Vernon is Sponsoring this resolution at the UBCM in Sept 2012. This is the 4th time this has gone to UBCM. History of the last 3 resolutions is shown below. We are 2 of 3 at getting it approved by UBCM but 0 for 2 on Province accepting it. The Ironic thing is that the Province rejected it because
the present economic outlook is extremely promising for the Province as a whole
- WHEREAS the statutory property exemption for business Class 6 assessments is $10,000, regardless of the property value; AND WHEREAS the business Class 6 exemption has remained unchanged since implementation in 1984 despite increasing assessments: THEREFORE BE IT RESOLVED that the provincial government review the business class exemption for Class 6 assessment and consider an increase to $50,000 for the statutory property exemption, in order to provide small businesses, in the Province of British Columbia, a fair exemption for their increased assessed property value.
HISTORY
July 11/2005 Don Quixote presented this idea for a small business property tax break at the last council meeting July 11/2005 They were asked to check the numbers and the feasibility of this proposal and to endorse its implementation to the Provincial Government through our local MLA. I maintain that the local small businesses (drug store, local pub, local radio station or locksmith) should be taxed at a different rate than the big businesses (banks, Walmart, Staples etc.). I was told that this was not allowed by provincial regulation. On closer examination I discovered that the big businesses were already paying at a higher effective rate than the smaller ones and had been doing so since 1984. In 1983 there were no exemptions to property assessments. In 1984 the first $10,000 of property assessment has been exempted and this continues to this present day. Now if the total amount to be taxed to the entire business class is a hypothetical $1,000,000 than the tax charged to the individual businesses changed from 1983 to 1984. It is obvious that a $10,000 exemption is worth more to a small owner whose property is assessed at $100,000 (10%) than the big owner whose property is assessed at $1,000,000 (1%)
Since then this has gone to the UBCM 3 times, (2007, 2008, 2009):
| 2007 | B121 | business tax exemption | Endorsed | View |
Provincial Response: The property tax exemptions for Class 4, Industrial, 5, Light Industrial and 6, Business, improvements were prescribed by regulation in 1984 in response to a severe downturn in the general economy of the Province of British Columbia (Province). The exemptions were intended to provide assistance to small business enterprises throughout the Province. Although not all areas of the Province share in the current economic wellbeing, the present economic outlook is extremely promising for the Province as a whole. There is no need to provide such assistance province wide at this time.
| 2008 | B26 | Business Class Exemption | Endorsed | View | |
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Provincial Response: Amendments enacted to Section 226 of the Community Charter (CC) provide municipalities with the opportunity to provide for revitalization tax exemptions for any revitalization objectives, including economic revitalization. These provisions will allow a municipality to target the kinds of economic activities and investment which will be in the best interests of the community.
| 2009 | B95 | Business Class Exemption- | Not Considered - Automatic Referral to Executive | View | |
Executive Decision Not Endorsed
Effect Of A $40,000 Exemption increase on Local Business: (2007 & 2010 )- 2012 will be posted shortly when I get Folio Count Received Sept 20.)
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| 2010 effect of $40,000 Exemption Increase |
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| 2007 effect of $40,000 Exemption Increase |
2 comments:
How does a saving of $25 per month or $300 per year make a business viable?
The same tax effect would carry over to the School Taxes and RDNO and Hospital so the tax break for that business might be in the $600 range.
Moreover the small business which are generally the Mom & Pop & locally own business that would benefit tend to keep the money within the town's economy rather than the Big Banks and box-stores whose profits fly the coop.
Not much of a break but better than no break.
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