Media Release
For Immediate Release
September 18, 2007

Tax commission report receives mixed reviews
Vancouver businesses assert more work needed to find a fair solution

(Vancouver, BC) – The Property Tax Policy Review Commission’s report on property tax reform, presented to Vancouver City Council today, has received a mixed response from the business community.

“The tax commission has taken a step in the right direction, but more work needs to be done here,” said Ed Des Roches, co-chair of the Vancouver Fair Tax Coalition.  “They have confirmed the unfair inequity between business and residential tax rates and the importance of having a more competitive tax rate for business.”

The tax commission recommended an annual shift of property taxes of one per cent per year, from commercial to residential properties, until a 48 to 52 per cent allocation is reached.

“We are not sure how the commission arrived at a recommendation of allocating 48 per cent of the tax base to business and 52 per cent to residential,” said Bob Laurie, co-chair of the Vancouver Fair Tax Coalition.  “Frankly, we had advocated for a commercial and residential split that more closely reflected the actual consumption level of services.  Businesses clearly pay more in property taxes for the tax-supported services they consume.”

“Past tax reports and commissions have recommended shifting taxes, but the shift has been inconsistent and sporadic,” continued Laurie.  “Vancouver needs a permanent, sustainable tax policy.” 

“We believe this report and its recommendations are a vital starting point in building a more sustainable city,” added Des Roches.  “Vancouverites have told the commission that the present tax regime is unfair and that they value local businesses.  We will still be advocating for a fairer solution to end the taxation imbalance,” he said.

Some issues like “hot spots” are complicated and will continue to be challenging.  Laurie added that for many small business people, the “phased-in” solution proposed by the commission will be too little too late.  The Fair Tax Coalition has advocated for a solution that would bring quicker relief for businesses that lease or rent in “hot spot” areas.

Over the next few weeks, the coalition’s technical committee will be reviewing the report and its findings and will issue a formal analysis with recommendations.

The Vancouver Fair Tax Coalition represents 43,000 local businesses concerned about the high municipal property taxes they pay.  For more information visit www.fairtaxcoalition.com.

Media contacts:

Ed Des Roches
Co-Chair, Vancouver Fair Tax Coalition
604-254-5034 ext. 103

Bob Laurie
Co-Chair, Vancouver Fair Tax Coalition
604-662-5180

Kim Thé
Contemporary Communications Ltd.
604-734-3663