Light industrial (Class 5) businesses in Burnaby are expressing concern over the province’s decision to phase out the school tax credit.
Since 2009, Class 5 businesses throughout the province have enjoyed a break when paying the mandatory school tax. It began as a 50% tax credit in 2009 and 2010, then climbed to 60% in 2011 and 2012.
The tax credit was to remain at 60% this year, but because the province increased the school tax rate, the effective break for light industrial businesses will be 30%.
The school tax will be eliminated in 2014.
“Businesses in Burnaby and throughout the province are seeing increases of thousands – and, in some cases tens of thousands – of dollars this year and can expect to see even more next year,” said Burnaby Mayor Derek Corrigan.
“Business owners are calling the city to voice their extreme concern, not realizing that the city played no role in setting this tax. The City of Burnaby – like cities throughout the province – simply collects the tax on behalf of the provincial government as mandated by legislation.”
According to a City of Burnaby press release, there are approximately 400 Class 5 businesses in Burnaby and 26,600 in B.C. The assessed value of the Class 5 businesses in the province is $15.9 billion.
