Businesses still feeling taxed

By Richard Rolke - Vernon Morning Star Published: July 31, 2008

A Vernon politician isn’t convinced concerns about increased business taxes have been resolved. Mayor Wayne Lippert and Coun. Pat Cochrane recently met with the Downtown Vernon Association to discuss complaints about the commercial tax rate for 2008. “There is still a concern about the ratio from commercial to residential,” said Cochrane. “We have also heard from businesses in the north end that have been impacted. It’s far more than downtown.” Council recently received a letter from the DVA about this year’s tax rates. “We were told the increase averages 12 per cent, but many businesses are, in fact, facing a higher increase,” said Mary-Jo O’Keefe, DVA president, in the letter. “With this year’s municipal budget, the ratio of commercial tax rates to residential tax rates has surpassed the provincial average and yet our downtown merchants are not seeing any extra value or benefit for their greater contribution to the community’s coffers.”

O’Keefe goes on to say that individual businesses are being asked to bear a much larger share of the tax burden despite residential growth occurring at a faster pace than commercial activity. “This year’s dramatic increase in commercial taxation levels will make the cost of doing business in downtown Vernon substantially higher,” she said. “This will make us less competitive with other jurisdictions and therefore undermines our retention and recruitment efforts.” Lippert says the meeting with the DVA was a chance to explain the relationship between taxes and property assessments, and to look at some specific properties. “Some had gone up more than 12 per cent and others have seen decreases.” Lippert denies the downtown core is not receiving city services for the taxes it pays. “Taxes go for more than sidewalks and infrastructure,” he said. “It goes to policing and to make Cenotaph Park more people-friendly.”