MLAs 'surprised' by N.W.T. government's plan to introduce new tax

The Northwest Territories government is planning to introduce a new tax to try to recoverthe territory's declining revenues some MLAs say they were surprised by the news, while others called out the government for its "cryptic" messaging around it.

On Tuesday, Finance Minister Robert C. McLeod saidhe'splanning to introduce legislation for the new land transfer tax in the fall.

The territorial government tabled its proposed budget earlier this month, with a$53 million year-over-year revenue decline.McLeodsaid Tuesday thetax is a response toMLAswho called for new ways of addressing declining revenues.

The N.W.T. tax will boost revenues by $3.1 million annually, and the tax rates can be lower onpropertieswith lesser value to help"lower the impact on modest income homeowners,"McLeodsaid inthe budget address on Feb. 8.

"I'll put it plainly and not hypothetically. Is this new tax going to disproportionately affect residents ofthe city of Yellowknife?" askedKamLake MLAKieronTestartTuesday.

"I'll answer plainly. The taxmay affect those communities that have higher real estate costs than others across the Northwest Territories," saidMcLeodat the Legislative Assembly.

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MLAsunimpressed, demand more answers

During question period Tuesday, Testart pushed theminister for more details on the proposed tax calling out McLeodfor "his somewhat cryptic statements" about it in the budget address.

McLeodrespondedby sayingthere will be opportunities in the future for MLAs' input.

"As I feared, this is a revenue grab by the government," said Testart, to which McLeod disagreed.

Testart's sentiment wasmirrored by Yellowknife Centre MLA Julie Green.

"I was surprised," said Green about finding out about the tax in the budget address.

She saysnews of the tax "really comes out of left field" because the tax was not mentioned in the government's revenue options paper from 2016,which lists the various ways the government does and will raise its revenues in the future.

Green said MLAs have not received any information about the land tax proposal, and questioned how the government came up with the $3.1 million figure.

The N.W.T. currently charges home buyers registration fees based on property values; Green wants to know whetherthe new tax will replace, or be anadditional cost to residents.

LikeTestart, Green said she's concerned that the tax would mean a higher tax for home buyers in Yellowknife.

"That, to me, would be an unfair tax on Yellowknife," said Green.

This would be the second year in a row the territorial government introduces new fees or taxes for residents last year, it started levying a new airport improvement fee that increased costs for flights to and from the Yellowknife airport.

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