- The Vancouver Fair Tax Coalition, representing more than 43,000 businesses, is a non-partisan group formed to raise awareness of the high municipal property taxes paid by Vancouver businesses. The coalition is seeking the City of Vancouver’s commitment to permanently bring these taxes into line with regional and national averages.
- The municipal property tax rate for Vancouver businesses is the highest of all municipalities in the Lower Mainland and the highest among major cities across Canada.
- In Vancouver, businesses pay municipal property taxes at nearly six times the rate paid by residents – roughly double most neighbouring municipalities as well as double the national average.
- In 1983, the Vancouver municipal property tax ratio for businesses compared to residents was 2.6:1. By 2005, this ratio had risen to 5.9:1. The 2007 tax ratio has fallen to 5.5:1.
- The 2007 average tax ratio for businesses to residents in the Lower Mainland is 3.25:1. The average ratio nationally is 2.65:1.
- Municipal property taxes pay for city services such as garbage pickup and recycling, utilities, policing, fire protection and local improvements.
- A 2006 study carried out by the City of Vancouver estimated residential properties pay $0.56 for every $1 of city services they consume. Businesses, in contrast, pay $2.42 for every $1 of services consumed.
- There are seven property classes: Class 1 is residential; Class 2 is utilities; Class 4 is major industry; Class 5 is light industry; Class 6 is business; Class 8 is seasonal; and Class 9 is farm land.
- Vancouver residential properties have grown exponentially and account for 91 per cent of the total properties. In contrast, business growth has flattened and the tax share has not been adjusted to account for this change.
- In 2007, the commercial class paid 52% of municipal property taxes and residential class paid 48%.
- In 1993, the City of Vancouver committed to shifting one per cent of the municipal property tax burden annually from business to residential. This was only done in 1994, 1995, 1997 and 2000, with a 0.5% shift in 2003. The most recent changes were a 1% shift in 2006, the equivalent of a 2.3% shift in 2007 by freezing tax levels, and a 1% shift for 2008. The majority on council voted to apply the 1% shift in each of the next five years until the commercial sector pays 48% and residents pay 52% of the tax share.
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