MUNICIPALITIES RECEIVE CLIMATE ACTION INCENTIVE

PENTICTON – The Province will offset the carbon tax for local governments who have committed to become carbon neutral by 2012, Premier Gordon Campbell announced today. “The Climate Action Revenue Incentive program will be a new conditional grant equal to what local governments pay in the carbon tax, with only one string attached – to be eligible, communities must sign onto the Climate Action Charter and commit to becoming carbon-neutral by 2012,” said Premier Campbell. “If communities do that, and publicly report on their plan and progress in meeting that goal, they will be eligible to receive a grant equal to 100 per cent of their carbon tax costs.” To date, 133 local governments have signed the B.C. Climate Action Charter, pledging to become carbon-neutral by 2012. The Province will work in partnership with the UBCM to develop a framework to accurately track what local governments pay annually in carbon tax. For the current year, the carbon emissions tax municipalities pay will have to be estimated. Subject to legislative approval next February, municipalities will receive a grant by March 31. For next year and future years, the Province will provide grants based on the previous year’s actual costs so that local governments can recover every penny they pay in carbon tax, without adding any burden to the property tax. Local governments will be required to report annually on steps they are taking to become carbon-neutral by 2012. A similar program will be developed with boards of education.
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CBC News B.C.'s municipal leaders ask for carbon tax relief

B.C.'s municipal leaders asked the provincial government to ease the cost of the controversial carbon tax at the annual convention of the Union of B.C. Municipalities in Penticton.Wednesday. It took an hour of heated debate for the delegates from around B.C. to pass a resolution asking the Liberal government to reduce the financial impact of the tax and create incentives for small communities to reduce greenhouse gases. Penticton Mayor Jake Kimberley feared that the tax, if left unchanged, would hit municipal budgets hard. "We need some help and financial help," said Kimberley after the vote. The provincial carbon tax introduced this summer levies a 2.4 cents per litre tax on gasoline and a similar tax on all other carbon-based fuels sold in B.C. The government promised the tax will be used to reduce income and business taxes.Many delegates said they want the government to start taxing polluters instead.