Sunday , January 17 2021

City councilors in Vancouver should consider an increase in real estate tax by 4.9%

Vancouver officials are asking counselors to consider an increase in property tax by 4.9% in 2019.

The staff cites three reasons for the proposed increase, including inflation, the new employer health tax in the province – to replace the removal of premiums for MSP – and the cost of new infrastructure.

If approved, the increase of 4.9 will be an additional $ 108 next year for the average homeowner, $ 41 for the average homeowner and an increase of $ 193 for the average business owner.

The staff offers an operating budget of $ 1.5 billion for 2019 and a new $ 371 million capital project budget.

In its budget document, the city states that there is a significant difference between spending growth and revenue growth, which requires a higher tax increase than what was approved in 2018.

This budget approved an increase of 4.24%, which is higher than the planned 3.9%.

"We are faced with the challenge of maintaining basic services at the level our people and businesses expect, while making the right investments in the future to make sure we can respond to the pressure and capabilities of a developing city, Sadhu Johnston's city manager wrote in the budget document.

The proposed increase of 4.9% from 2019 reflects a number of factors, including inflation (2.2%), the impact on real estate tax of the new employer health tax (1.7%) and additional investment to renew infrastructure capital plan 2019-2022 (one percent).

The budget also offers an 8.7% increase in utility fees.

This increase will equal an increase of US $ 119. for the median owner of single-family houses and an increase of US $ 115. for a media business property.

This report, prepared to explain Vancouver's 2019 budget, shows an increase in real estate tax for average homeowners and business owners. (Vancouver City)

Employers' health tax was announced by the government in the February budget. It will charge companies a percentage of their wages under a progressive tax system.

Companies with a salary below $ 500,000 will pay nothing, and companies with a salary of more than $ 1.5 million will pay 1.95% of their wages.

In the spring. the city of Vancouver has said it has spent $ 5 million on SME payments in 2017 but will spend $ 15 million in 2020 with wage tax

The budget priorities for 2019 include an increase in housing supply and affordable prices. The city says the first year of the Empty Homes Tax program has generated nearly $ 30 million in net revenue to help with initiatives.

Advisors will receive a budget presentation for 2019 on Tuesday at 9:30 pm PT.

City officials argue that the average total tax on municipal property and community charges for the median of single-family homes in 2018 was $ 3,814. Vancouver came under $ 3,609.

The city also says that Vancouver has faced part of the lowest real estate tax in Metro Vancouver over the past 10 years. The ten-year average for Vancouver is less than three percent.

This chart shows that the increase in the Vancouver real estate tax is below the regional average over the past 10 years. (Vancouver City)

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