Several municipalities also noted substantial indirect costs from the carbon tax, including higher rates from vendors that serve the municipality – like gravel truck drivers and road repair providers – passing increased fuel prices onto local governments. The rising price for materials and goods like traffic lights, steel, lumber, and cement, due to higher transportation costs are also hitting the bottom line for local governments. The City of Grande Prairie paid out $89 million in goods and services in 2023, and the indirect costs of the carbon tax “have had an inflationary impact
on those expenses” in addition to the direct costs of the tax.
international trade, said this issue is nationwide.
In her press conference announcing Alberta’s challenge to the federal carbon tax on Oct. 29, 2024, Premier Danielle Smith addressed the pressures the carbon tax places on municipal bottom lines. “In 2023 alone, the City of Calgary could have hired an additional 112 police officers or firefighters for the amount they sent to Ottawa for the carbon tax,” she said. In a statement issued on Oct. 7, 2024, Ontario Conservative MP Ryan Williams, shadow minister for
“In Belleville, Ontario, the impact of the carbon tax is particularly notable. The city faces an extra $410,000 annually in costs – a burden that directly translates to an increase of 0.37 percent on residents’ property tax bills.” There is no rebate yet provided on retail carbon pricing for towns, cities, and counties. In October, the council in Belleville passed a motion asking the federal government to return in full all carbon taxes paid by municipalities in Canada.
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