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What is the Vancouver Fair Tax Coalition?
The Vancouver Fair Tax Coalition (VFTC) is a non-partisan coalition representing more than 43,000 local businesses. VFTC members are concerned about the high municipal property taxes they pay and the inequitable allocation of the tax burden between residential and commercial real estate.
The VFTC is calling on the City of Vancouver to:
- Adopt a principle of fairness for the distribution of property taxes in the city of Vancouver.
- Create a long-term policy for the fair and equitable distribution of property taxes based upon the benefits received by each class.
- Refer to any differential between revenue collected from a class of property and the costs of the benefits received by this class as the subsidy amount.
What is the problem with the current property tax share?
The high business tax rate is a long-standing inequity that needs to be fixed. Vancouver businesses pay property taxes at more than five times the rate of residents and are greatly subsidizing the costs of services consumed by residential properties. This is unfair and unsustainable.
What happens if the tax ratio is not changed?
The current property tax ratio makes it difficult for small businesses to operate. It restricts business owners’ ability to invest in their companies, hire staff and stay competitive. High property taxes are a factor in businesses closing down or relocating to another municipality.
Why is a tax shift necessary?
Local businesses make important contributions to the city’s well being by providing jobs, contributing to social and community causes and building neighbourhoods. Since most Vancouver city councils have chosen not to balance the share of taxes each property class pays, the imbalance has grown over the years. A gradual tax shift from business to residents is a step in ensuring Vancouver remains the most livable city with a vibrant and attractive economy.
What do our municipal property taxes pay for?
Municipal property taxes pay for city services such as garbage and recycling pick-up, utilities, policing, fire protection, libraries and community services.
What has the coalition achieved to date?
Thanks to the support and backing of 27 business organizations, the VFTC has been successful in advocating for a more equitable distribution of property taxes. In the past three years, the majority on city council voted to apply three tax shifts, which has begun to address the problem. However, there is still more work ahead to achieve a permanent and sustainable tax policy for both residents and businesses. |
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