By Mark Squibb/October 28, 2022
The Town of Bay Bulls has once again requested an exemption from the provincial government’s Own Source Revenue tax policy.
“The Government of Newfoundland and Labrador defines ‘Own Source Revenue,’ as a general revenue from taxes,” explained Mayor Keith O’Driscoll during last week’s meeting. “Municipalities are required to maintain a minimum level of own source revenue each budget year based on population and per capita rate.”
When the policy was first implemented several years ago, it required both Bay Bulls and Witless to increase the level of taxes they were charging their residents. Both towns requested exemptions from the policy.
Bay Bulls requested an exemption last November, with councillor Jason Sullivan labelling the policy ‘outlandish’ and ‘crazy.’
This time the Town is the Minister of Municipal of Municipal Affairs for permission to reduce the per capita rate it had to charge from $1,047 down to $873. Sullivan made the motion which was seconded by new councillor Corey Ronayne.
“I would like to weigh in, because we have talked about this before, that Bay Bulls’ per capita rate is significantly higher than a lot of other municipalities of similar size and growth history,” said chief administrative officer Jennifer Aspell. “And what that means is that we have to generate more taxes than any other comparable municipalities, and therefore our mil rates are reflective of that.”
Deputy Mayor Jason O’Brien added that council’s aim is to maintain current rates and to avoid any increases.
The previous council in neighboring Witless Bay requested an exemption from the policy in 2020 on similar grounds and received approval.
In a follow up phone call, Aspell said that due to a population increase of 66 residents, the policy means that Bay Bulls will have to generate roughly $69,000 in additional tax revenue in 2023.
