City Adjusts Tax Rate

Vernon, BC, Canada / 1075 KISS FM Pete McIntyre April 11, 2017 06:00 pm
Vernon council has voted to adjust this year’s residential tax rates to ease the burden on businesses. Councillor Brian Quiring feels local merchants need the support.“You have utility costs going up, water rates are going up, everything is going up. Yes, we need to help businesses out. Anything we can do to help them will give them a break,” Quiring tells Kiss FM. Council’s move will shift $100,000 of total tax burden from business to residential properties. The option was one of three council considered, with option 3 passing by a 4-2 margin. (Mayor Akbal Mund was not present at Monday’s meeting) Of the $37.8 million of taxes necessary for a balanced budget, $23.1 million will be derived from residential property owners, and $11.8 million from business property owners. City taxes will increase by 3.58 per cent this year, or an extra $49 for the average residential property. The increase works out to 1.9 per cent for capital projects in Vernon—including road, sewer and facility improvements—and 1.68 per cent for operating expenses. “Vernon currently has 17,581 residential properties and 1,377 business properties. In 2016, the average residential property paid $1,252 in general municipal taxes; for 2017 that amount will be $1,301, a difference of $49. The business property tax increase will average 3.49 per cent,” says City communications officer Tanya Laing Gahr.

Tax rates are calculated by multiplying the property assessment (provided by BC Assessment) by the established mill rate as part of the balanced budget equation. For both business and residential property owners, the mill rate will be reduced in 2017. In 2016, the business mill rate was 9.9847; in 2017, the mill rate will be 9.8522. In 2016, the residential mill rate was 3.6716, and for 2017 it will be 3.6103.
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https://www.vernon.ca/activities-events/news-events/news-archive/vernon-council-adjusts-2017-property-tax-rates

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Tax rates favour business 
RICHARD ROLKE Tue Apr 11th, 2017 2:00pm

Vernon businesses are getting a tax break. On Monday, city council adjusted the general residential tax rates for 2017 to reduce the burden on business properties. “It’s hard for businesses. We need to help businesses,” said Coun. Brian Quiring of why he backed this option. This decision will reduce $100,000 of total tax burden from business to residential properties. Of the $37.8 million of taxes necessary for the budget, $23.1 million will be derived from residential property owners, and $11.8 million from business property owners. Overall, total property taxes will increase by an average of 3.58 per cent: 1.9 per cent for infrastructure and 1.68 per cent for operating expenses. In 2016, the average residential property paid $1,252 in general municipal taxes. For 2017, that amount will be $1,301, a difference of $49.The business property tax increase will average 3.49 per cent. Tax rates are calculated by multiplying the property assessment (provided by BC Assessment) by the established mill rate as part of the budget equation. Opposition came from Councillors Bob Spiers and Juliette Cunningham, who didn’t want a change in the allocation of the general municipal tax levy. “I hate to see big swings either way and this is a more moderate way to approach it,” said Cunningham. Under the option preferred by Spiers and Cunningham, the residential mill rate (per $1,000 assessed value) would have been 3.5946 (2016— 3.6716). The business class mill rate would have been 9.9359 (2016 — 9.9847).