NDP finance critic Michael Prue has called upon the McGuinty government to come clean on new property tax rates for properties in unincorporated areas.

A new Land Tax system is being put in place effective January 1, 2009, and all that affected property tax owners know at this point is that the new system will be based on the same current market value assessment that is presently in place in incorporated municipalities.

“All across the North, I am hearing legitimate concerns being raised by property owners in unincorporated areas regarding the impact these changes will have on their property taxes and whether their taxes will be used to improve badly needed local services,” said Prue. “With the implementation date for the new system approaching quickly, I think it is time that the McGuinty government ends all this uncertainty and starts providing specifics.”

According to Prue, no tax rates have yet to be set and the Ministry of Finance has been quite vague as to how the new rates will be determined and whether any additional monies raised will be earmarked for services in unincorporated areas. The Ministry of Finance will only promise that revenues raised in the North will be used to support services in the North.

Improved services in incorporated areas is a key concern of property owners.

“All provincial land taxes collected go directly to Ontario’s general revenue fund and, in effect, the money is shared by all the residents of Ontario. Even with the present system, it is very difficult to determine whether these funds are actually being used for services in unincorporated areas and with a potential huge increase in taxes, it is quite understandable that residents are demanding clarification,” said Prue.

The Ministry of Finance has scheduled formal consultations on the new Land Tax throughout the North for the last two weeks of August and Prue is strongly urging the government to use this opportunity to begin to respond to property owners’ concerns.