CBRM Equalization Calculator

What would happen if we increased provincial funding to Cape Breton? How would changes to the equalization transfer we receive and service fees we pay affect our tax rates?

Note: Sydney is used as an example in the summary. On desktop/laptop computers, you can see the tax savings for other communities in the CBRM. See below for disclosures on method used to create estimates and its inaccuracies.
The calculations will begin as soon as you change any value. If you're using a smartphone or tablet, you will need to scroll down a bit farther to see the results. Move the sliders and see what happens.

How much do we get?

How much do we pay back to the province?

Apply the change to home tax rates by what percentage?

The rest will be applied to commercial taxes.

What's the approximate tax value (capped) of your home?

 
 
 
 

What is Equalization all about?

Are you new to the topic of Equalization Fairness in Cape Breton? Here's a great introduction to get you started.
   
Method of Estimation and Inaccuracies
  • The model creates estimates only. There will be some inaccuracies due to insufficient or up-to-date data availability.
  • A significant source of error is the method for estimating the size of the total tax base for (i) residential, and (ii) commercial, using Sydney rates. Obtaining actual data will improve accuracy here.
  • The model is intended to demonstrate how changing the level of Equalization transfer and provincial service fees to/from the CBRM has a direct impact on our tax rates.
  • The estimate summary is based on Sydney tax rate data, and focuses on the residential and commercial tax base only. Other types of tax revenues are ignored (resource/forest, and grants in lieu).
  • The effects of tax accounts in arrears are not addressed. Specifically, tax rates must be higher than necessary on the total value of taxable properties within the CBRM in order to account for tax accounts in arrears or that are uncollectable.
  • Residential tax rates vary. For simplified estimating, any reduction in rate must be applied to all communities equally.
  • Total taxes collected are comprised from revenue from different tax zones, at different rates (both commercial and residential).
  • You can see the CBRM tax rates here.
  • The model makes no attempt to accomodate any Tax Cap effects. The CBRM tax data was generated with the tax cap in place.
  • The tax base data used was provided by the CBRM Chief Financial Officer (August 2018).
  • $32,423,513 in Commercial (Business) Tax Base was collected.
  • $70,876,029 in Residential (Homes) Tax Base was collected.
  • The presumption for the model is that all increased transfer or savings on provincial service fees will be applied to reduce taxes.
  • In reality, any increased revenue can be used in a variety of ways: lowering taxes, increasing operational or capital budget expenditures, or lowering long-term debt. The model does not provide an option to pay down long-term debt.
  • The model assumes that the current CBRM budget (operational and capital) remains unchanged.