Light industrial taxes could jump an average of 56 per cent if Vernon city council adopts the tax ratio changes recommended by the finance committee.City finance 
manager Rob Mayne said that after comparing the city’s tax ratios for utilities and light industry with other municipalities around the province, he found that Vernon was undercharging. Mayne said that he made the recommendation to the finance committee that the light industrial ratio of 2.25 be raised to 3.2, while the utility rate of 2.82 be raised to 6.5.“The recommendations are that council consider raising the ratio for light industry and utility classments over a two-year period,” he said.The tax ratio compares the property tax rate for residential to the tax rate for other property classifications. A tax ratio of 6.5 means the utility tax rate is 6.5 times higher than the residential rate.Coun. Barry Beardsell said a review of the city’s tax ratios is long overdue. He said he’s been asking for a review for 
“some time.”“This city historically has not paid any attention to the rates of various classes of assessments in relation to other communities,” he said. “(The city) has grossly undertaxed some while others are significantly overtaxed.”Although he applauds the move to adjust the ratio, Beardsell said he worries the added revenue will disappear in the city’s coffers.“My only concern with the adjustments . . . is that the funds that are generated from the increase be applied elsewhere and that it does not turn out to be a tax grab,” he said.A detailed analysis was conducted comparing Vernon’s tax ratio to every community in B.C., Mayne said. The recommended ratio is based on bringing Vernon’s numbers in line with other communities of similar size.Mayne said the average light industry will see a 56 per cent increase in taxes but it will be utilities that feel a greater impact. The B.C. Hydro site where a new transmission centre is being built will receive a 120 per cent increase in taxes resulting in $147,000 in additional revenue for the city, he said.To ease the burden on local industries and utilities, the finance committee is recommending that the higher ratio be phased in over two years.Despite the increased revenue, residents won’t see a significant difference in their tax bill, Mayne said. Light industry and utilities raise just over one per cent of the tax demand – far less than residential or even businesses.“Any impact of raising the rates wouldn’t have a significant impact on the residential class,” he said. “We’re also talking about doing it over a graduated period.”The recommendation is expected to be on the agenda at Monday’s council meeting.
manager Rob Mayne said that after comparing the city’s tax ratios for utilities and light industry with other municipalities around the province, he found that Vernon was undercharging. Mayne said that he made the recommendation to the finance committee that the light industrial ratio of 2.25 be raised to 3.2, while the utility rate of 2.82 be raised to 6.5.“The recommendations are that council consider raising the ratio for light industry and utility classments over a two-year period,” he said.The tax ratio compares the property tax rate for residential to the tax rate for other property classifications. A tax ratio of 6.5 means the utility tax rate is 6.5 times higher than the residential rate.Coun. Barry Beardsell said a review of the city’s tax ratios is long overdue. He said he’s been asking for a review for 
“some time.”“This city historically has not paid any attention to the rates of various classes of assessments in relation to other communities,” he said. “(The city) has grossly undertaxed some while others are significantly overtaxed.”Although he applauds the move to adjust the ratio, Beardsell said he worries the added revenue will disappear in the city’s coffers.“My only concern with the adjustments . . . is that the funds that are generated from the increase be applied elsewhere and that it does not turn out to be a tax grab,” he said.A detailed analysis was conducted comparing Vernon’s tax ratio to every community in B.C., Mayne said. The recommended ratio is based on bringing Vernon’s numbers in line with other communities of similar size.Mayne said the average light industry will see a 56 per cent increase in taxes but it will be utilities that feel a greater impact. The B.C. Hydro site where a new transmission centre is being built will receive a 120 per cent increase in taxes resulting in $147,000 in additional revenue for the city, he said.To ease the burden on local industries and utilities, the finance committee is recommending that the higher ratio be phased in over two years.Despite the increased revenue, residents won’t see a significant difference in their tax bill, Mayne said. Light industry and utilities raise just over one per cent of the tax demand – far less than residential or even businesses.“Any impact of raising the rates wouldn’t have a significant impact on the residential class,” he said. “We’re also talking about doing it over a graduated period.”The recommendation is expected to be on the agenda at Monday’s council meeting.
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