The public had a chance to weigh in on taxation Monday – whether the city should tax business and light industry at the same rate.
Mike Melin, owner of Access Precision Machining, told council he struggles to find value for taxes at the best of times, and asked why there shouldn’t be a difference in tax rates.
“You have to figure out how to do more with less, like the rest of us…,” he urged council. “We have to figure it out every day to stay in business. The least you could do is amortize it over three years,” he said of a potential increase to business taxes to match that of light industry.
He noted there are different classifications for all kinds of things in business, such as WCB and insurance, so why shouldn’t there be for taxation.
The issue has been in focus for the city for several months, one of the catalysts being a visit from Valid Manufacturing owner Gerald Clancy, who requested a levelling of the tax rates between the two, saying it creates an inequity between local businesses.
BC Assessment determines business classifications by use, while the city has the power to set the tax rate for each classification. Clancy also noted that in the industrial park, classification is not the same for all.
“You can have a multi-tenant building; one tenant is light industry, the next is business.”
Lana Fitt, Salmon Arm’s economic development manager, also addressed council Monday, stating her board encourages city council to consider equalizing the municipal levy for the two classifications.
She said the change would be in an effort to both retain and attract industry in Salmon Arm.
Fitt pointed out that in 2016, 24 communities in B.C. had equivalent tax rates in both classifications.
Bill Laird, who owns a number of properties in the business classification, said he – and/or his tenants – could end up paying more depending on what council does.
However, he said, he doesn’t want any impediments for anyone outside of the community considering relocating here.
“I do believe if we did level this it would make a difference, a small difference that is being open and being willing to work with people who want to work here.”
Tim Dunne pointed out that the people he employs go home and pay mortgages and taxes too.
“Tread carefully, it’s not just the bottom line of businesses, but these businesses employ people who go home and and pay taxes and mortgages. Tread lightly on the people who are paying the bills.”
Doug MacMillan told council about a property owner in the industrial park who was told they had been wrongly assessed by BC Assessment and should be paying in the light industry classification.
“It meant a 20 per cent increase for the tenant… To me, levelling makes a whole lot of sense.”
Following the presentations, Coun. Kevin Flynn said he’d like to see a levelling of the two classifications, as that’s the only way council can help control the inconsistencies. However, he said he’d like to think more about how quickly that should be done.
“I appreciate the comment, ‘tread lightly’… People need to be employed to pay their taxes.”
Couns. Chad Eliason and Louise Wallace Richmond also favoured levelling.
Wallace Richmond stated that as a small business owner, certainty and confidence are important. She said the gap between the two classes and the volatility of not knowing which class aren’t helpful.
Coun. Tim Lavery said he thinks it would be rash for council to decide in the next week or 10 days, because he doesn’t think all the business owners and stakeholders have received the information. He suggested it all be put in one accessible place on the city’s website.
The issue will be coming up at council’s next meeting.