Tax hikes across B.C. set for 2019

Tax hikes across B.C. set for 2019

B.C. Employer Health Tax is set to start Jan. 1 for businesses, meanwhile carbon, transit and property taxes rising

British Columbians are bracing for several new taxes set to take effect in the new year.

Businesses will start paying the province’s new Employers Health Tax on Jan. 1 – a tax announced earlier this year by the B.C. NDP to replace the costs of the Medical Service Plan premiums. Those premiums will remain in effect until 2020.

Kris Sims, B.C. director of the Canadian Taxpayers Federation, said in a news release Thursday that stacking the new tax on the pre-existing MSP premiums creates a double-dip of taxation on many B.C. employers for the year, including municipalities.

The new tax impacts businesses that have a payroll of more than $500,000, with a 1.95 per cent tax set on businesses with a payroll of over $1.5 million. Sims said this forces many cities to look to budget cuts or increase property taxes – a move already in the works in some regions.

READ MORE: Provincial health tax may hit city budget, Abbotsford mayor warns

READ MORE: New Employer Health Tax sparks concern in Salmon Arm

In June, Finance Minister Carole James said that replacing MSP premiums follows the lead of other provinces, in a much fairer and progressive way.

She also said that most municipalities will be able to absorb the cost, which would at its highest equate to $40 per household in additional taxes or fees.

READ MORE: Survey finds 30% of businesses expect to cut staff

Other taxes taking effect through 2019 include the controversial school tax, an increase to B.C.’s carbon tax and an increase to the TransLink tax for motorists in parts of the Lower Mainland.

The school tax applies to homes valued at more than $3 million, which is then placed into general revenue.

A tax increase of 0.2 per cent will be placed on the residential portion of a property valued above $3 million. It would increase to 0.4 per cent on the portion above $4 million.

READ MORE: Mathematician not impressed by people complaining about B.C.’s school tax

READ MORE: Multimillion dollar Vancouver home owners say they can’t stomach tax bump

The carbon tax, which impacts everyone across the province, will go up from $35 a tonne to $40 on April 1. Meanwhile, FortisBC will be increasing its residential customer rate by nine per cent – an interim rate approved by the B.C. Utilities Commission.

Metro Vancouver motorists will see tax rates on gas jump from 17 cents per litre to 18.5 cents.

READ MORE: Metro Vancouver continues to pay highest gas tax at 51 cents/litre

Then there’s the proposed 6.3 per cent ICBC rate hike, which is being reviewed by the commission. If approved, it will take effect in April and increase basic insurance rates by an average of $60.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

As the province moves to lift some COVID-19 restrictions, the city of Williams Lake will be opening up its city council meetings to the public, beginning June 22. (Monica Lamb-Yorski photo - Williams Lake Tribune)
Public attendance on the agenda once again for Williams Lake city council meetings

Residents will be permitted to attend meetings in person beginning June 22

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Thompson Rivers University Williams Lake Campus. (Monica Lamb-Yorski photo - Williams Lake Tribune)
Williams Lake high school teacher valedictorian for TRU virtual graduation ceremonies

Jonathan Harding is graduating with a master of education degree

Williams Lake's Larry Fitzpatrick, pictured here on his horse, Murphy, north of Puntzi Lake in the Chilcotin, has been awarded second place in the Guide Outfitters of B.C.'s annual awards gala for the top hunting guide in the province. (Photo submitted)
OUR HOMETOWN: At peace in the outdoors

Larry Fitzpatrick was named runner-up as the province’s top hunting guide of the year

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Queen’s counsel Paul Doroshenko, a Vancouver lawyer, has been suspended from practice for two months after admitting that his firm mismanaged $44,353.19 in client trust funds. (Acumen Law)
High-profile B.C. lawyer suspended over $44K in mismanaged client trust funds

Queen’s counsel Paul Doroshenko admits to failing to supervise his staff and find, report the shortage

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

Athena and Venus, ready to ride. (Zoe Ducklow - Sooke News Mirror)
Goggling double-dog motorcycle sidecar brings smiles to B.C. commuters

Athena and Venus are all teeth and smiles from their Harley-Davidson sidecar

Kimberly Bussiere and other laid-off employees of Casino Nanaimo have launched a class-action lawsuit against the Great Canadian Gaming Corporation. (Chris Bush/News Bulletin)
B.C. casino workers laid off during pandemic launch class-action lawsuit

Notice of civil claim filed in Supreme Court of B.C. in Nanaimo against Great Canadian Gaming

A Photo from Sept. 2020, when First Nations and wild salmon advocates took to the streets in Campbell River to protest against open-pen fish farms in B.C.’s waters. On Dec. 17, federal fisheries minister Bernadette Jordan announced her decision to phase out 19 fish farms from Discovery Islands. Cermaq’s application to extend leases and transfer smolts was denied. (Marc Kitteringham/Campbell River Mirror)
Feds deny B.C.’s Discovery Island fish farm application to restock

Transfer of 1.5 million juvenile salmon, licence extension denied as farms phased out

John Kromhoff with some of the many birthday cards he received from ‘pretty near every place in the world’ after the family of the Langley centenarian let it be known that he wasn’t expecting many cards for his 100th birthday. (Special to Langley Advance Times)
Cards from all over the world flood in for B.C. man’s 100th birthday

An online invitation by his family produced a flood of cards to mark his 100th birthday

Most Read