Michael McQuillan - New Westminster News Leader Published: May 14, 2009
New Westminster homeowners are being offered a better deal on property taxes. Originally, residents were going to be dinged an extra 4.7 per cent on their bill this year—but that’s now been dropped to 4.23 per cent. That reduction results from a shift of the expense, with a 15-per-cent increase in taxes being charged to heavy industry and utility companies. City council gave approval in principle to the budget change at its Monday meeting with just Coun. Jonathan Cote voting against the property tax bylaw. With just the Kruger plant left as the city’s major industrial taxpayer and Telus the only utility company, Cote said the increased taxes would “send the wrong message.” Especially since the city has recently lost four heavy industry taxpayers—Labatt, Canfor, Interfor and Western Forest Products. Much of that heavy industrial land remains vacant and New West is trying to attract more industrial users. Most of council supported the tax shift because provincially-collected school taxes had been reduced significantly for heavy and light industrial classes—a 50 per cent school tax credit.
As well, increasing taxes for industry would still keep the city competitive in comparison to other Metro Vancouver cities, said Gary Holowatiuk, the city’s director of finance. “In a way we’re clawing back that tax break,” said Cote. “I don’t think other municipalities are looking at doing this.” Coun. Bill Harper took exception to the provincial government’s tax break for industry. “It’s the strategy of the provincial government to transfer the tax burden from industrial to residential,” he said. “I’d like to shift the burden from residential,” said Coun. Bob Osterman. “In these times every dollar counts.” On Monday council also gave its five-year financial plan approval with three readings.
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