Proposed Tax Hike Protested

Almost 50 Fort St John business owners showed up at City Hall yesterday to oppose council's proposed budget. The new budget, set to be ratified in two weeks, currently includes a property tax increase of 42% for local businesses. The city says the increase will be used to help balance the budget against inflation and past budget tax cuts. But business owners say the tax increase should be more evenly spread between residential and commercial properties. 

In the current proposal business property taxes would be more than three times the amount of residential increases.  Over the last ten years in B.C, property taxes rarely exceed 2.8 times the residential rates.  Of the 4.1 million dollars the city hopes to raise from tax increases, 3.25 million is expected to come from businesses in the proposed budget.  That would have local businesses shouldering 79% of the tax increase. 

Many business owners voiced concerns about how their rate was determined.  In a recent study by the city called, "20/20 Vision", residents of Fort St. John indicated they would be willing to pay increased taxes for increased services and for projects like the Enerplex.  But businesses were not polled for their opinions.  Representatives for local businesses at last night's council meeting said they shouldn't be punished for the opinions of residents.  And, if residents are not made to pay for their decisions to have new projects built and increased city services, by increased taxes, then they may not fully understand the implications of voting in favour of more taxes.

If the tax increase does become a reality, owners say they will be forced to lay-off staff or possibly re-locate. Fort St. John council scheduled an emergency budget meeting to take place tomorrow to discuss alternatives to the current proposed budget.