Most Yukoners who pay rent would be eligible for a $600 tax credit under a Liberal government, Liberal election candidates Christie Richardson and Dan Curtis announced this morning.

Under the proposal, all renters eligible for the federal northern living allowance would be eligible for the credit, they explained during a press conference at the Liberals' campaign headquarters.

The two Riverdale candidates – Curtis for Riverdale South and Richardson for Riverdale North – said the initiative would cost the territory approximately $2.5 million annually.

The announcement comes 10 days after the Liberals promised to double the annual grant for homeowners at an annual cost of $3.2 million if they're successful in the upcoming territorial election.

Both initiatives, said the candidates, are meant to help ease the bite from what they described as a territorial housing crisis borne out of inaction by the governing Yukon Party over the last nine years.

"We aim to have the tax credit in place for the 2011 tax year,” Richardson said.

Providing the credit is directed at the issue of affordability, one of two principles the party plans to address in its housing strategy, along with access to housing, she added.

Announcements regarding more initiatives under the Liberal housing strategy will be forthcoming, Richardson and Curtis emphasized.

The candidate for Riverdale South explained the annual cost of $2.5 million is based on having approximately 4,000 rental suites in the Yukon, according to the 2006 statistics generated by the last national census.

Curtis said if renters are eligible for the federal tax credit for living in the North, they would be eligible for the territorial tax credit for rent.

Both Richardson and Curtis said the Yukon can afford it. The current government, Richardson said, speaks of a financial surplus. Even if Ottawa tightens up its transfer payments to the Yukon, as some fear, Richardson is certain the tax credit makes financial sense.

"The Yukon rental tax credit is an affordable tax credit,” the Riverdale North candidate said.

Curtis suggested the credit could even reduce the Yukon's dependency on the federal transfer payment by encouraging a larger number of transients working in the Yukon to put down roots in the territory for themselves and their families.

Instead of leaving the territory to travel home on days off during their regular shift rotations, increased affordability may convince some to settle in the Yukon, he said.

A higher population, he and Richardson agreed, means more spending, leading to a stronger local economy and less dependency on Ottawa.

The candidates explained the tax credit will ease the burden of increasing rents, just as doubling grants for homeowners would take the sting out of the steadily rising taxes property owners have experienced in recent years.

Liberal Leader Arthur Mitchell announced Aug. 12 his party would double the maximum grant for homeowners from $450 to $900, and from $500 to $1,000 for seniors, if it's elected this fall. The election must be called by mid-October.

By Chuck Tobin

Star Reporter