Most of the pieces of the puzzle that make up the City of Powell River’s financial plan have been put in place. While a few tweaks will be expected before financial bylaws are adopted in May, generally residential property owners will see a 3.8 per cent increase in their taxes in 2013. Businesses will also see an increase, but major industry taxation remains fixed at $2.25 million a year by a city bylaw.
In 2004, the city started shifting taxes away from major industry to residential and business sectors. That year, homeowners faced a 7.5 per cent increase, followed by hikes of 11.5, 9.5, 8.49, 8.7, 8.5 and eight per cent. In 2011 and 2012, council held the line at 3.8 per cent, which happens to be the residential tax increase this year as well.
Council is also inching its way to the elimination of the flat tax on residential properties. In 2011, council voted to reduce the flat tax by five per cent. In 2012, the flat tax was reduced by five per cent of the 2011 rate. Councillor Maggie Hathaway pointed out that using that formula, the city would never eliminate the flat tax. This year she convinced the majority of her colleagues to reduce the tax by 85 per cent of the 2011 amount.
A flat tax is a levy of a specific dollar amount on a property, regardless of the assessed property value. Arguments against using a flat tax go to the heart of what is considered good tax policy. Taxpayers with lower-valued properties are subsidizing homeowners with higher-valued properties, which is considered regressive by many experts.
Examples of how this year’s tax increase affects individual properties will be available in information presented to the public in advance of council adopting the financial bylaws in May. The city is required to present information about its five-year financial plan at a public meeting. This year council decided to hold the meeting in city hall before the beginning of the April 18 council meeting, instead of holding a separate meeting in a different location. The rationale was the attendance at the public meetings has been low in the past.
The annual information meeting is an excellent opportunity for taxpayers to find out more information about how the city is proposing to spend their money. Although many people express concerns about rising taxes in Powell River, the public information meeting has not been well attended in the past. However, it is the best source of information and gives residents the opportunity to ask questions, raise concerns and offer suggestions to decision makers. Hopefully more people will avail themselves of the opportunity this year.
