Comment 108545

By J (registered) | Posted January 29, 2015 at 13:54:45 in reply to Comment 108541

while I fully support this from a policy perspective, this will alienate Brenda Johnson, whose constituents will seethe at the idea. Maybe instead of removing area rating the idea should be confined to the truly rural wards, 11, 12, 14 and 15?

On the other hand, thinking about it in context of the article by Ted Mitchell re perverse incentives, the problem is we have too much of a uniform and heavy handed system of DCs and property taxes. The reality should be a form of area rating that actually charges less dense areas more to reflect the higher costs of servicing. Same with DCs. Instead by pretending neutrality we do exactly the opposite and incentivize sprawl.

So really the issue is between practicality and policy. Merulla's motion isn't really great policy and will definitely start a war. So maybe the better solution from a revenue perspective is to start with DCs, which your average person could care less about, rather than a fruitless fight about area rating.

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