Employer Health Tax Impact on Local Governments Survey Results and Analysis Union of BC Municipalities May 2018

http://www.ubcm.ca/assets/Resolutions~and~Policy/Policy/Finance/Employer%20Health%20Tax%20Impact%20on%20Local%20Govt%20-%20Final.pdf

Vernon's numbers will show an increase of $448,500 in 2019 and with the elimination of the MSP premium charge in 2020 will show a $220,000 decrease in taxes.  Assuming tht a 1% increase is approx. $360,000 then we will have a 1.25% increase in 2019 and then a .61%  tax reduction in 2020.
-----------
This does not calculate the effect if the RCMP stationed in B.C. are also subject to the 2019 Payroll tax of 1.95% . Vernons approx. cost of $5,000,000 for the RCMP payroll will add about $97,500 (.27%) to our tax requirement in 2019.
-----------
The effect on school taxes and Hospital taxes is unknown as of yet as to amount but this will be another increase to your property tax bill. Also the Transit additional costs as well as the Regional District additional costs will also be added to property tax bill.

No municipal break for B.C. health care payroll tax - Non-profits, school districts, universities still being considered, Carole James says

TOM FLETCHERMay. 7, 2018 1:29 p.m.NEWS Vernon Morning Star
Municipal governments will have to cover the costs of the B.C. government’s health care payroll tax, because they can raise property taxes to do it, Finance Minister Carole James says. The tax is being phased in starting January 2019, as Medical Services Plan premiums are phased out with a 50 per cent reduction taking place at the same time. For municipalities that already pay MSP premiums on behalf of their employees, extra costs for 2019 will have to be covered. “They aren’t going to get any relief,” James said Monday when asked about municipalities who are looking at raising property taxes. “We’re still in discussions with charities, not-for-profits, school boards and universities, the groups that don’t have the ability to be able to bring in revenue.”

The Union of B.C. Municipalities surveyed members as they prepared their 2018-19 budgets and they reported their costs are expected to double between 2017 and 2020 as a result of the payroll tax. The City of Victoria is considering a two per cent increase to cover the extra costs. The “employers health tax” takes effect in 2019 at 1.95 per cent of payroll for businesses and organizations with payrolls of more than $1.5 million. A lower rate applies for payrolls between $500,000 and $1.5 million, and those below $500,000 are exempt. The payroll tax applies whether employers pay their employees’ MSP premiums or not. James emphasized that while property taxes may go up, individuals stand to save $800 a year or more if they have been paying their own MSP premiums.

Payroll Tax B.C. vs Ontario

B.C. Payroll Tax effective Jan 1, 2019

Ontario Payroll Tax 

BC Cons slam NDP tax

Darren Handschuh - Mar 14, 2018 / 5:40 pm CASTANET
The BC Conservative Party is taking the NDP to task over its proposed payroll tax. The Conservatives propose a progressive health premium instead, claiming the NDP is simply downloading the cost of MSP onto municipalities, businesses and public sector organizations, and ultimately the public, while creating a new drag on the economy. According to the Conservatives, the payroll tax, which the NDP is disguising as a "health tax," is being implemented in 2019 even though Medical Service Plan premiums won't be eliminated until 2020. This means employers will have to pay twice in 2019. "Not only is the NDP government taxing businesses in B.C. twice for the same thing in 2019, while giving nothing back to the citizens of B.C., they are also downloading the cost of healthcare onto the workers of B.C. through the back door,” said Scott Anderson, Interim Leader of the BC Conservative Party. 2Anderson said many British Columbian employers – including those in both the private and public sector – are being faced with millions of dollars in new payroll taxes. “These new expenses will force employers to increase prices that they charge consumers, cut back on services, reduce employee compensation, cut back on staffing levels, reduce growth and stall innovation,” said Anderson. “Further, this new tax will be downloaded onto municipal property taxes in the case of municipalities and other public sector organizations, like schools and libraries.” Anderson said under the new payroll tax, Vancouver will have to pay an additional $9 million in payroll tax, while the University of British Columbia alone will be forced to pay $23 million in new taxes. “In the case of the health authorities, the NDP has created a ludicrous situation in which the province is taxing itself to the tune of a billion dollars. To protect consumers, property owners, renters and workers from being penalized by the NDP’s new payroll tax, we call on all MLAs to amend the budget,” said Anderson. The BC Conservatives propose a graduated, progressive health premium with a higher cap of $100. Employers, both public and private, will retain the ability to choose whether to cover the health premium, thereby avoiding municipal downloading, double taxation, and the creation of a new economic drag.
-----------
Vancouver Sofi 2016: P.70 & P.46
UBC Sofi 2916: P.148