A divisive city council vote on 4/27 has left Vancouver property owners with a larger share of taxes to pay this year. The changes also provided commercial and industrial property owners with a shift in the amount of taxes they will have to pay, a downward change. The decision created a shift in property taxes of $3.6 million from businesses to homeowners.
How the changes affect Business and Residential Property Owners
This is being looked at as a way for the biggest companies in the city to save money while passing on the expenses to residents. But these arguments were not able to sway the decision. So if you own residential property in Vancouver, you will end up paying some extra money on taxes this year. Businesses on the other hand will be saving around $46 annually for properties valued at $1 million. This will help small businesses that are struggling, but larger businesses will benefit by paying less taxes, even though they can more than afford it.
How Much More will Homeowners Pay?
What residential property owners will pay comes down to the value of their property. For a residential property valuing $1 million, the tax will be $11.
Who Does the Tax Shift Benefit?
If the city did a progressive tax shift, this would be the better option, but it is not what has been dealt. Some smaller businesses will benefit it, but a lot of the businesses that will also benefit are really not in need of the break. It should be that those that have the means to pay be caused to pay more. This move does not seem well-intentioned at all.
Why the Shift?
There has been a boom in the expansion of residential properties. While commercial properties have been negatively affected due to the pandemic. They say the shifting of taxes is a way to properly manage the city’s growth.
We can all agree on one thing, the shift needs to be depoliticized. What are your thoughts? Share them in the comments below.