© Town of Collingwood
Any increases in parking rates in Charlottetown can't be blamed on the harmonized sales tax, says Finance Minister Wes Sheridan.
Sheridan was responding to the city's recent decision to increase its parking fees because HST will be charged on the rates.
But Sheridan said municipalities will be compensated for the HST and the options were to either do so through a rebate or inside a new funding formula.
"After months of discussion and talk with the Federation of Municipalities, the federation has asked us to it inside the funding formula," he said.
Charlottetown city council recently passed a resolution to increase parking rates at its parkades and on parking metres.
The monthly rates at the three parkades vary, but the cost of parking at a metre will be going up from $1 per hour to $1.25.
Sheridan said the province will soon release a draft of the new Municipalities Act to the municipalities.
"They have been partnering with us for over two years putting it together," he said.
A separate committee has been working on a municipal funding agreement to go along with the new act, Sheridan said.
"Inside that act is where the municipalities would like to be compensated for the harmonization."
Sheridan said that funding could offset the HST's impact on the City of Charlottetown.
"If they're going to raise their rates inside a parkade or at the parking metres it's not going to be because of harmonization," he said.