Grumpy Taxpayer$ flags business tax concerns in municipalities across the Greater Victoria Region , Chair John Trealvean with CFAX host, Sept. 18, 2024. www.iheart.com/podcast
Business pays at least triple that of residents
According to an analysis by Grumpy Taxpayer$ businesses in many municipalities in the Capital Regional District pay a disproportionate amount of property taxes, despite improvements in recent years it earns a dubious distinction in the province.
Seven of the top 9 municipalities of the 157 cited for having the highest property tax fairness ratios in B.C. are located in the capital region. They include North Saanich, Metchosin, Highlands, Colwood, Saanich, View Royal, and Sooke. Following in the 14th position is Oak Bay.
“Property tax increases contribute significantly to the struggle companies are having to stay in business,” says John Treleaven, chair of Grumpy Taxpayer$.
“Tax levels have increasingly become challenging in the disrupted marketplace of the post-COVID world. To be clear, businesses are wealth generators and tax collectors, and their customers (you and I) provide the money to pay the taxes.”
There is only one taxpayer. In too many municipalities tax policy is based on the mistaken belief that there are two, he says.
North Saanich tops the list as the highest property tax ratio in the province with a tax fairness ratio of 4.85.
The Grumpy$ report measures property tax fairness in 157 municipalities – four others did not report data to the province – by using two indicators.
The tax rate ratio is defined as the difference between the tax rate paid by businesses and residents, while the tax fairness ratio is defined as the difference between the share of property taxes paid by businesses and their share of total property assessment.
Grumpy$ analysis follows a report done by the Canadian Federation of Independent Business (CFIB) in February 2024 which also does not reflect well on the region.
In this instance (Page 8), property tax ratios were compared only in the 20 largest municipalities in B.C.
It found that Saanich, with a property tax rate ratio of 4.9 and Victoria at 3.8, topped the largest municipality list. The average among the 20 largest municipalities was almost three, or three times that of residents.
DIG DEEPER
Municipal tax rates and tax burden (Schedule 707), Government of British Columbia (2024).
Revisiting Municipal Property Tax Fairness in British Columbia, CFIB, Feb. 15, 2024.
Businesses pay almost triple the amount of property taxes that residents pay, CFIB Press Release, Feb. 15, 2024.
Canadians for tax fairness, 2024.