Businesses pay more
Report confirms Vancouver businesses subsidize use of city services
January 30, 2007, Vancouver, BC – A study commissioned by the City of Vancouver confirms local businesses are subsidizing residents’ use of city services.
The Consumption of Tax-supported Municipal Services report, prepared by MMK Consulting for the City of Vancouver, states that Vancouver residents used $388 million in city services in 2006, but the city collected just $217 million for these services through residential property taxes.
By contrast, Vancouver businesses used $111 million, but paid $292 million through property taxes.
“This study confirms what we have been saying for some time now,” said Ed Des Roches, co-chair of the Vancouver Fair Tax Coalition. “The distribution of property taxes in this city is not done fairly. It is simply unsustainable.”
The report confirms that costs for services have remained the same for residential property owners since 1995. Residents pay $0.56 for each dollar of city services used. Businesses now pay $2.42 for each dollar of services used, up from $2.09 in 1995.
“We hope this report does not indicate a trend,” said Paul Sullivan, a member of the Coalition’s executive. “Businesses can’t subsidize a greater and greater share of the cost for services, or many will not survive.”
The Vancouver Fair Tax Coalition is calling on the mayor and council to ensure there is no increase in business property taxes in the upcoming budget.
“City Hall must commit to holding business property taxes to the 2006 level while we work together to find a long term solution to this issue,” continued Des Roches. “The city’s Property Tax Policy Review Commission is a step in the right direction, but in the meantime, Vancouver businesses cannot sustain yet another increase in their property taxes.”
The Vancouver Fair Tax Coalition represents more than 43,000 local businesses concerned about the high municipal property taxes they pay. |
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