Many initial budget requests double-digit and unaffordable (updated to March 1, 2025)
The starting point deliberations for tax increases in 2025 are among the highest ever recorded on the South Island.
While many of the proposed tax rate hikes are eye-popping, it remains to be seen how far they will be chopped before a final decision in May.
Residents are concerned even more since a Canada-US trade dispute began after these initial tax rate increases were presented to residents.
Sidney is the latest municipality to table a double-digit budget request, initially asking for a 12.85 tax hike on Feb. 3.
Staff told council that everything cost more, and Sidney is not immune to reality. The proposed rate is double that in 2024.
Langford property tax rate increases went from 2.95% in 2022 to 12.41% in 2023 and then leaped to 15.62% 2024. The preliminary plan aims to hike taxes this year by 11.2%, and it’s now just below 12%.
The city has said “significant budget pressures” in 2025 that will include RCMP and fire department staffing and the recent acquisitions of the Westhills YW/YMCA Langford Aquatic Centre and Woodlands Park. It’s also facing the downloading of the cost of the E-Comm 911 police dispatch service.
Sooke council is pushing to reduce a proposed 16.04% tax hike.
Concerns over inflation, policing costs, and asset management prompt officials to consider alternatives to a record rate hike. In 2024, council supported a 10.53% tax increase.
Esquimalt is looking at 14 per cent tax increase as deliberations begin.
The average residential-zoned property could see a $467 tax increase.
Staff said the key cost drivers of the budget are police services, labour costs for wages associated with the union’s collective agreement; and long-term infrastructure and reserve contributions.
Victoria’s first draft of the city’s complete 2025 budget, with the police budget included, anticipated a 12.17 per cent property tax increase.
The city faces tough choices to tackle tax rise and has asked staff to prepare scenarios for a 4-to-7 % hike.
It remains to be seen during the next few months if local municipal councils will listen to residents hard-pressed by the cost of living.
Half of British Columbians are $200 or less away from not being able to pay bills, according to a poll by MNP. Shockingly, the national reading for the final quarter of 2024 is eight percentage points higher than the earlier period, according to the insolvency firm.
DIG DEEPER
Editorial: Governments can’t keep squeezing the taxpayers, Times Colonist, Jan. 31, 2025.
If you can’t afford it, you do without. Why doesn’t anyone understand that? Its pretty simple.
It’s only a question of time until we have a tax payers revolt – all levels of government seem to forget there is only one level of taxpayer.