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

Scholarships winners included Emma Andrews (CBT $2000), Declan Armstrong (Kimberley Teachers Association $2000), Darah Clarke (COTR $2000), Ryan Renaud (COTR Entrance Scholarship $8500), Chaes Flegal (Kimberley Elks Club $2000) and Georgia Polomski-McKinnon (CBT $2000).
Selkirk grad scholarship winners

The following Selkirk Secondary students won scholarships at graduation this past weekend:… Continue reading

With high temperatures forecasted for the week and into the next, Interior Health is offering some tips on how to keep yourself safe from heat-related illness. (Pixabay)
Interior Health offers safety tips as temperatures soar

‘Too much heat can be harmful to your health’

Kurt Swanson’s dog Kona takes a break from the heat on the Summer Solstice near Cranbrook, B.C. (Kurt Swanson photo)
Very warm temperatures forecast across the Kootenays this weekend

Nelson, Castlegar forecast to hit 39, Cranbrook 37

The race route takes riders over the summit of Gray Creek Pass from Kootenay Laketo Kimberley. Bohdan Doval file.
Bike race from Merritt to Fernie will be coming over Gray Creek Pass on June 28

Tom Lymbery of the Gray Creek Store says that a 1000 kilometre… Continue reading

Kimberley Search and Rescue were able to quickly respond to a call for service and transport an injured mountain biker to East Kootenay Regional Hospital over the weekend. Kimberley SAR file photo.
Kimberley Search and Rescue respond to injured mountain biker on Bootleg Mountain

Kimberley Search and Rescue responded to a call for service this past… Continue reading

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Point Roberts is part of the mainland United States but not physically connected to it, to reach the community by land one must pass through Canada. THE CANADIAN PRESS/Darryl Dyck
Closed Canadian border leaves U.S. town’s only grocery store on verge of closure

‘We’re Americans but we’re not attached to America. It’s so easy to forget we’re here,’ says owner Ali Hayton, resident of Point Roberts, Wash.

Robin Sanford and her fiance Simon Park were married in an impromptu ceremony at Abbotsford Regional Hospital on June 16. (Submitted photo)
Mom dies day after witnessing daughter’s hospital wedding in Abbotsford

Nurses help arrange impromptu ceremony in 3 hours for bride and groom

B.C. Finance Minister Selina Robinson with Premier John Horgan after the budget speech Tuesday, April 20, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. home owner grant won’t be altered, despite expert advice

Tax break for residences worth up to $1.6 million too popular

B.C. conservation officer Sgt. Todd Hunter said a black bear is believed to have killed local livestock. (THE NEWS/files)
Black bear believed to have killed miniature donkey in Maple Ridge

Trap set for predator that has been killing livestock

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Penticton mayor John Vassilaki and Minister of Housing David Eby have been battling over the Victory Church shelter and BC Housing projects in the city. (File photos)
Penticton heads to court over homeless shelter as BC Housing audit begins

The city was not satisfied with the response from Minister David Eby regarding the ongoing situation

People enjoy the sun at Woodbine Beach on June 19, 2018. THE CANADIAN PRESS/ Tijana Martin
BC Hydro assures customers it has ‘more than enough’ power to weather the heatwave

Despite an increase of pressure on the Western grid, blackouts are not expected like in some U.S. states

Air Canada planes sit on the tarmac at Pearson International Airport during the COVID-19 pandemic in Toronto on Wednesday, April 28, 2021. THE CANADIAN PRESS/Nathan Denette
Pilots say no reason to continue quarantines for vaccinated international travellers

Prime minister says Canada still trying to limit number of incoming tourists

Most Read