The City Above Toronto will become the first in Canada to launch its own local credit card program. The idea: spend your money with area businesses and receive a cut in your property taxes. The "MuniCard", as it's called, will only be available to residents of Vaughan and they'll have a while to get used to the idea. The first city in North America to try the program has signed up for the 10-year experiment that already has other Ontario towns looking to copy it.
The idea, which was first pitched by Canadian consulting company Civic Strategies back in 2002, offers users discounts of up to 25 per cent on items they purchase locally. The hope is that the more they use the plastic, the more they'll be able to take off their property taxes - or eventually, even their utility bills. There will be no fees to obtain one and they can be used just like any regular card. The scheme is backed by the National Bank of Canada and works by having the financial institution pay a portion of the owner's city taxes instead of handing out the more traditional points. "It's a tangible and true return (to the customer)," explains Civic Strategies's Giorgio Gianniotti. "Consumers are confused about the points. They don't have any idea of how much they're worth, what they can buy, until the moment of purchase. There are usually restrictions so that the credit card owner is compelled not to use them."
And though the name of Vaughan will be splashed across the front of the card, it won't cost the municipality or its residents a dime - any fees are managed by the company using a portion of the revenues. Other than tempting consumers with the usual hazard of debt, there doesn't appear to be a downside to the idea. Residents see a potential reduction in the ever rising taxes they pay, as well as getting a possible discount for the items they're buying. And local businesses benefit by attracting consumers who have more reason to spend in their hometown.
That may be one reason the City of Oshawa plans to issue a similar card early next year. But so far, Toronto - where high property taxes, user fees and service cuts have made headlines in recent months - hasn't indicated whether it has any plans to follow suit.
see details at Civic Strategies and GE Money Trust Company launch City of Vaughan MuniCard(TM) MasterCard(R) with rewards that can help pay municipal property taxes
No comments:
Post a Comment