Business in Vancouver
September 25-October 1, 2007
Issue 935
Page: 2
Byline: Glen Korstrom
Business calls city property tax commission report “a great start”
But property tax inequity still far from resolved, says Vancouver Fair Tax Coalition
The Vancouver Fair Tax Coalition wants to reverse the municipal tax burden borne by businesses and residents in the City of Vancouver.
VFTC activists such as co-chairman Bob Laurie would love businesses to pay 45% of Vancouver property taxes instead of the 55% that they paid last year.
But Laurie accepts that the Vancouver Property Tax Policy Review Commission final report presented September 18 to Vancouver city council is a step in the right direction.
“It’s a little bit like Goldilocks: not too hot, not too cold,” Laurie said. “But it’s a great start.”
The commission recommended that the city shift 1% of the property tax burden from business to residents each year until business pays 48%.
Laurie, who questioned the rationale behind the 48% target, pointed to a recent City of Vancouver survey that estimated residential property owners pay $0.56 for every $1 of city services they consume, while businesses pay $2.42.
Even homeowners active in residents’ associations believe those charges are disproportionate.
Dunbar Residents Association co-chairman George Pinch stressed that his association has not discussed the commission’s recommendations but that he believes more of a balance is in order.
“Businesses should not be taxed so heavily just so residents can carry on paying a low [tax] rate,” he said. “That said, I think our taxes are plenty high enough.”
Homeowners will get a chance to voice their opinions on the commission’s report during a lengthy public consultation process that has yet to be finalized but will likely take place over several months.
Still, it appears most of council supports the general direction of the commission’s recommendations.
Council was armed with an interim report from the commission in March when councillors voted to raise residential property taxes 3.98% while freezing business property taxes. Residents will consequently pay 47.3% of municipal property taxes in Vancouver this year; business owners will pay 52.7%.
Laurie, however, fears councillors will wilt under homeowner pressure. “Residents vote and business has no vote. They vote with their feet by going to the suburbs or by going out of business.”
gkorstrom@biv.com |
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