1. CALL REGULAR MEETING TO ORDER

Transcription

1 THE CORPORATION OF THE CITY OF VERNON A G E N D A SPECIAL REGULAR OPEN MEETING OF COUNCIL CITY HALL COUNCIL CHAMBERS TUESDAY, FEBRUARY 21, 2017 AT 8:00 am 1. CALL REGULAR MEETING TO ORDER AGENDA 2. THAT the Agenda for the February 21, 2017 Special Regular Open Meeting of Council be adopted as circulated. 3. GENERAL MATTERS 4. COUNCIL INQUIRIES 5. ADMINISTRATION UPDATES 6. UNFINISHED BUSINESS 7. NEW BUSINESS FEDERAL GST CHARGED ON PROVINCIAL CARBON TAX (P. 3) A. THAT Council endorse the resolution as presented and direct the Clerk to submit the resolution with the background statement to the Southern Interior Local Government Association (SILGA): (note: as per SILGA direction, should the resolution be received by SILGA up to February 24, the resolution is considered an early resolution and SILGA will forward to UBCM prior to SILGA s AGM of April 27, 2017) WHEREAS the Government of British Columbia instituted a carbon tax in 2008; AND WHEREAS, the Government of Canada imposes GST on the carbon tax, essentially a tax on tax; AND WHEREAS, the carbon tax and subsequently the GST on the carbon tax applies widely on carbon fuels and affects the cost of living for British Columbians; NOW THEREFORE BE IT resolved that SILGA and UBCM reach out to member municipalities, encouraging Mayors, Councillors, Chairs and Directors to act as concerned citizens on behalf of our constituents and individually sign the petition before the Parliament of Canada which calls upon the Federal Government to eliminate the GST being charged on provincial carbon tax.

2 PAGE 2 SPECIAL REGULAR OPEN COUNCIL AGENDA - FEBRUARY 21, LEGISLATIVE MATTERS 9. COUNCIL INFORMATION UPDATES 10. INFORMATION ITEMS 11. CLOSE OF MEETING

3 THE CORPORATION OF THE CITY OF VERNON INTERNAL MEMORANDUM TO: Mayor and Council FILE: PC: DATE: February 20, 2017 FROM: Will Pearce, CAO SUBJECT: FEDERAL GST CHARGED ON PROVINCIAL CARBON TAX Councillor Bob Spiers has successfully launched an e-petition to the Parliament of Canada, calling for the Federal Government to eliminate GST being charged on Provincial (or territorial) carbon tax. The Mayor has reached out to SILGA, UBCM and FCM to seek assistance in fanning out the awareness of the issue and the petition (Attachments 1, 2 and 3). SILGA and UBCM both replied (Attachments 4 and 5) encouraging Council to submit a resolution for consideration. A proposed resolution and brief background statement are attached for Council consideration. RECOMMENDATION: THAT Council endorse the resolution as presented and direct the Clerk to submit the resolution with the background statement to SILGA. (note: as per SILGA direction, should the resolution be received by SILGA up to February 24, the resolution is considered an early resolution and SILGA will forward to UBCM prior to SILGA's AGM of April 27, 2017) "WHEREAS the Government of British Columbia instituted a "carbon tax" in 2008; AND WHEREAS, the Government of Canada imposes GST on the "carbon tax", essentially a tax on tax; AND WHEREAS, the carbon tax and subsequently the GST on the carbon tax applies widely on carbon fuels and affects the cost of living for British Columbians; NOW THEREFORE BE IT resolved that SILGA and UBCM reach out to member municipalities, encouraging Mayors, Councillors, Chairs and Directors to act as concerned citizens on behalf of our constituents and individually sign the petition before the Parliament of Canada which calls upon the Federal Government to eliminate the GST being charged on provincial carbon tax." Respectfully sub ted: Pearce, CAO P3

4 BACKGROUND The Government of British Columbia instituted a carbon tax in The Federal Government is strongly encouraging every province and territory to institute a like carbon tax. The Federal Government imposes GST (currently at 5%) on the BC Provincial carbon tax. This is a tax-on-tax. In BC alone the Federal Government will collect $63 million of Federal taxes imposed on BC's carbon tax in The carbon tax affects every individual in British Columbia. The subject resolution does NOT question the carbon tax. It does question the application of a Federal tax (GST) directly on a Provincial tax (carbon tax). This is an undue, and largely unseen Federal tax imposing tens of millions of dollars of costs on British Columbians and potentially hundreds of millions of dollars of costs on Canadians. While municipalities have the ability to recover the GST paid, most citizens cannot. The submitted resolution calls upon Mayors, Councillors, Chairs and Directors to act as individuals, as citizens of Canada, and sign the petition to the Government of Canada which calls for the elimination of GST charged on BC's carbon tax and any future carbon tax exacted by the provinces or territories. The petition is open for signature until May 4, 2017 at 1:32 pm (EDT) and may be accessed at P4

5 Attachment 1 File: January 6, 2017 THE CORPORATION OF THE CITY OF VERNON TH STREET VERNON, BRITISH COLUMBIA VIT 5E6 TELEPHONE (250) FAX (250) OFFICE OF THE MAYOR Mr. Chad Eliason, President SILGA PO Box Cityview PO Kamloops, BC V2E 0B2 Dear Mr. Eliason: RE: Support for Petition to remove GST being charged on the Carbon Tax We are writing to respectfully ask your consideration and support to have the below noted on-line petition be made available on SILGA's website and that notification of this petition be issued to all association municipalities, We have also contacted UBCM.and FCM for their consideration and support for this on-line petition initiative. Vernon City Councillor, Bob Spiers has asked for support for an on-line Parliamentary petition he initiated that calls on the federal government to remove the GST being charged on the Carbon Tax no more tax on a tax. The petition reads, "Whereas; The Government of British Columbia instituted a carbon tax in 2008 and the federal government GST is still being charged on this carbon tax. We the undersigned citizens of 'Canada call upon the Government of.canada to eliminate the GST being charged on this or any other future carbon tax enacted by the provinces or territories." The petition can be found at This petition is open for signatures until May 4, 2017, at 1:32 pm (EDT). If you have any questions, please do not hesitate to contact me at or mavorvernon.ca Yours Akbal Mund Mayor copy: Council P5

6 File: January 12, 2017 THE CORPORATION OF THE CITY OF VERNON TH STREET VERNON, BRITISH COLUMBIA V IT 5E6 TELEPHONE (250) FAX (250) 5, OFFICE OF THE MAYOR Mr. Chad Eliason, President SILGA PO Box Cityview,P0 Kamloops, BC V2E 0132 Dear Mr. Eliason: RE: Support for Petition to remove GST being charged on the Carbon Tax Last week I wrote to you on an issue Councillor Bob Spiers has brought to our attention. Tax on Tax. This is the application of Federal GST on top of Provincial Carbbn Tax, Tax on Tax. This is simply not right. In BC alone, the Federal Government will reap $63 million of federal taxes imposed on BC's carbon tax in The Federal Government will collect many times this amount across Canada as more Provinces apply a Carbon Tax, at the strong insistence of the Federal Government. Councillor Spiers has initiated a Petition to the House of Commons to remove the GST on Carbon Tax, in all Provinces, This "Tax on Tax" impacts all of us. As municipalities, as individuals, as business owners. This is an issue that Is rapidly gaining National Momentum, More than 1100 individuals across Canada have already supported the petition which means the petition will be presented in the House following the end of the petition period, May 4, 2017, at1:32 pm (adt). The petition has captured the attention of CBC and subsequently, the Municipal Information Network (a news service reaching across Canada). CTV has recently covered the topic in Ontario ( and has the interest of the Canadian Taxpayers Federation, This is a National issue, It is rapidly gaining momentum. SILGA is a respected advocate for issues having a significant impact on municipalities throughout the southern interior of British Columbia. I am appealing to you to get this message out. To directly contact all members of SILGA and encourage their consideration of supporting Councillor Spiers petition, The direct link to the Government of Canada petition is

7 January 12, 2017 Mr. Chad Eliason Page 2 If you have any questions, please do not hesitate to contact me at or mayor@vernon.ca You truly, Akbal Mund Mayor copy: Council P7

8 Attachment 2 File: January 6, 2017 THE CORPORATION OF THE CITY OF VERNON TH STREET VERNON, BRITISH COLUMBIA Vii 5E6 TELEPHONE (250) FAX (250) OFFICE OF THE MAYOR Murry Kraus, President UBCM 525 Government Street Victoria, BC V8V 0A8 Dear Mr. Kraus: RE: Support for Petition to remove GST being charged on the Carbon Tax We are writing to respectfully ask your consideration and support to have (the below noted on-line petition be made available on UBCM's website and that notification of this petition be issued to all BC municipalities. We have also contacted FCM and S1LGA for their consideration and support for this on-line petition initiative Vernon City Councillor, Bob Spiers has asked for support for an on-line Parliamentary petition he initiated that calls on the federal government to remove the GST being _Charged on the Carbon Tax no more tax on a tax, The petition reads, "Whereas: The Government of British Columbia instituted a carbon tax in 2008 and the federal government GST is still being charged on this carbon tax. We the undersigned citizens of Canada call upon the Government of Canada to eliminate the GST being charged on this or any other future carbon tax enacted by the provinces or territories." The petition can be found at This petition is open for signatures until May 4, 2017, at 1:32 pm (EDT). If you have any questions, please do not hesitate to contact me at or mayornvernon,ca Yours truly, Akbal Mund Mayor copy: Council P8

9 File: January 12, 2017 THE CORPORATION OF THE CITY OF VERNON TH STREET VERNON, BRITISH COLUMBIA V1T 5E6 TELEPHONE (250) FAX (250) OFFICE OF THE MAYOR Murry Kraus, President UBCM 525 Government Street Victoria, BC V8V 0A8 Dear Mr. Kraus: RE: Tax on Tax Last week I wrote to you on an issue Councillor Bob Spiers has brought to our attention. Tax on Tax. This is the application of'federal GST on top of Provincial Qarbon Tax, Tax on Tax. This is simply not right, In BC alone, the Federal Government reap $63 million of federal taxes imposed on BC's carbon tax in 201i6. The Federal Government will collect many times this amount across Canada ps more Provinces appila Carbon3axat the strong insistence of the Federal Government, Councillor Spiers has Initiated a Petition to the House of Commons to remove the GST on Carbon Tax, in all Provinces, This "Tax on Tax" impacts all of us, As municipalities, as individuals, as business owners. This is an issue that Is rapidly gaining National Momentum. More than 1100 individuals across Canada have already supported the petition which means the petition will be presented in the House following the end of the petition period, May 4, 20170at 1:32!,pm (EDT), The petition has captured the attention of CB d and subsequently, the Municipal Information Network (a news service reaching across Canadp). CTV has recently covered the topic in Ontario (htto://toronto.ctvnews,ca/video?clipid ). and has the interest of the Canadian Taxpayers Federation. This is a National issue, It is rapidly gaining momentum.. U,SQM is a respected advocate for issues having a significant impact on municipalities across British -tolumbla, I am appealing to you to- get this message out. To directly: contact all members of UBCM and encourage their consideration of supporting Councillor Soiers -petition, The direct link to the Government of Canada petition is hitps://petitione.parl.qc.ca/en/retition/detalls?petition=e-713 P9

10 January 12, 2017 Mr, Kraus, UBCM Page 2 If you have any questions, please do not hesitate to c,ontact me at or mayoravernon.ca. Your ruly, Akbal Mund Mayor copy: Council P10

11 Attachment 3 File: January 6, 2017 THE CORPORATION OF THE CITY OF VERNON TH STREET VERNON, BRITISH COLUMBIA VIT 5E6 TELEPHONE (250) FAX (250) OFFICE OF THE MAYOR Mr. Clark Somerville President Federation of Canadian-Municipalities 24 Clarence Street Ottawa, Ontario KIN 6P3 Dear Mr, Somerville: RE: Support for Petition to remove GST being charged on the Carbon Tax We are writing to respectfully ask your consideration and support to have the below noted on-line petition be made available on FCM's website and that notification of this petition be issued to all Canadian municipalities. We have also contacted UBCM and SILGA for their consideration and support for this on-line petition initiative. Vernon City Councillor, Bob Spiers has asked for support for an on-line Parliamentary petition he initiated that calls on the federal government to remove the GST being charged on the Carbon Tax no more tax on a tax. The petition reads, "Whereas: The Government of British Columbia instituted a carbon tax in 2008 and the federal government GST is still being charged,on this carbon tax. We the undersigned citizens of Canada call upon the Government ofcanacla to eliminate the GST being charged on this or any other future carbon tax enacted by the provinces or territories." The petition can be found at This petition is open for signatures until May 4, 2017, at 1:32 pm (EDT). If you have any questions, please do not hesitate to contact me at or mavor@vernon.ca Your ttuly, Akbal Mund Mayor copy: Council P11

12 File: January 12, 2017 THE CORPORATION OF THE CITY OF VERNON TH STREET VERNON, BRITISH COLUMBIA V I T 5E6 TELEPHONE (250) FAX (250) OFFICE OF THE MAYOR Mr. Clark Somerville President Federation of Canadian Municipalities 24 Clarence Street Ottawa, Ontario KIN 5P3 Dear Mr. Somerville: RE: Tax on Tax Last week I wrote to you on an issue Councillor Bob Spiers has brought to our attention. Tax on Tax. This is the application of Federal GST on top of Provincial Carbon Tax. Tax on Tax. This is simply not right. In BC alone, the Federal Government will reap $63' millibn of federal taxes Imposed on BC's carbon tax in 20.1,$, The Federal Government will collect meny times this amount across Canada as more Provinces apply a Carbon Tax, at the strong insistence of the Federal Government. Councillor Spiers has initiated a Petition to the House of Commona to remove the GST on Carbon Tax, in all Provinces, This "Tax on Tax" impacts all of us. As municipalities, as i,nclividuels, as business owners. This is an issue that Is rapidly gaining National momentum, More than 1100 individuals across Canada have already supported the petition which means_ the Petition lli be presented in the House following the end of the petition period, May 4, 2017, #1:32 pm (EDT), The petition has captured the attention of CBC and subsequehtly, the Municipal Information Network (a news service reaching across Canada). CTV he's recently covered the topic in Ontario ( and has tne. Interest of the Canadian Taxpayers Federation. This is a National issue, It is rapidly gaining momentum. FCV is a respected advocate for issues having a significant impact on municipalities across Canada. I am appealing to you to get this message out. To directly contact all members of FCM and encourage their consideration of supporting Councillor Spiers petition, The direct link to the Government of Canada petition is P12

13 January 12, 2017 Mr. Clark Somerville, FCM Page 2 If you have any questions, please do not hesitate to contact me at or mayorvernon.ca Yours tr y, A al Mund Mayor copy: Council P 1 3

14 SILQA so g0.: e nern Interior L,: i ment.xsso. It February 1, 2017 Attachment 4 Corporation of the City of Vernon t h St. Vernon, BC V1T 5E6 Dear Mayor Mund, Re: Carbon Tax Petition Thank you for your letters dated January 6th and January 12t h regarding the Federal GST currently charged on the provincial carbon tax. At the January 25 th SILGA executive meeting the board discussed the petition and SILGA's role in potentially supporting it. SILGA's mandate is to follow the lead of its membership; in that regard, the executive has proposed that Vernon put forth a resolution to be brought to the membership at the upcoming AGM. Resolutions received up to February 24th are considered early resolutions and will be forwarded to UBCM prior to our AGM for their comments. Please send the resolution by to the SILGA office at yoursilga@gmail.com, with a hard copy to the address listed below. Thank you, Chad Chad Eliason President, SILGA PO Box Cityview PO Kamloops, BC V2E 0B2 yoursilga@gmail.com Tel: P14

15 Attachment 5 January 16, 2017 Union of BC ACM Municipalities Mayor Akbal Mund City of Vernon th Street Vernon, BC V1T 5E6 The uorpwatturi the City at VERNON Ac<N7 0?)(L)0 Gav\C AO ())11 t2 \ 1A011 Dear Mayor Mund, cep & Thank-you for your correspondence dated January 12, 2017 regarding GST being paid on top of the Provincial Carbon Tax. I asked our staff to review the UBCM Resolutions database to determine whether we have existing policy on this matter, and it appears that we do not. co5-v At this stage I might suggest that the City of Vernon consider preparing and submitting a resolution on this matter to SILGA and to our membership. This will provide some additional profile to the issue advanced by Councillor Spiers and when endorsed, will form UBCM policy. Also, given that GST is a federal tax it would be advantageous for you to advance this to FCM as well. In terms of connecting with local governments in the interim, I would suggest that you contact Civiclnfo BC. They provide a service that enables local governments to be able to share correspondence with all other local governments in BC. Yours truly, Councillor Murry Krause President, UBCM c overnrnent Street, Victoria t