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Sep 13,2006

By Jeff Nagel Black Press
Sep 13 2006

Shoddy. Imprecise. One-sided.

Those are some of the words Union of B.C. Municipalities president Marvin Hunt has used to describe a B.C. Competition Council report that urges the province to slap a cap on how much property tax cities can take from industries.

It’s a serious issue – civic leaders fear a limit on their power to tax industry or business will force them to hit the only other remaining target: home owners.

And Hunt, a Surrey city councillor, pulls no punches in a memo penned in response this summer.

“Shoddy is the logic of the conclusions the report came to regarding property taxes,” he said.

“There is no proof that business has turned away from B.C. because of property taxes.”

He notes the report itself admits other reasons are behind pulp mills’ woes – such as declining demand and high supplies, competition from Asia, the strengthening Canadian dollar, labour costs, and subsidies given to competitors – yet it targets local taxes.

“The excessive and onerous tax burden is simply presented throughout the report as a given,” Hunt said, adding it relied on an advisory committee laden with industrial reps.

The result, he said, was no surprise.

“What response do you get when you ask any taxpayer if taxes are too high?”

The Competition Council suggests the province require business and industrial tax rates be blended into one and that the rate not exceed the residential rate by more than a set factor.

The council argues the measure is needed because B.C.’s pulp and paper mills are uncompetitive and need help.

Lower Mainland ports are also pushing for the change on industrial taxation.

Hunt said the report shows “bias towards industry” and no appreciation of the relationship between industry and the broader community.

“The competitiveness of B.C.’s industrial communities is not just low industrial taxes – it is being able to attract and retain workers and their families – a competitive advantage.”

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