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

Cancellation of the 2021 WLA season was bad news for players like Langley’s Cal Slade, seen here playing for the Langley Junior Thunder organization, who was just drafted by the Senior A team earlier this year. (Garrett James Langley Events Centre photo)
Langley Thunder season cancelled, again

WLA announces ‘difficult’ decision

Langley senior John Kromhoff doesn’t think he will get many cards on his 100th birthday. His family intends to prove him wrong. (Special to Langley Advance Times)
John Kromhoff doesn’t think he’ll get many 100th birthday cards

Family of Langley senior makes online request in hopes of proving him wrong

In less than two months, there have been two break-ins at the nonprofit Langley Habitat For Humanity ReStore, which is now planning to add bars to its windows and doors (Langley Advance Times file)
Thieves target non-profit Langley City Habitat for Humanity store, again

Bars on doors and windows will be installed following second incident in less than two months

Surrey provincial court. (Black Press Media files)
Attempted Langley carjacking suspect headed back to court

His lawyer represented the suspect at his first hearing Monday

Langley Animal Protection Society will hold their annual gala Oct. 23, 2021. (Special to The Star)
Langley Animal Protection Society sets date for annual gala to help Aldergrove critters

Dreams Do Come True gala is being planned for Saturday, Oct. 23 with COVID-19 restrictions in place

A prowling coyote proved no match for a stray black cat who chased it out of a Port Moody parking lot Friday, May 14. (Twitter/Screen grab)
VIDEO: Cat who chases away coyote asked to join Port Moody, Vancouver police 

Caught on camera Friday, the black cat jumps out from under a parked car and runs the wild animal out of a vacant lot

The Combined Forces Special Enforcement Unit released a poster Tuesday, May 18 featuring the names and photos of more suspected gangsters.
Police issue warning for 9 more men involved in Lower Mainland gang conflict

B.C.’s gang task force says it’s expecting ‘violence to continue and escalate’

A restaurant server on White Rock’s Marine Drive serves customers on a roadside patio. Indoor dining and recreational travel bans have been in effect since late March in B.C. (Peace Arch News)
B.C.’s COVID-19 infection rate falls to 411 cases Tuesday

360 people in hospital, up slightly, two more deaths

The Banff National Park entrance is shown in Banff, Alta., Tuesday, March 24, 2020. THE CANADIAN PRESS/Jeff McIntosh
Minister asks Canadians to camp carefully in national parks as season starts

Kitchen shelters in Banff National Park closed, trails on Vancouver Island will only be one-way

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Names of those aboard the ship are seen at Komagata Maru monument in downtown Vancouver, on Tuesday, May 18, 2021. The City of Vancouver has issued an apology for its racist role in denying entry to 376 passengers aboard a ship that was forced to return to India over a century ago. Mayor Kennedy Stewart says discrimination by the city had “cruel effects” on the Sikhs, Hindus and Muslims aboard the Komagata Maru, which arrived in Burrard Inlet on May 23, 1914. THE CANADIAN PRESS/Darryl Dyck
Vancouver mayor says sorry for city’s role in turning away South Asians in 1914

Kennedy Stewart has declared May 23 as the annual Komagata Maru Day of Remembrance

A crew of WestCoast WILD Adventures employees tackled an onslaught of litter left at the ‘Locks of Love’ fence at Wally Creek on May 2. (Anne-Marie Gosselin photo)
Litter woes consume popular ‘Locks of Love’ fence on B.C.’s Pacific Rim

Popular view spot near Tofino plagued by people hanging masks and other unwanted garbage

Vincent Doumeizel, senior advisor at the United Nations Global Compact on Oceans, as well as director for the Food Programme for the Lloyd’s Register Foundation, pulls up some sugar kelp seaweed off the French coast in April 2020. He was the keynote speaker during the opening ceremony of the inaugural Seaweed Days Festival. (Vincent Doumeizel/Submitted)
Let’s hear it for seaweed: slimy, unsexy and the world’s greatest untapped food source

Experts talks emerging industry’s challenges and potential at Sidney inaugural Seawood Days Festival

Troy Patterson, a Cadboro Bay 15-year-old, got a virtual meeting with B.C.’s environment minister months after he started an online petition calling for construction of the Coastal GasLink pipeline to stop. (Jake Romphf/News Staff)
B.C. teen’s 23,000-name Coastal GasLink petition gets him an audience with the minister

15-year-old Saanich high school student and George Heyman discussed project for about 30 minutes

Most Read