Published Articles

Keeping Tax Increases Sustainable (in Business Examiner)

Municipal councils will be finalizing their budgets in the next few weeks. It is important that these municipal budgets get the scrutiny they deserve and are not lost in the blur of provincial election activity.

It is important to keep an eye on municipal budgets. Research we have done at the Chamber shows the trend of property tax increases across the region have generally been in excess of the average rate of wage increases in the region. And, in addition to the municipal tax, there are a number of other line items that are included on municipal bills that are increasing at an ever-steady, and in some cases, alarming rate.

A case in point is the recent 14% increase to the transit levy applied to the property taxes in the CRD. Fourteen per cent! When is the last time you received a 14% increase in your wages? And though still in consultation on this issue, a number of municipalities are considering tax increases of 5% or more, which will be applied in addition to the transit levy. When is it going to stop?

While property tax increases are a big issue for home-owners and renters alike, to whom the increases are generally passed as rent increases, they are an even greater concern for business owners. Business owners will tell you that their property tax is generally their biggest fixed expense next to wage costs. For many businesses, property tax adds an additional 25-30% on to their cost of doing business. As those costs increase, so too does the cost of service or product to customers in order to cover the increase. The result is an increase in the cost of living for all of us.

Senior levels of government have recognized that high tax rates needed to be curbed in order to keep Canada competitive with other jurisdictions, both nationally and internationally. The tax reductions were long overdue. They have been applied to both personal and business income to keep the cost of living affordable and help businesses attract and retain workers. It is equally important for municipal governments to more fully understand their role in the overall goal of keeping Canadian business competitive and the cost of living in our communities at a manageable level.

Greater Victoria has proven itself to be a community that is sincerely concerned about sustainability. We are world-renowned for our progressive approach to environmental sustainability through projects like Dockside Green and others with platinum LEEDS certification. We have a growing reputation as a centre for sustainable research and technology innovations. We are viewed as being very progressive by others in the province in dealing with issues of social sustainability within our community. It is time that we add the third leg to the stool of sustainability and pay closer attention to our economic sustainability.

We appreciate that municipalities are struggling to meet their own expenses. However, we encourage them to find service efficiencies and prioritize projects to keep year over year increases at a minimum. Especially during times of economic restraint at all levels, municipal prudence is essential.

Articles - 2010

Articles - 2009