News

Chamber Disappointed With City Business Tax Direction

Penticton, British Columbia, December 12, 2019 – The Penticton and Wine Country Chamber of Commerce attended the December 10, 2019 City of Penticton Budget Meeting in order to express concerns with proposed increases to the Business Tax Multiplier.

 

“The Chamber is disappointed that the city staff recommendation and the council feedback seemed to express a lack of concern for the importance of keeping the cost of doing business affordable in Penticton.”  Nicole Clark, President, Penticton and Wine Country Chamber of Commerce.

 

Due to different tax rates, B.C.’s businesses pay multiple times the property tax bill that a resident would on an equivalent size of property. The amount by which a resident’s tax rate is multiplied to generate the business tax rate is called a business tax multiplier. The City of Penticton currently sets the Business Tax Multiplier at 1.81% and is proposing an increase to 1.83% in the coming year and to 1.91% in the following year. Businesses already pay increased rates for electricity, sewer and water.

 

Chamber Director Daryl Clarke attended the December 10 meeting and rose to support the Penticton Industrial Development Association point that with the increases small businesses in Penticton will see an annual increase of $529 in taxes and $869 in fees in general.

 

“We have already seen some significant business closures in the community in recent weeks. The Chamber is concerned that this increase is taking the city in the wrong direction. Small businesses are the lifeblood of the community. They are the employers, the community supporters, the service providers that we all count on and increases like this will have serious impact on their ability to hire, or in some cases, stay in business.” Jason Cox, Chair, Penticton and Wine Country Chamber Advocacy Committee.

 

As City Council moves forward with budget deliberations, the Chamber is hopeful that they will consider that what the business sector really needs is some tangible relief from its tax and administrative burden. The Chamber is urging the city to show their support for small businesses in ways that count in the budget: through spending restraint, low business taxes and by adopting policies that encourage economic growth.

 

 

For more information:

Nicole Clark, President

Penticton & Wine Country Chamber of Commerce

 

Diane Kereluk, Executive Director

Penticton & Wine Country Chamber of Commerce

 


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