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Fort St. John
Monday, October 14, 2019
9924 101 ave Fort St. John, B.C.
Home News Council to vote on pay increase after federal tax exemption cancelled

Council to vote on pay increase after federal tax exemption cancelled

FORT ST. JOHN, B.C. – Fort St. John City Council will vote on Monday if they get a raise after the Federal Government cut the tax exemption for elected officials.

As of January 1, 2019, the Federal Government has a removed a 33% tax exemption for election officials.  With the removal of the tax exemption, municipally elected officials will now receive less take-home pay.

City staff have proposed that Council pay be increased to offset the tax change.  The proposal if approved on Monday, would see the Mayor’s salary increase to $89,130 compared to $83,430.  Each Councillor would see their income change from $31,286 to $32,850.

The report says, “Elected officials who are currently paying income tax on only two-thirds of their total compensation (salary plus allowances) will lose that benefit. As of January 1, 2019, all compensation will be taxed as full income and be subject to deductions for Canada Pension Plan (CPP) contributions. The Mayor’s tax obligation would increase by 65%, and Councillors’ tax obligation would increase by 50%. This, of course, will significantly decrease the after-tax compensation or take-home pay for elected municipal officials.”

The chart below shows the difference in take-home pay for the members Council will the tax change.

Also included in the remuneration change is a cost of living increase.  If this change is approved, it will cost the City $18,525 in 2019.

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