2.         non Refundable Tax Credit for Public Transit

 

Crédit d’impôt non remboursable pour le transport en commun

 

 

COMMITTEE RECOMMENDATION

 

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.

 

 

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

 

 

Contact / Personne-ressource : Councillor / Conseiller Alex Cullen
580-2477, Alex.Cullen@ottawa.ca

 

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

 

 

REPORT RECOMMENDATION

 

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.

 

 

RECOMMANDATION DU RAPPORT

 

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.

 

 

BACKGROUND

 

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.

 

 

RURAL IMPLICATIONS

 

N/A

 

 

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).

 

 

DISPOSITION

 

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