2. non Refundable Tax Credit
for Public Transit Crédit
d’impôt non remboursable pour le transport en commun |
COMMITTEE RECOMMENDATION
Recommandation du Comité
Que le Conseil approuve
qu’une lettre soit envoyée au ministre fédéral des Finances demandant que le
crédit d’impôt non remboursable pour le transport en commun devienne entièrement
remboursable.
DOCUMENTATION
1. Transit Committee report dated 20 January 2010 (ACS2010-CCS-TTC-0001).
Report to / Rapport au:
Council / Conseil
20 January 2010 / le 20 janvier 2010
Submitted by/Soumis par : Transit Committee / Comité du transport en commun
City Wide / À l'échelle de la Ville |
Ref N° / No de réf. :
ACS2010-CCS-TTC-0001 |
SUBJECT: NON REFUNDABLE TAX CREDIT FOR PUBLIC TRANSIT
OBJET: CRÉDIT
D’IMPÔT NON REMBOURSABLE POUR LE TRANSPORT EN COMMUN
That Council approve that a letter be sent to the Federal Minister
of Finance requesting that the Non Refundable Tax Credit for Public Transit be made
fully refundable.
Que le Conseil approuve qu’une lettre soit envoyée au ministre fédéral des
Finances demandant que le crédit d’impôt non remboursable pour le transport en
commun devienne entièrement remboursable.
On 20 January
2010, the Transit Committee agreed
to suspend the Rules of Procedure to consider a Motion from Councillor Cullen
with respect to the above. A copy of the
full Motion is contained in the extract of Draft Minute, shown as Document 1 to
this report.
The Councillor advised that this arose from a joint
request from the Chairs of the Environmental, Poverty Issues and Pedestrian and
Transit Advisory Committees, that the Mayor write a letter to the Federal
Minister of Finance to request that he consider a change in the 2010 federal
budget to make the Non Refundable Tax Credit for Public Transit, fully
refundable.
DISCUSSION
The Non Refundable Tax Credit was introduced in
2006 by the Government of Canada to help cover the cost of public transit. Because it is a non-refundable tax credit,
anyone who does not have personal income tax owing does not receive the money
in the form of a refund.
As Council considers its 2010 Budget it is
clear that transit fares will rise and this will impact many individuals at
lower income levels for whom public transit is not an option but a necessity. If the credit were made refundable, it would
reduce the cost of transit passes for many low income individuals and students
in Ottawa.
CONSULTATION
No public consultation was undertaken in the preparation of this report.
Transit Services supports this Motion as it enhances the attractiveness of public transit to our residents and helps to build a sustainable community.
LEGAL/RISK MANAGEMENT IMPLICATIONS
There are no legal/risk management impediments to the implementation of this Report's recommendation.
FINANCIAL
IMPLICATIONS
There are no financial implications associated with the report recommendation.
SUPPORTING
DOCUMENTATION
Document 1 Extract of Draft Minute 20 January 2010.
Document 2 E-mail dated 26 November 2009 to the Mayor and Members of Council from the Advisory Committee Chairs (previously circulated and held on file).
If approved by Council, the City Clerk and Solicitor’s office will prepare a letter for the Mayor’s signature to the Federal Minister of Finance.
Document 1
ADDITIONAL ITEMS
POINTS
SUPPLÉMENTAIRES
NON REFUNDABLE TAX CREDIT FOR PUBLIC
TRANSIT
CITY
WIDE / À L'ÉCHELLE DE LA VILLE
Councillor
Cullen referred to an e-mail sent to the Mayor and members of Council on 26
November 2009 from the Chairs of the Environmental, Poverty Issues and
Pedestrian and Transit Advisory Committees, requesting the Mayor to write to the Federal Minister of Finance with a
request that he consider a change in the 2010 federal budget to make the Non
Refundable Tax Credit for Public Transit, fully refundable. The councillor explained
that converting it to a fully refundable tax credit would benefit those who
rely on public transit the most – people of low income.
Moved by C. Leadman
That the Transit Committee approve the addition of this item for
consideration by the Committee at today’s meeting, pursuant to Section 84(3) of
the Procedure By-law (being By-law no. 2006-462).
CARRIED
Moved by A. Cullen
WHEREAS
the Government of Canada offers Canadians a non-refundable tax credit to help
cover the cost of public transit;
WHEREAS
a non-refundable tax credit benefits only those who have personal income tax
owing;
WHEREAS
low income individuals are high transit users but may not be able to access
this non-refundable tax credit due to their low incomes;
WHEREAS
converting this tax credit to a fully refundable tax credit is endorsed by the
City’s Pedestrian and Transit Advisory Committee, the Poverty Issues Advisory
Committee and the Environmental Advisory Committee;
THEREFORE
BE IT RESOLVED that the Transit Committee recommend to Council that a letter be
sent to the Federal Minister of Finance requesting that this tax credit be made
fully refundable.
CARRIED