Council voted to modify tax rates on Tuesday night, with a slight decrease to businesses that will shift rates to residential taxpayers.
Based on the yearly District budget finalized on March 6, the tax revenue required to operate is $27.7 million, which is a 6.33 per cent increase over last year’s tax revenue requirement.
The majority of Squamish’s tax income comes from residential properties and businesses, with some of the tax burden also being covered by utilities and the port.
Coun. Susan Chapelle and Mayor Patricia Heintzman supported lowering the business rates and shifting the burden to residential taxes at previous meetings.
The original business tax ratio proposed was an 8.8 tax rate. On Tuesday evening councillors agreed to lower the rate to 8.7. That also has the effect of slightly upping the residential rate and light industrial rate.
“Every little bit helps nowadays. I completely think that this is beneficial to small businesses,” said Chapelle.
Regardless of the tax rate, District staff said many businesses on Cleveland Avenue would see a tax hit this year due to high downtown property assessments.
“Even though it’s not a significant decrease for these businesses, it’s a nod. It’s an acknowledgment that this is a problem,” said Heintzman “I know that helps all businesses, the Walmarts of the world and the Home Depots, but I do think we need to give the nod to our small businesses.”
The rates supported on Tuesday evening are calculated based on ratios that compare all rates with the residential baseline of almost 3.2.
The ratios passed at third reading on Tuesday are 2.73 for business (or an 8.7 tax rate), 3.82 for light industrial (or a 12.06 tax rate) and a 26 tax rate for major industry.
After final council adoption, expected May 8, the province will have to sign off on the taxes.
