City staff report ignores business concerns
For Immediate Release: April 18, 2006
Council left to approve property tax increase for Vancouver businesses
Vancouver, BC – Although city council has acknowledged that property taxes on business are too high, they have been given little in the way of options to address this serious problem. In addition, the 2006 Property Taxation: Distribution of the Property Tax Levy report ignores the recommendation of the business community, one of Vancouver’s largest stakeholders.
“The report forces council to choose between doing nothing and doing the bare minimum. The concerns of the business community have been completely ignored. Council has not been given the opportunity to consider or debate our recommendation,” stated Ed Des Roches, Co-Chair of the Vancouver Fair Tax Coalition, which represents the majority of businesses in Vancouver.
Given the high property tax burden on business owners, the coalition recommended that council immediately freeze property taxes for the business sector to 2005 levels to make up for the lack of action over the last few years. In addition, the coalition has asked council to adopt a long-term policy to bring the municipal property tax rate for Vancouver business owners in line with the regional average.
“The coalition’s recommendation would mean an additional $57 tax increase for the average homeowner this year. This works out to 15 cents a day, a small price to pay to keep Vancouver businesses viable in our neighbourhoods,” said Des Roches.
“Since the current tax burden on business owners is so high, it is unconscionable that they would receive another tax increase this year,” said Des Roches. “This staff report is indifferent to the business community, particularly small businesses. We believe council should put forward a motion to amend the report, so that our recommendation is included for consideration.”
Although the report states that, “Over the past 10 years, Council has acknowledged the concerns of the business community that their tax burden is too high and that a portion of that burden should be shifted to residential properties,” it does not include the coalition’s recommendation for council to consider.
The report, which is being presented to council on April 18, is meant to help council decide how the property tax burden will be distributed among Vancouver’s property classes. Currently, Vancouver business owners pay six times the property taxes that homeowners pay – this is the highest ratio in the region and across Canada.
Dated March 15, 2006, the report was prepared in advance of the city’s public consultation on the budget and property taxes. “We can only conclude that the public consultation process was a sham at the expense of all taxpayers,” continued Des Roches.
Council is set to make a decision about the property tax distribution on April 20, 2006.
For more information about the VFTC, visit www.fairtaxcoalition.com. |
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