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Important News from the
Vancouver Fair Tax Coalition
There is good news on the horizon for business owners.
The Property Tax Policy Review Commission’s report,
presented to Vancouver city council on September 18, 2007
recognizes Vancouver’s current business property tax rate is
unfair and unsustainable.
The following outlines the tax commission’s key
recommendations and our position on the issue.
While the commission’s recommendations are a good
starting point to, there is still a lot of work ahead to ensure a
more fair and equitable tax distribution policy is implemented.
About the Property Tax Policy Review Commission
Vancouver city council formed the commission back in
April 2006 in response to the business community’s concerns
about the impacts of the city’s current property tax policy.
The commission was asked to recommend a long-term
policy that will define and achieve a “fair tax” for commercial
property taxpayers, as well as a strategy to enhance the
stability and predictability of property taxes for individual
properties in the face of sudden, year-over-year increases in
market value.
Tax Commission's Recommendations
The key recommendations were as follows:
1. The tax share paid by the commercial sector should
be reduced from its current level to 48 percent. (The current
level is approximately 55 percent.)
2. The city should reduce the tax share borne by
business by one percentage point per year in each of the next
years until the 48 percent share is achieved.
3. Following implementation of the 48 per cent goal,
the city should keep the tax share unchanged for a period of
five years unless the differential between business taxes in
Vancouver and business taxes in neighbouring municipalities
widens considerably and/or the balance of business
investment shifts substantially away from Vancouver to
neighbouring jurisdictions.
The Vancouver Fair Tax Coalition's Response
* The coalition recognizes the tax commission’s efforts
in producing the report and commends them for attempting to
rectify an unfair and inequitable tax distribution for our city.
* The commission has acknowledged that business
owners are excessively subsidizing residential services with
an overly high business tax rate.
* We support any tax shifts from the commercial to
residential class to address the unfairness of the current
fixed tax distribution model but will continue to advocate for a permanent and sustainable tax distribution policy based on
the proportional consumption of municipal services.
What's Ahead – Voice Your Opinion
The city will be holding three public consultations during
October to December 2007. It’s important that business
owners are heard and seen during this process.
Come out to voice your opinions and encourage other
business colleagues to attend. We will keep you informed of
the dates and locations.
Council will make a decision on the commission's
recommendations by January 31, 2007.
In April 2007, council will make a decision about the
2008 tax distribution and set the final 2008 tax rates.
For more information or to view the full commission
report, visit fairtaxcoalition.com or vancouver.ca/taxcommission.
Taking Care of Business Fundraiser
The Fair Tax Coalition has saved you, the business community, $.08/sq ft in 2006 and $.24 cents a square foot in
2007 in property taxes. So let’s celebrate!
Join your fellow businesses & Coalition members at the “Taking Care of Business”
fundraiser on Wednesday, September 12th at the Art Works gallery. Entry is $100 per
person. There will be food, wine, live entertainment and a number of excellent auction items
for you to bid on!
Come participate in the most enjoyable investment you can make in the future of YOUR
business!
Taking Care of Business Fundraiser
Wednesday, September 12th - 5:00 PM
Art Works Gallery, 225 Smithe St., Vancouver
RSVP to info@fairtaxcoalition.com or 604-734-3195.
fairtaxcoalition.com
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