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Elimination of federal tax exemption policy changes result in City Council compensation adjustment

November 26, 2018 4:52 PM
(Red Deer, Alberta)

The federal government’s decision to eliminate tax exemptions for all elected officials across Canada takes effect in 2019; therefore, Red Deer City Council approved an adjustment to their gross salaries to preserve current net pay. With the adjustment, their take-home pay will remain unchanged from 2018.

Approval for the adjustment came after an amendment to the Income Tax Act during the 2017 Federal Budget, removing what was formerly considered a tax exemption from an elected official’s salary. Until now, one-third of an elected official’s salary across Canada was considered tax exempt; however, changes that take effect on January 1, 2019, mean this exemption is no longer available, which would result in mayor and city council taking home less salary next year.

“Today’s decision to adjust Mayor and City Council salaries was done in an effort to respond to the federal legislation change and deletion of the tax-free allowance that takes effect on January 1, 2019,” said Mayor Tara Veer. “City Council is committed to remaining transparent in its finances and has made an adjustment only to neutralize the federal legislated change, similar to communities in our region, across the province and the country.”

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For more information, please contact:

Kristy Svoboda                                               
Human Resources Director                         
The City of Red Deer
403-356-8906

Communications & Strategic Planning
The City of Red Deer
403-342-8147    

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