Another big decision from Castlegar City Council on Monday was regarding the total taxation contributed from major industry. The class currently contributes 28.6 per cent of total taxation to the City, but that number will be increased to 30 per cent over seven years. Major industry has been receiving a reduction in taxation over the past decade after the City was taken to court, but that agreement came to an end in 2018. CAO Chris Barlow explains why council felt bumping them up to 30 per cent was a fair increase.
“Through this budget cycle council identified, because we are doing a significant change to the budgeting process and the Investment Infrastructure Levy, that they wanted to look at all tax classes share the cost of that.”
That puts the tax increase for major industry at roughly 5.47 per cent for 2019.
Councillor Sue Heaton-Sherstobitoff was happy with the outcome and the impact it’ll have on residents.
“The money that we receive on that increase, we’re going to spread it equally against residents and commercial to bring down their taxation over seven years.”
The 2019 tax increase is now estimated 4.67 per cent for commercial properties and 4.69 per cent for residential. Those numbers have been reduced from over seven per cent which was the initial estimate.
Councillor Sue Heaton-Sherstobitoff adds they had to listen to concerns from the community.
“Our businesses are our bread and butter. They employ people, they bring revenue into our community. Plus the Chamber of Commerce wrote a letter on behalf of their businesses against the five year levy, so you know, we had to listen to that.”
The compounded rate over the five year period was estimated at upwards of 35 per cent. Council decided to spread the Infrastructure Investment Levy out over seven years to help reduce that amount. The draft budgets will come to council for first two readings in April before going back out to the public for comment.
Councillor Bergen Price was not present for the decision regarding Major Industry taxation as he identified a conflict of interest. Councillor Maria McFaddin was absent.
Major industry is estimated at 5.47 per cent.