2017 Federal Budget Proposed Removal of One-third Non-taxable Expense Allowance

Whereas the 2017 federal budget proposes to remove the tax exemptions beginning in 2019 for the 13 non-accountable expense allowances paid to members of provincial and territorial legislative assemblies and to certain municipal office-holders, including mayors, councillors, directors and alternate directors; And whereas the impact of this change is that the full amount of remuneration will now be subject to income taxes and Canada Pension Plan CPP contributions and, resultantly, may be considered a disincentive to the holding of public office: Therefore be it resolved that UBCM urge the federal government to abandon its proposal to tax the 13 non-accountable expense allowances paid to members of provincial and territorial legislative assemblies and to certain municipal office-holders.