媒 he said, though Brown said her office was already engaged in energy efficiency work.

Testart told News/North SA国际影视传媒渨e donSA国际影视传媒檛 have clear commitments from the government to offset those (communities' cost) increasesSA国际影视传媒 as a result of the carbon pricing regime.





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