Richard Rolke - Vernon Morning Star Published: November 28, 2009 12:00 PM
A major player in B.C.’s forest sector wants to take a chainsaw to taxes. Tolko Industries is demanding that local and provincial governments take action to reduce what it believes is a significant burden on its operations. “Property taxes have become a matter of urgency for our company,” said Jim Baskerville, regional manager. Tolko pays about $2 million in taxes annually on seven properties it owns in the Okanagan, including in Lumby, Spallumcheen, Coldstream, Lake Country and the head office in downtown Vernon. At the same time, the company has been forced to lay off staff and close operations. “The forest industry has been in a desperate situation for a number of years,” said Baskerville.In approaching all of the jurisdictions it’s involved with, Tolko is asking for a fair distribution between the various taxation classes, reduced spending by government and tax reform. “We’re determined to see some changes that will bring equality to the system,” said Baskerville. As an example of reform, Baskerville says Alberta allows for tax holidays or reduced payments when operations are curtailed.
Baskerville has also warned that Tolko will be watching Vernon’s 2010 budget process and it is looking for diligence in spending and fiscal responsibility over “political agendas.” Mayor Wayne Lippert believes the city will consider Tolko’s concerns. “We’re aware of the taxes and how it affects all taxpayers,” he said. “Tolko is not the only ones with those concerns. We hear it constantly from the Downtown Vernon Association and the chamber of commerce.” Lippert is pleased with Tolko’s willingness to lobby the provincial government for changes in taxation policy, but he points out that taxes are required for services residents either require or want. “A small reduction for industry could lead to a large increase for residential taxpayers.” Lippert also invites Tolko to monitor budget deliberations just as any citizen or group can. “We do run an open process and they will have an opportunity to weigh in on those discussions and give input,” he said.
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