City Council Approves Tax Shift for 2009

The Vancouver Fair Tax Coalition (VFTC) has again successfully compelled city council to continue lowering business property taxes in 2009. As a result of the hard work by the VFTC, city council agreed last month to approve another 1% tax shift from non-residential properties to residential properties.

Savings for Vancouver businesses:

• In 2009, there will be a tax reduction of $155 for a business property valued at $783,000
• Vancouver businesses will collectively save $5.52 million this year
• Since 2006, Vancouver business owners have saved $25.5 million in property taxes overall

In March 2008, city council voted in favour of a 1% tax shift annually for five years until residential properties pay 52% and non-residential pay 48% of the municipal tax share. But the decision to implement the tax shift is not automatic – city council must approve the tax shift each year during the budget process – and is part of the reason why there is still much to do.

Thank you for your generosity – it would be impossible for the VFTC to continue our work without your financial support. Together, we can ensure the tax inequity between residential and business taxpayers is corrected, and that city hall spends taxpayers’ dollars wisely.

VFTC Activity Highlights During 2009 Budget Process

• Advocacy: Members of the VFTC have met with staff from Mayor Gregor Robertson’s office, new city councillors, the new city manager and city staff, as well as representatives from the provincial government, including Premier Gordon Campbell.
• Presentations: The VFTC executive was very active leading up to when the city’s budget was approved. This included presentations to a public meeting held at the Wosk Centre at SFU, a special council meeting to discuss the budget, and a standing committee meeting regarding property tax allocation. Also, the VFTC was invited to participate in a focus group sponsored by the city that was comprised of members from the business community to solicit feedback about the budget.
• Media Coverage: A strong media presence was maintained throughout the budget process in the local media and letters to the editor that focused on the importance of the tax shift, plus the need for city hall to reduce its spending.

VFTC Calls for Reduced Spending at City Hall

Vancouverites should be alarmed at the rate city hall is spending taxpayers’ dollars.

The trend of increased budgets continues in 2009 with Vancouver city council approving an operating budget of $923.5 million for 2009 – this is $29 million more than last year, and $75.6 million higher than 2007.

The VFTC has publicly called for an immediate stop to increasing the budget every year and to start planning for a reduction in spending in 2010 and beyond.

We will continue to advocate for fiscal responsibility in a long-term strategy for the city.