Federated requests tax relief

By Barb Brouwer - Salmon Arm Observer - April 16, 2008

With the forest industry in a massive slump, Federated Co-operatives senior vice-president of forest products Bill Van Bergeyk took taxing concerns to Salmon Arm council on Monday. In his presentation, Van Bergeyk noted that the Canoe operation is in “difficult circumstances,” and was forced to close the sawmill on Dec. 21. Armed with graphs showing comparative mill rates and a copy of a story that ran in a Lower Mainland newspaper by Tex Enemark, owner of his own public policy consulting firm in Richmond, Van Bergeyk asked for a tax break. In terms of taxation, he noted that Federated is the only company in its class in Salmon Arm. Since 2003, Federated’s general mill rate has risen from 45.21, which put it at 127 out of 157 of the highest mill rates in the province, to 56.57 in 2007 and a placement of 148. In 2003, Federated’s total tax bill was $405,000. In 2007, with a property assessment of $8.4 million, the bill had jumped to $575,000. A similar mill at Adams Lake, he noted, had an assessment of $8.1 million last year and a general mill rate of only 4.50. “That’s very difficult to compete with,” he said.

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Don Quixote Note: The rate in Salmon Arm for Major Industry use is 56.57/1000. --------11.96 Major Industry/residential Ratio

Rates in our Area:All figures from Prov. Stats.
Vernon - no Major industry rate.
Coldstream-- 30.482-------15.14-- Major Industry/residential Rati0
Spall---------- 25.53----------7.18--Major Industry/residential Rati0
Lumby------- 20.76----------6.05--Major Industry/residential Rati0
Kelowna----- 12.78----------3.60--Major Industry/residential Rati0
Penticton---- 6.31----------1.54--Major Industry/residential Rati0

Taxes from Major Industry: 2007

Coldstream------------$508,435
Lumby----------------- $52,678
Spall--------------------$487,670
Salmon Arm-----------$458,526
Kelowna----------------$319,563
Penticton--------------$0