You and I may feel the pinch of the new Provincial carbon tax when it kicks in in January, but we could feel it again at the municipal level.

Unlike individuals, Cities, Towns and other municipalities won't be getting rebates, and as Nanton Mayor Rick Everett says that could lead to higher taxes at the local level.

"If this continues, we're not sure what's going to happen to the ability of small communities like ourselves to be able to continue to provide services to our citizens that they currently expect, and pay for through taxation. So if we lose the money, or pay for it through the carbon tax and do not get any of that back, it will definitely have an impact, there's no question about that. We're just trying to decide what that impact is going to be."

Everett says the choices are simple, cut services, look for more government grants or raise taxes.

He also says his town will lose money when you factor in the new carbon tax, against what the town gets in Municipal Sustainability Initiative or MSI grants from the Province.