Friday, January 27, 2012

The Politics of Tax Shifting

Over the last number of years - a number of local governments including Castlegar, Kamloops and Quesnel have begun to shift the overall percentage of total property taxes paid by Heavy/Light Industry to Residential, at the request of local industry

Last week - the Supreme Court of Canada confirmed that the District of North Cowichan's Tax Rates Bylaw was properly adopted.  In the meantime - the District confirms that it is looking at the possibility of tax shifting from Class 4 (Major Industry) to Class 1 (Residential).  Muncipalities that have completed some tax shifting (ie - Kamloops/Quesnel) have not suffered politically because of it.

See the full press release from the District of North Cowichan here

In the meantime - local industry here has raised concerns about rising property taxes with no increase in services.  The City's response has been that it is because of lowering industrial assessments.

Should the City of Williams Lake Council decide to do what Castlegar, Kamloops and Quesnel has done - tax shifting - I think WL Council will have to look at service cuts to ensure that the tax shift from Class 4/5 (Heavy/Light Industry) does not result in heavy increases in property taxes paid by residential property owners (as has been suggested to me by local Steelworkers' Union President Paul French)

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