Municipalities Matter

Now that students have an understanding of the community’s past and present, they can begin to consider the ways they can shape a community’s future. This lesson will help students understand local government’s scope of power. Knowing what local government can and cannot do will better equip students to influence the political system.

Suggested Curriculum Links
A primary intent of this unit is for students to construct their own plan for personal involvement in the local political system. This cannot be accomplished without knowing what government is, and the scope of power that each level of government holds. As such, this lesson is an essential step towards achieving several Indicators within the following Outcomes:

• Power and Authority 8.3 and 8.4; and
• Resources and Wealth 8.1.

Teacher's Background Information: Property Taxes

Although there is some flow of money through federal and provincial transfer payments and grants, municipalities are largely responsible for raising their own revenue. For municipalities, property taxes are the main source of money. This money is used to pay for services such as public libraries, local roads and parks, and transit.

Property taxes are based on the appraised market value of a particular piece of property. Owners of higher-valued property will pay higher taxes than owners of lower-valued property. This is consistent with a long-standing principle that citizens should contribute to society based on their ability to pay. This helps ensure greater income equality while providing all citizens with equitable access to quality public services.

The term used for municipal property taxes is mill rate. The mill rate is the dollars of tax placed on $1000 of property value. For example, if a municipality’s mill rate is 20, that means that the property owner will pay $20 of tax for every $1000 of value of their property. Municipalities establish the mill rate by taking into account how much revenue needs to be raised to provide quality public services.

Different classes of property—such as residential, commercial and industrial—are subject to different levels of taxation. Generally, businesses will pay higher taxes on property than home owners because unlike citizens who use their property primarily for shelter, businesses use their property primarily to make money. That being said, in many municipalities in Saskatchewan the property tax burden has been drifting from commercial and industrial property to residential property.

For an in-depth discussion of the foundational purpose of government, including concept and principles of taxation in Canadian society, check out Lessons 1.2 (Why Laws?), 1.3 (Public Goods and Services) and 1.4 (Paying for Government Services) in Our Government, Our Election Second Edition.

Procedure
1. Discuss the purpose of government in our lives. The Island Simulation in The Rule of Law is an excellent activity for introducing this concept to students.

2. Bridge discussion to reading of What Does Government Do?
KEY QUESTIONS

• What are public goods and services?
• What are some examples of the public goods and services provided by government?
• What are some examples of laws governing our behaviour?

3. Using the chalkboard make three columns for use in a class discussion:

• In the first column list basic services or facilities that students think should be available to the community.
• In the second column list services and facilities that are actually available in the community.
• In the third column list services that would be nice to have, but may not be considered essential to the community.

Have students discuss and debate what public services they consider important for a healthy, happy society.

4. Explain how municipal services are paid for largely through property taxes. Discuss how the amount of public services available is dependent upon the amount of money the municipality can raise.
KEY QUESTIONS

• What does society gain from public goods and services? What does society lose when governments cut public goods and services?
• What does society gain by paying taxes? What does society lose by paying taxes?
• Is paying tax worth the benefit of having public goods and services?

Further Exploration
5. Crosswalk Cred is useful for illustrating the role of municipal government. It explores how they create and maintain both the laws and the physical infrastructure that support walkable communities.

6. To pursue discussions around the relationship between taxation and public expenditures, check out “Taxes and Public Expenditure: Springfield’s Bear Patrol” in Learning about Law with The Simpsons.