Residential Taxpayers to contribute $375,600 more so Business taxpayers can get a Break !

On Monday at 8:30 AM the COW meeting will be presented with Memorandum from the Manager of Finance, re: Recommendation from the Finance Committee – 2007 Tax Rates. (to be distributed) .

This recommendation will include the following:

• Utility Tax Ratio of 6.5 implemented this year.


• Industrial Tax Ratio of 3.2 implemented this year


• Business Tax Ratio of 2.7 this year. (last year 2.82)

To accomplish the lowering of business tax ratio the City will cut the business tax class's taxes by $458,800 and raising the Residential Taxpayers class by $375,600. (The Utilities ratio change will increase taxes by $38,500 with the Industrial Class bringing in $44,700 more in tax revenue.

-----------------------------------------

Possible sources of money so Residential Taxpayer need not be hit anymore:

1. There is $70,000 in Grants in lieu of taxes for BC Hydro (an Utility) that is not part of the above calculations. (probably only $30-$40,000 would be more accurate.)
2. The excess profit from the Airport (A business) (estimated at least at $90,000 ) could be used for business tax ratio adjustment if it is not dedicated to the Airport reserve account if taxiway Charley is agreed to be built in 2007.
3. Last years surplus estimated at $700,000 before the budget adjustments where it was decided to pay for the OCP review $230,600 from the existing $700,000 in 2006 operating surplus. This leaves only $469,400 (700,000 - 230,600) in the 2006 year end surplus (approx.) for the council to slice and dice. This could be used to lower the business tax ratio WITHOUT resorting to increasing the taxes extracted from Residential Property owners.

Don Quixote Recommendation: (If I Was KING)

• Phase in Utility Tax Ratio to 6.5 for the 2007 tax year. (perhaps in view of the B.C. Hydro's Grant in lieu Policy of paying on a last year basis then rate increase s/b closer to Langley's 11.758 and must be debated now. (hopefully BCTC who are the Actual owner of new control centre slated to come online in 2008 have the same Grant in lieu Policy as BC Hydro ! (Both buildings will be under-roof and weather enclosed early in 2007. The buildings are scheduled for occupancy in the summer of 2007. The overall project is on budget and schedule for a 2008 in-service date.)
• Phase in Lt. Industrial Tax Ratio only to same level as business tax ratio and stop. (i.e. Treat Lt. Industrial as a business) Do not proceed to the 3.2 intended TARGET ratio for this class. Resolve to treat the Lt. Industrial class in the same way as you treat the business class in the future.
• Signal to Business and Lt. Industry by Resolution that the tax windfall that comes from the new Control centre will be utilized to lower their tax ratios in future years.
• Use some of the monies suggested above to make these changes without resorting to increasing the residential taxpayers class BURDEN.
• Lower the Business Tax ratio to 2.7 in 2007 if above conditions are met.
• Kickstart the DVA or Chamber of Commerce by signaling that you will bring a resolution to UBCM to increase Property Tax exemption for Businesses from $10,000 to a higher amount (say $50,000) IF THEY LOBBY YOU FOR IT. (This tax change if implemented would not change the Amount of monies required from the Business Class at tax time, but would more efficiently change the distribution of tax load and benefit the smaller local businessman at the expense of the larger external conglomerate. (Banks, Walmart etc.)