Businesses after cap on taxes

Lachlan Labere - Salmon Arm Observer Published: August 31, 2010 6:00 PM

City of Salmon Arm residential taxpayers could be facing higher taxes down the road as B.C. businesses lobby to cap mill rates. Commenting briefly at last week’s council meeting on the recently released 2009 Annual Report, Coun. Kevin Flynn pointed to a list of the city’s principal taxpayers – a mix of 28 companies – that paid 12.492 per cent or more than $3 million of the total taxes collected that year. Flynn explained that there is ongoing discussion at the Union of B.C. Municipalities about adjusting municipal multiplier rates to address this imbalance. “I think we might be in a position where our major industry multiplier – a cap may be forced on us by the province,” said Flynn.“We’re not sure, but that’s what’s being discussed. And so we may have an impact where we may not be able to charge our major industry the multiplier that we do.”Later, Mayor Marty Bootsma shared with the Observer his concerns over this possible move by the province. “I guess the municipality’s fear is that the province will mandate what the rate will be, and whether or not I agree with a particular rate, what I don’t like to see is that power taken away from the municipalities,” said Bootsma. “Because as soon as we lower one tax, it’s like a balloon, somebody else is going to have to make up the difference, and that’s going to be the residents of course. And of course the residents depend on the businesses – many of them work there.”

A recent study by the Canadian Federation of Independent Businesses jumped on B.C. municipalities for overtaxing small businesses. The report claims Salmon Arm is the 68th worst municipality out of 160 for this, and that Salmon Arm businesses, on average, pay three times the amount that residential taxpayers do. “I’m not sure they’re comparing apples to apples,” says Bootsma, noting Salmon Arm residents pay 65 per cent of tax dollars. “For example, we have a parcel tax for transportation, and this is not an ad valorem tax, so a business gets taxed on an equal footing as residents… and that makes a big difference.” Bootsma adds that in 2009 the city compared Salmon Arm’s tax rates with those of Kelowna, Vernon, Kamloops and Nelson and found Salmon Arm’s to be lower. “Obviously businesses would like to pay less and residents would like to pay less, we’d all like to pay less,” said Bootsma.