Municipalities depend on a mix of residential, commercial, and industrial taxes to deliver essential services and maintain infrastructure. Among these, a robust industrial tax base provides stable, high-yield revenue with relatively low servicing costs. Unfortunately, Prince Edward County (PEC) lacks such a base—and the consequences are increasingly visible in its budget.
What Is an Industrial Tax Base and Why Does It Matter?
Industrial properties include factories, processing plants, and logistics facilities. These properties are taxed at a higher rate than residential properties, generate local jobs, and don’t require the same level of municipal servicing (e.g., recreation or schooling). Municipalities with a balanced tax base can better:
- Stabilize property tax rates
- Invest in long-term infrastructure
- Withstand economic shocks
Without this balance, municipalities like PEC must rely overwhelmingly on residential taxpayers, which can lead to higher rates, deferred infrastructure, and reduced flexibility.
Prince Edward County’s Industrial Revenue: Stuck in Neutral
While neighboring municipalities have expanded their industrial footprint, PEC’s industrial tax revenues remain among the lowest in its peer group.
2024 Industrial Tax Revenue by Municipality
| Municipality | 2024 Industrial Tax Revenue ($M) |
|---|---|
| Prince Edward County | 0.245 |
| Belleville | 6.00 |
| Quinte West | 5.20 |
| Northumberland County | 3.50 |
| Kawartha Lakes | 2.00 |
| Greater Napanee | 1.10 |
Source: 2024 municipal budgets
PEC’s 2024 industrial revenue stands at $245,000—barely 4% of Belleville’s and less than 5% of Quinte West’s. This is despite facing similar infrastructure and service demands from tourism and population growth.
2024 Industrial Tax Revenue Comparison – showing how Prince Edward County’s industrial tax revenue ($245K) significantly lags behind municipalities like Belleville, Quinte West, and Northumberland County.
Historical Industrial Revenue – Prince Edward County (2019–2024) – illustrating very modest growth over six years, from $190K in 2019 to $245K in 2024.
Historical Revenue: Minimal Growth Over Time
From 2019 to 2024, PEC’s industrial revenue increased only modestly—from $190K to $245K. This 29% increase over six years is far below inflation and far below the growth in residential demand and capital spending.
What’s Driving the Gap?
- Limited industrial zoning and business park availability
- Focus on tourism and agriculture, without a parallel industrial strategy
- Lack of regional coordination on industrial attraction
- No municipal accommodation tax (MAT) or alternative visitor revenue
What Can Be Done
- Expand and service industrial land – especially near major transportation corridors like Hwy 401 or County Rd 49.
- Introduce a Municipal Accommodation Tax (MAT) to recover costs from tourism.
- Offer industrial incentives – including development charge relief, infrastructure grants, and expedited approvals.
- Create partnerships with regional economic development bodies to co-market land and attract anchor tenants.
- Separate residential and economic development goals – ensuring residential growth does not crowd out space for industrial uses.
Conclusion
Prince Edward County’s revenue structure is fundamentally imbalanced. Without a stronger industrial base, the County will remain overly reliant on residential taxes, limiting its ability to fund infrastructure, economic development, and quality public services.
The solution isn’t to abandon tourism or agriculture—it’s to diversify. A strategic, regionally coordinated effort to build out an industrial tax base could provide the long-term fiscal sustainability PEC urgently needs.