The average resident will be paying $39 more in property taxes this year over last, while the average business will save $132.
Penticton’s city council met at a special meeting on Thursday afternoon to address the tax rate bylaw for 2015.
Taxpayers will be coughing up $26,355,465 to the city, up $334,194 from 2014. Of the increased amount, $241,388 will come from residential taxes. Properties that have been developed since last year have added $314,036 into revenues; $219,146 of that came from residential. Mayor Andrew Jakubeit said the amount of taxes stemming from new development is very exciting.
Nearly three-quarters (72 per cent) of the local tax pool is covered by residential properties. Businesses take on 23 per cent of the share, while light industry and utilities split the remaining three per cent.
This is the first year of a phased mill rate shift which will see residential properties take on a slightly greater share of taxes, while businesses will pay a little less.
This year’s business tax ratio is set at 1:1.625, and will reach 1:1.5 by 2018.
Jakubeit said that tax shift, albeit modest, is more than philosophical.
“Council has been aggressive on creating a business-friendly environment,” he said. “Not only do we want to show that we’re open for business, but we’re looking at ways of being sensitive to the ongoing operational costs businesses have to infer, which is far greater than what residential properties have to take on.”
He said that Penticton is among the five lowest tax jurisdictions in the province. The $39-per-year increase to residential property owners works out to just over $3 per month, which Jakubeit said is very palatable. And while no tax increase is ever celebrated, Jakubeit said that Penticton offers a greater quality of amenities and services than most communities.
“Most municipalities don’t have two lakes or four arenas, and we have quite a robust library system,” he said. “And we’re very gracious with our community grants.”
Council also is faced with imminent infrastructure upkeep.
“These things come with a high cost but we have been fairly diligent keeping our expenses.”
As a result of the tax shift, residential properties are subject to a 1.57 per cent increase. To meet the city’s budgeted tax requisition, residents will pay 1.3 per cent more, totalling an increase of 2.87 per cent.
“We’re always focusing on where do we cut, but we also have to look at where do we grow revenues.”
The average Penticton resident will pay $2,395 in property taxes this year. More than $700 of that – 30 per cent – goes towards the school board, a statistic that veteran Coun. Judy Sentes and Coun. Helena Konanz found surprising.
“I don’t think it’s always appreciated,” Sentes said.
The taxes paid by businesses take on an even greater share of 40 per cent.
It’s important to note than the municipal government has no control over the amount of taxation needed for the school board. The amount depends on the number of active students in any given community, and each school can apply to SD67 for extra funding if they qualify.
Konanz said it’s important for taxpayers to understand the breakdown.
The bylaw was presented during a special meeting on May 7.
It was postponed because of a jam-packed regular council meeting on May 4, but pushed forward in a hurry to abide by the Community Charter’s deadline of May 15.
Jakubeit said council didn’t want to deliberate the matter while exhausted and so late in the evening.
The 2015 tax rate passed unanimously. Absent from the vote were Couns. Campbell Watt, Tarik Sayeed, and Andre Martin.
The bylaw will require one final reading after a public hearing on May 11, which will being held in regards to a zoning change at 325 Power St.
