Re: Tax not province's fault, Letters to the Editor, Burnaby NOW, July 10.
I am compelled to respond to the brief letter of July 10 in order to correct the misinformation stated by former city councillor Garth Evans. It is, to say the least, unfortunate that someone who served as a city councillor for three years and sought that office again would offer up his ignorance of the city and province's role in property taxation for all of your readers to see. And just in case some readers are left with the view that Mr. Evans is correct in his assertions, that this hike in property taxes to light industry is indeed the city's fault, let me set the record
straight for your readers, and Mr. Evans.
The School Act provides that, "In order to raise revenue to finance the provincial funding and debt service expenses of boards, the province may levy a school tax"... and "on or before May 4 each year, the lieutenant-governor in council must determine the rates to be applied" and the cities must collect these taxes on behalf of the province.
In 2009, the province amended the School Act to provide, for "2011 and subsequent taxation years, an owner of a class 4 property (major industry) or class 5 property (light industry) is entitled to a credit equal to 60 per cent of the school taxes levied."
In this instance, since the legislation has not been amended, the province has done a bait and switch
that would be the envy of any snake oil salesman. They have, by order of the lieutenant-governor, actually increased the tax rate for class 5 by 30 per cent and then maintained the 60 per cent credit. It would be as if you saw and ad for a 60 per cent off sale, only to find that the base price had been increased by 30 per cent before you arrived at the store.
In government parlance, I believe this type of manoeuvre is called a "work around." They can't change their own legislation in time, but they do control the tax rates in cabinet, so they will just change the base rate upward and generate $32 million in additional revenue for 2013.
And so small businesses have an effective 30 per cent increase in the school tax portion of their property tax, while major industry continues to get the legislated 60 per cent credit.
I could point to more government documents that blatantly outline the charade, but I hope your readers will now understand that this increase has nothing to do with the taxation levels set by the city. Only the province is at fault.
Colleen Jordan, Colleen Jordan, Burnaby councillor Burnaby councillor
