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Payroll tax will not affect city of Kimberley budget

One of the items in the provincial budget brought down last week that is drawing sharp criticism from the BC Liberals is the payroll tax meant to replace the revenue lost from reducing MSP premiums.
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One of the items in the provincial budget brought down last week that is drawing sharp criticism from the BC Liberals is the payroll tax meant to replace the revenue lost from reducing MSP premiums.

The tax, called the employers health tax, takes effect in2019 at 1.95 per cent for businesses with payroll of more than $1.5 million per year.

The City of Kimberley’s payroll exceeds that amount but City CFO Jim Hendricks says he does not believe it will affect the budget.

“My understanding of the new payroll tax is that it will apply to municipalities with a payroll that exceeds $1.5 million, which includes the City of Kimberley,” he said. {“I estimate that the tax will cost the City roughly $100,000 which approximates the amount that we were paying for MSP premiums. In other words, once the tax is implemented and we are no longer paying MSP premiums, the net cost to the City will be close to nil.”

However, for small businesses that do not pay MSP premiums, it will be a hit.

Columbia River Revelstoke MLA Doug Clovechok rose in the Legislature this week to speak of a specific business owner in the Columbia Valley, Justin Atterburry.

“Atterburry owns a number of restaurants in the Columbia Valley and employs nearly 60 people,” Clovechok said. “The Minister’s new double-dipping employer health tax means that Atterbury’s business – and those like it – will face an extra $22,000 dollars a year in taxes.

“The NDP have put BC family businesses in a tough spot with their new payroll tax. Many business are faced with the difficult choice of raising prices or lay off employees.”

Clovechok was not impressed with the Minister’s answer, calling it a canned response that doesn’t address the issue facing business people.



Carolyn Grant

About the Author: Carolyn Grant

I have been with the Kimberley Bulletin since 2001 and have enjoyed every moment of it.
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