The provincial government has agreed to consider providing money to resolve disputes over industrial tax rates, Union of B.C. Municipalities president Robert Hobson said today.
Hobson told a UBCM conference session in Whistler that he received a letter yesterday from finance minister Colin Hansen saying the province will consider making the money available in its 2011 budget. “I would take that as not being a 'yes', but not being a 'no.'”
Industrial tax rates became a hot issue a little over a year ago, when during the recession major industrial property owners refused to pay their municipal taxes. They included Celgar Pulp Mill in Castlegar and Catalyst Paper in Powell River, Campbell River, North Cowichan and Port Alberni.
There were worries among UBCM members that the provincial government would respond to the industrial tax revolt by capping the level of property taxes that can be charged to industrial property owners.
Hobson said the province has so far resisted imposing caps and is entertaining the UBCM's proposal to provide between $17 and $42 million a year to fund any tax reductions for industry and to make up any lost municipal revenue.
“Our members were very nervous a year ago about what might be imposed on us,” he said. While some of the pressure has been reduced as Catalyst has reached agreements with local governments, it remains a concern when municipalities are dependent on one or two large taxpayers, he said. “We consider this to be a work in progress.”
“We're not asking for much,” said Port Alberni mayor Ken McRae. “You say $25 million. That's peanuts compared to what we put in . . . We're not here for a handout. We're just here for our fair share.”
North Cowichan councilor Al Siebring said Catalyst is still seeking to appeal its taxes in his community to the Supreme Court of Canada. “It's still very much out there and this issue's not going away.”
And Kitimat councilor Rob Goffinet, said local governments will have to raise money elsewhere if they can't tax industries as they see fit. “We're fearful this is a strategy of shifting of tax burden off of corporations and onto municipalities,” he said.
The provincial government has been reluctant to even analyze whether or not municipal taxation is a problem for corporations, said Alberni-Pacific Rim MLA Scott Fraser. Nor do many local representatives feel their concerns have been heard, he said. "You could see there was some anger in the room from representatives of affected communities."
He also pointed out that capping taxes from industrial property owners will likely mean tax hikes for small businesses and residential property owners, neither of which have been represented on the task forces investigating the issue.
Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.
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Curt
1 year ago
Well, I'd like a hand out
Well, I'd like a hand out while they're at it.
We're all going through and have had tough times and this continues. Unfortuntately, I don't get to write off anything that corporations do as business. They too must pay their share just like anyone else. Quit whining. And the lieberals would just love to bail out their "friends" again.
Skywalker
1 year ago
Yes, another tax shift.
The province lowers taxes on corporations leaving the municipalities to raise taxes on residential and small business. Where does Hanson think he's going to get the money? From that HST tax shift no doubt.
offended
1 year ago
And I'd like a pony :)
Enough of the corporate welfare. Corporations have to pay their fair share of property taxes, and consumer taxes.
Grania
1 year ago
Corporate Welfare Bums
NO!
Iwannajob
1 year ago
Corporate Welfare
So lets see, refuse to pay your municipal taxes and the Liberals will pick up the bill, bring in the HST, removal of land from TFL's, take away local processing of timber, gut the WCB system, gut the Forest Service, gut the Environment Ministry and, oh yeah, drop corporate taxes by 25%. Starting to see a pattern?
Curt
1 year ago
The commoners, working
The commoners, working people have had enough.
http://ca.news.yahoo.com/s/capress/100929/world/eu_europe_austerity_protests
jim1966
1 year ago
It Didn't Take Long Did It?
Sadly I was right never to believe the BC Liberals. Campbell and Co still are still not getting it. This government should be on it's knees begging British Columbians to continue to govern not this crap. Recall is sadly the only way to remove these turkeys from office. People from all walks of life are disgusted by this government and mostly because of these kind of practices.Enough whining from British Columbias corporate sector. Like anyone else you MUST pay your share of taxes, British Columbians will not pay your bills any longer, we can't we are overloaded with extra fees, higher living costs and like. Meanwhile, everyday people are still going hungry and too many people are living or struggling in some sort of poverty. Campbell and Co continually amaze me when it comes to deception and arrogance.
Skywalker
1 year ago
Right on Jim1966!
Any very large corporation, especially if it is the major employer in a town, can hold the municipality up for this kind of intimidation. Free Trade and the right to move capital across borders whenever they chose also helped. That the province would cave in to this kind of blackmail is just outrageous. What defense does the public have if the provincial government is made up of a bunch of corporate ass kissers?