In just seven months, the city of YellowknifeSA国际影视传媒檚 elected officials will see new CRA rules eliminate a one-third tax exemption on their salaries.

The City of Yellowknife is aware it will have to put any potential wage adjustment before councillors, said Kerry Penney, director of policy, communications and economic development.

Administration canSA国际影视传媒檛 confirm whether it will place the issue before current council, or the incoming council whose wages will be affected.

Some municipalities are scrambling to adjust to the CRA rules which will do away with the exemption in 2019, forcing them to either boost salaries to reflect an identical take home pay under new taxation rules, or retain current gross pay and see councillors take pay cuts.

Some officials receive allowances that are not included for tax purposes, including elected territorial, municipal and provincial politicians, school boards, and elected officers of commissions, corporations and municipal utilities boards.

The city is working on SA国际影视传媒渁nything that could possibly affect us. Regardless, it takes place in 2019,SA国际影视传媒� said Penney.

SA国际影视传媒淏ecause the honorarium for local officials is so low, people aren't really running for office to make money,SA国际影视传媒� she said.

City councillors work part-time and are compensated $13,333 annually, plus a tax free allowance of $6,667 and a taxable honorarium of $260 for each day they take off from their full time jobs for city business.

The deputy mayor, also part-time, is compensated $14,333 plus a $7,167 tax-free allowance.

The full-time mayor ears $58,587 annually, plus a $29,294 allowance.

The 2017 federal budget changed the tax rules during a review of tax expenditures to SA国际影视传媒渕ake existing tax measures more effective, equitable and accessible to Canadians,SA国际影视传媒� said Etienne Biram, media relations for the Canada Revenue Agency.

The amount excluded from taxation is limited to half of an officialSA国际影视传媒檚 salary or other annual remuneration, said Biram.

SA国际影视传媒淭he exemption for non-accountable allowances paid to certain public officials provides an advantage that other Canadians do not enjoy,SA国际影视传媒� he wrote.

The rules have changed to SA国际影视传媒渁ddress this inequity,SA国际影视传媒� he said.

Federal politicians lost their tax-free status in 2000. Calgary city council and its school board eliminated the rule in 2006 and Alberta MLASA国际影视传媒檚 lost eligibility in 2012.

Ontario removed the exemptions in 2001, said Scott Hanick, vice president of the Canadian Taxpayers Federation.

SA国际影视传媒淚n fact there are very few places left that this federal tax change affects,SA国际影视传媒� he said.

Taxation rules and municipal allowances were implemented in the 20th century at a time when politicians didnSA国际影视传媒檛 have expense accounts and up to half of their salary was considered tax free.

SA国际影视传媒淚t's really become a relic at this point. Many years ago it was an expense allowance but it became a strange perk that politicians got,SA国际影视传媒� he said.

SA国际影视传媒淭rying to get politicians to agree to lower their own pay is a little bit difficult,SA国际影视传媒� he said.

The federation recommends adjusting gross salary under new taxation rules to identically reflect the take-home pay.

SA国际影视传媒淪trathcona County just went through the same thing and the mayor was so worried about being appearing to raise his own wages,SA国际影视传媒� said Hannick.

Strathcona's city councillors reluctantly voted to raise their own pay in a 6-2 vote, resulting in identical take home pay under new CRA rules.

During the last discussion in YellowknifeSA国际影视传媒檚 council chamber in January, councillors debated automatic raises paced with inflation.

At the time, Coun. Adrian Bell asked that any discussion about wage reviews go to committee.

Sending wage discussions to committee is an option municipalities may want to employee with CRA rules looming, said Hannick.

Meanwhile, Biram said the federal government staggered the effect of new tax rules by giving organizations two years to adjust their compensation schemes for 2019 and onward.

Until 2019, if a municipality determines that a portion of an officials salary is an allowance, the CRA will exclude one third of the salary and the entire allowance from income.

Non-accountable allowances paid to an officer or employee are to be included in income for tax purposes, said Biram.

The taxpayers federation is in support of the new rules.

SA国际影视传媒淲e're opposed to any special rules for politicians when it comes to their taxes, said Hanick.

Unclear taxation rules can make it difficult to attract talent because candidates may be reluctant to leave full time jobs for ambiguous take home pay, he said.

SA国际影视传媒淚t masks the true after-tax money that they're getting and gives people a false impression about what a city councillor makes,SA国际影视传媒� he said.