This website uses cookies to ensure you have the best experience. Learn more

Mitigating Litigation Risk In New Municipal Revenue Streams

999 words - 4 pages

Municipalities are finding it increasingly difficult to fund the growing cost of local services and other municipal operations. Financial support from higher levels of government is limited, while increases in property taxes often face stiff resistance from the electorate. While certain municipalities have been given special powers to assess and collect tax other than just property taxes, most municipalities must rely on property taxes as their principal means of funding many of the services they provide.
Under these circumstances, most local governments have been compelled to consider user fees and regulatory charges to meet the growing cost of, and demand for, municipal services. Implementing new fees and charges requires special care as they are vulnerable to court challenges alleging that they are in fact taxes and therefore beyond the power of most municipalities to assess or collect. The cost and distraction of litigation is something every local government tries to avoid.
Fortunately, when properly implemented, user fees and regulatory charges are within the statutory authority of a municipality to enact. Importantly, the courts have provided guidance as to what constitutes a permissible user fee and regulatory charge and what is required to defend a legal challenge alleging a fee or charge is a tax.
In Lawson v. Interior Tree Fruit and Vegetable Committee of Direction [1931] SCR 357, the Supreme Court of Canada established a foundation for this discussion by pronouncing that taxes met the criteria of being:
• Enforceable by law;
• Imposed under the authority of the legislature;
• Levied by a public body; and
• Intended for a public purpose
On their own, however, the above criteria are not helpful in distinguishing taxes from permissible fees and charges, which may also meet all of the above criteria. In later cases, the Supreme Court went on to further differentiate taxes, fees, and regulatory charges.
In 620 Connaught Ltd. v. Canada (Attorney General), 2008 SCC 7, (“Connaught”) the Supreme Court of Canada established that:
19 It will be useful to first differentiate a regulatory charge from a user fee. A user fee, by definition, is a fee charged by the government for the use of government services or facilities. In the case of user fees, as stated by this Court in Eurig, there must be a clear nexus between the quantum charged and the cost to the government of providing such services or facilities. The fees charged cannot exceed the cost to the government of providing the services or facilities. However, "courts will not insist that fees correspond precisely to the cost of the relevant service. As long as a reasonable connection is shown between the cost of the service provided and the amount charged, that will suffice" (see Eurig, at para. 22).
The court does not insist on an exact balance between cost and fee but rather, looks for a “reasonable connection”. Accordingly,...


Urban Problems in Toronto Essay

1679 words - 7 pages a rate of 40 per cent over a twelve-year period boom 1988 to 1999 (The state, 2001).The underlying problems remain unaddressed. Poverty in Toronto is on the increase--8.3 per cent in the five years from 1995 to 1999, even as the city's economy was experiencing a boom (Kalinowski, 2002). Economic policy shifts and downloading of services by higher levels of government without commensurate increase in municipal revenue sources (Pockets, 2002) have

Right time to sell Chevron Essay

1835 words - 8 pages to see a similar picture, with capital investments, although being curtailed, would still overcome the positive cash inflows, which wouldn’t surprise most analysts to expect further erosion in the financial position of the big oil company and a further precipitation in their stock’s value post CVX earnings release. The obvious reasons for the fall in the CVX earnings are crashing revenue streams which as a percentage reflect a drop of 30% in

Waste Problem and Management in Insular and Isolated Systems. Case Study in the Canary Islands (Spain)

1318 words - 6 pages , health, livestock, agriculture, forestry and dangerous. In regard to urban, establishes the following basic objectives: • Insularity of urban waste management (collection, transportation, treatment and disposal) • Integration with other waste streams (e.g., processing of plastics from greenhouses in conjunction with those from urban waste) • Recovery of hazardous waste in the municipal waste • Recovery and valuation of those waste fractions that

Fiancial Satement

912 words - 4 pages concerning about taxes, customs, new laws, and others. In conclusion, the accurate way to obtain a width view of the company has to be complemented by a study of the marketplace, where we have to take in consideration factors like existent investor situation, political impact, community support, employee, customer, suppliers, litigation, and every relevant aspect that satisfy the investor when has to make a decision. 3. When analyzing the Balance

The Municipal Solid Waste Dilemma

1842 words - 7 pages entirely changes the composition of the waste and converts it into separable components of sterilized organic and inorganic materials. This new process will reduce costs economically, environmentally, and will be better off for humans in the long run. This type of process may be implemented nationwide and eventually worldwide. New approaches to managing municipal solid waste are a solution. Such acts include source reduction and increasing

Risks of Non-Compliance in Corporate Governance

2295 words - 9 pages before the issues create costly and reputation challenges, in the forms of conflicts of interest on the board, litigation, and compensation. Thus ensuring effective compliance against the possible repercussions associated with non-compliance within their corporate governance structure, and therefore mitigating risks.Sheila Omumu: Affiliated Computer Services (ACS)- Non-Compliance Risk and Committee ManagementAffiliated Computer Services (ACS) is an


3362 words - 13 pages related spending for tax collection process. This cost would be used for hiring new officers and providing facilities and infrastructure to support the tax collection process. The worst case scenario that could happen is that the collection cost will be higher than the collection revenue. Here comes the question about efficiency aspect in this tax collection under municipal government authority. Third, fiscal disparity will arise among the

The Importance of Municipal Government

628 words - 3 pages road maintenance to schools to parks and recreation services. It is up to the local government to formulate a budget for all tax income, from both sales tax and property tax. Government executives must carefully predict expenses, calculate the approximate revenue, and, if there is extra money, decide if it should be saved or used on a new park, an extended bike path, or improvements in water treatment, among numerous other options. Most importantly

Municipal Budgeting and Revenue

2493 words - 10 pages Governmental Budgeting. Chicago: Municipal Finance Officers Association of the US and Canada, 1981. MacManus, Susan A., Revenue Patterns in US Cities and Suburbs: A Comparative Analysis. New York: Praeger Publishers, 1978. National League of Cities, City Fiscal Conditions in 1999. Washington D.C.: National League of Cities, 1999. Swartz, Thomas R., Urban Finance Under Siege. Armonk: M.E. Sharpe, 1993.

Future of "Big Pharma"

2421 words - 10 pages Subject: Pharmaceutical Industry. - "Big Pharma"Problem: The main problem is more than $80 billion worth of blockbuster drugs faces patent expiration by 2008. These drugs risk losing 80% or greater market share when generic copies hit the market. With the industry developing fewer blockbuster drugs today, it is of grave importance that pharmaceutical companies protect those drugs whose revenue streams will enable them to keep developing new

Business Impact Analysis

774 words - 4 pages lost based on having too many employees and not enough work. The inverse is also important as you could have a small number of employees with a lot of business and then customer satisfaction suffers, driving profits down. All the equipment owned as well as the facility are considered assets in this situation. Potential revenue is also included in this figure. Without changing anything, there would be no mitigating factors so an analysis would

Similar Essays

The Risk And Benefit Of Starting New Business In Britain

1756 words - 8 pages and Britain is far from finish, those new businesses also have to receive some risks that they are hardly to avoid. So it backs to the entrepreneurs themselves to consider the risk and benefit of starting a new business in Britain these days. With the right consideration, great strategy and bit of luck, their ideas and fresh innovation will more likely to be their new cash machine. The first risk that an entrepreneur must deal with when starting

Entire Strategy For Hih Tech In New Zealand Include Business Model, Risk Assessment And Market Strategy

2779 words - 11 pages range to suit customer's budget.We committed to providing market leading and potential brands of computer parts at lowest prices.Promote the fast service and fast delivery to speed up business processes.We will play an important part in PC components retailer of New Zealand with good reputation.We will cater to the needs of the customer by providing a complete solution for all their needs2.3 Products (Value being offered)Main products to be sold

Municipal Bonds Why To Invest In Them

1299 words - 5 pages bonds. General obligation bonds (GO bonds) are unsecured municipal bonds that finance municipal operations. They have maturities of 10 years or more. The creditworthiness of the issuing city or state is the only "risk-guard" they provide. GO bonds finance projects that do not produce revenue in the traditional sense. The municipal issuer (such as a city) repays the bonds with funds raised by feeds or property sales. Sometimes, issuers of the GO

Pharamaceutical Industry Patent Assessment Essay

1080 words - 5 pages strategic direction may see companies seek new business partners through acquisitions and mergers. I anticipate some will increased their market in branded pharmaceuticals mitigating risk while waiting for new medicine patents to be approved and allowing current industry conditions to become clearer. Successful companies will be those that have diversified strategies enabling a competitive advantage. The resources available for companies will