St. John’s Mayor Danny Breen highlights how the city missed out on financial gains from the 2025 Canada Games, which generated $79.9 million in economic activity. Sport Tourism Canada reports $40.1 million in visitor spending, yet revenue from HST flowed to provincial and federal governments rather than the municipality.
Property Taxes Burden City Revenue
Property taxes account for 75% of the city’s revenue. Mayor Breen describes this system as regressive, noting it relies on house values rather than residents’ ability to pay. “One of the problems with this type of municipal financing is property assessments are a regressive form of taxation. It doesn’t indicate the ability to pay for people within those houses. It’s based on the value of the houses,” Breen stated.
The city held property tax rates steady in its 2026 budget, but rising assessments increased bills for many homeowners.
Push for HST Revenue Sharing
Breen advocates sharing a portion of HST with municipalities to lessen dependence on property taxes. “It wouldn’t replace it. It would reduce it. It would also give the opportunity for municipalities to get more benefit from economic development,” he explained. Quebec and Saskatchewan already implement HST-sharing models, though Saskatchewan municipalities view theirs as insufficient.
Wider Criticism of Municipal Tax Systems
Breen joins other leaders in challenging property taxes. Saskatoon Mayor Cynthia Block recently labeled it a holdover from the “era of the horse and buggy.” The Federation of Canadian Municipalities urges a new federal fiscal framework for cities.
MNL CEO Sees Hope for Change
Rob Nolan, CEO of Municipalities Newfoundland and Labrador, expresses optimism for reforms at provincial and federal levels. “We need municipalities to be properly supported in order to get that work done that the feds want to prioritize and the province want to prioritize,” Nolan said.
Newfoundland and Labrador faces declining and aging populations, with fixed or escalating community costs. Nolan emphasizes recalibrating existing revenue shares, not imposing new taxes. “It’s really to recalibrate the revenue sharing or the share of the fiscal finances that we have in province and federally,” he added.
Despite the province’s projected $948 million deficit and existing municipal grants, a small HST share could ease provincial burdens by shifting more infrastructure and transportation costs to cities.
A federal finance department spokesperson affirms commitment to collaborating with provinces, territories, and municipalities on a fair tax system but declines to speculate on policy shifts.
