Teck says it’s grateful to the City of Trail for considering a tax shift for its local operations but disappointed that it won’t start this year.
The company approached the city about reducing the overall burden it bears of the city’s tax revenue from 60 per cent to 50 per cent over a decade.
While council was open to the idea, they opted not to start that shift in 2026. If the shift took place immediately and all at once, homeowners and businesses would have to pick up about another $2 million in taxes to maintain the same level of municipal revenue.
In a follow-up letter, Teck Trail general manager Matt Parrilla thanked council for considering the company’s proposal during recent budget deliberations.
“We appreciate the openness of the discussion and recognize the complexity of decisions related to municipal taxation,” he said. “While we respect council’s decision to defer any changes to the major industry tax rate at this time, we are disappointed that council was not prepared to begin a transition in 2026.”
Parilla said they understand council’s need for more information and to consult the community first. He said their proposal would reduce the city’s long-term dependance on a single industrial taxpayer while placing the company’s local operations “on a more stable and predictable financial footing.”
In not granting Teck tax relief this year, some councillors pointed to the company’s gross profit of $281 million in Trail last year. But Parilla said that followed six straight years of financial losses.
“As a global operation operating in inherently cyclical markets, it is essential that Trail Operations remain viable not only in strong market conditions, but also through downturns,” he wrote.
He said the company welcomes the chance to further discuss the issue with council and staff.
The city’s major industry taxation committee, which has been looking at the request, is expected to meet again in June.
