“Australian Property Sector Welcomes Tax Plans,” plus 3 more

Australian Property Sector Welcomes Tax Plans,
Planet Election Guide: Property tax hike
I-Team Examines Property Tax Break
Lower tax levy offsets rising property values

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Australian Property Sector Welcomes Tax Plans,

Posted: 04 May 2010 06:22 AM PDT

Australian Property Sector Welcomes Tax Plans, by Mary Swire, Tax-News.com, Hong Kong
Last updated 3 hours ago | Tuesday, May 04, 2010

While it considers that there were many positives for the property industry from the Henry tax review and the Australian government's announced tax programme, the Property Council of Australia (PCA) has called on the government to clarify its plans for a second wave of tax reforms, particularly in relation to inefficient property taxes.

The Henry tax review's recommendations and the Australian government's new tax reforms have largely been welcomed by the commercial property sector. The PCA's chief executive, Peter Verwer, said: "The government has ruled out any tinkering with the negative gearing and capital gains tax regimes. The gradual increase in the superannuation rate to 12%, the reduction in company taxes, concessions to small business, and the establishment of an infrastructure fund are also big positives."

However, the government has also committed to further waves of reform, he added. "At the top of its list should be the modernization of Australia's outmoded property tax system. Dr Henry's report clearly demonstrates the critical importance of replacing inefficient property taxes with a modernized approach to real estate taxation."

The PCA looks for a detailed commitment in relation to the process for reforming state property taxes, particularly stamp duties. While this, it says, will be a highly political process it feels that the alternative would be higher (and new) property taxes in the future.

"The Henry review also recommended a major update and re-write of trust rules to reduce complexity and uncertainty," he concluded. "We look forward to the federal budget, where we anticipate the government will signal measures to deliver a simple, elective, managed investment trust regime." The PCA notes that the exemption of trusts from controlled foreign companies and foreign investment fund rules, and from thin capitalization rules, is already underway.

A comprehensive report in our Intelligence Report series dealing with the issues raised by international property investment, and the possible taxation implications raised by such purchases, with an account of the likely (and some less obvious) potential countries for your consideration, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report15.asp

Planet Election Guide: Property tax hike

Posted: 04 May 2010 07:59 AM PDT

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I-Team Examines Property Tax Break

Posted: 04 May 2010 01:22 AM PDT

POSTED: 2:53 am CDT May 4, 2010
UPDATED: 3:11 am CDT May 4, 2010

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Lower tax levy offsets rising property values

Posted: 04 May 2010 04:24 AM PDT

PETAWAWA: Council passes budget

Posted By SEAN CHASE SCHASE@THEDAILYOBSERVER.CA

Posted 4 hours ago

-Intent on mitigating the impact of rising property values, council brought down an $11.8 million budget last night that contains a 3.3 per cent decrease in the town's tax levy.

Delivering the budget address, Mayor Bob Sweet said that Petawawa continues to boast one of the lowest rates of taxation in Renfrew County and yet will uphold the level of services that residents have come to expect. To bring the rate down, council had to cut over $1.9 million from projected expenditures.

"The costs associated with managing a growing and vibrant municipality continue to escalate," Mayor Sweet explained before council passed the budget.

"The pressures of an expanding population, aging infrastructure and strict, provincially-demanded operating guidelines require council to consider budgets that are financed by rates of taxation and user fees that can sustain the corporation."

The effect of the decrease will vary from property to property depending on assessment changes from 2009 to this year. A home valued at $100,000 in 2009 paid $286.12 in taxes. However, that property is now valued at $109,000, meaning the tax will be $301.57, an increase of $15.45.

A commercial property assessed at $100,000 last year will experience a value change of five per cent, meaning the tax rate will be $7.96 extra this year.

"Council considered the implications of the second year phase-in of assessment increases and targeted a rate decrease to mitigate the impact that rising property values would have," explained Mayor Sweet.

Leading the expenditures is $3.1 million in capital works and transportation. Thanks to infrastructure grants and stimulus funding, the reconstruction of Russell Street up to Selkirk Street will continue at a cost of $854,000. Using joint federal/ provincial funding, Gutzman Road will be rehabilitated to the tune of $270,789, while River Drive will be reconstructed up to Radtke Road for $312,500. Another $132,360 will be invested in sidewalks.

Significant work to the water and sewage infrastructure will be undertaken. The town will be investing $360,000 in replacing an aging water-main on Petawawa Boulevard from the base's main gate to the Petawawa River bridge. The project will realign the main, enhance the valves and complement the commissioning of a new $5 million base water tower.

The town will be making improvements to municipally-owned buildings, such as replacing the roof over the former township hall, which now houses the Upper Ottawa Valley OPP detachment, at a cost of $112,000. Fire Station No. 2 on Victoria Street will receive $48,000 in upgrades, while $37,000 in repairs will be made to the foundation of the Norman Behnke Hall and $233,500 in capital improvements to the Civic Centre arena.

"The task of balancing corporate expenditures with reasonable rates of taxation was particularly challenging this year," noted Mayor Sweet. "Committing to infrastructure renewal, assets enhancement and public safety will invariably generate numerous spending alternatives."

The fire department will be receiving a $380,000 Metro Star pumper which will be financed through reserves that were established for fleet replacement. The department will also be adding $49,000 in new equipment including gas monitors, a ventilation saw and a cutter unit for the "jaws of life."

The parks and recreation department will spend $25,000 for play-ground improvements to three municipal parks: Nature's Acre, Briar Patch and Kramer's Corners. More lighting will be added to the Millennium Trail in addition to facelifts to gazebos at the Civic Centre and fencing for the skills park. Council is setting aside $135,750 for capital equipment purchases that will see the addition of a new half-ton truck, the replacement of a tractor and Gator utility vehicle. The department will draft a recreation master plan at a cost of $60,000. Council has also approved a $491,781 grant to the Petawawa Public Library, which experienced a deficit this year.

Petawawa will be kicking $238,000 towards the $3.7 million methane collection facility at the Ottawa Valley Waste Recovery Centre. The town's total share will eventually be $737,000. The town will maintain grant support for Festival Hall, the Petawawa Heritage Society, Silver Threads Seniors Club and the Upper Ottawa Valley Medical Recruitment Committee.

The budget contains $3.2 million in estimates for the waterworks and $2.2 million in estimates for the sewage system. The water flat rate for residential use has been set at $239.58, while the commercial rate is $278.18. The sewage flat rate for residential users is $260.48, while the commercial rate is $307.08. The town will also maintain a general reserve of $1.95 million.

Sean Chase is a Daily Observer reporter

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Property Tax

Tuesday, May 4, 2010