Finance Minister Carole James has faced questions for weeks about the effect of a new property tax on vacation homes. (Tom Fletcher/Black Press)

B.C. keeping purse strings tight as municipalities seek relief

Finance Minister Carole James lowers expectations for UBCM

Don’t expect any relief from a steep increase in medical premium costs coming in 2019, B.C. Finance Minister Carole James has warned municipal leaders.

James is also lowering expectations for local government’s share of legalized marijuana revenues, another top issue for mayors and councillors as they gather in Whistler this week for the Union of B.C. Municipalities.

The top resolution up for debate Wednesday is for the province to compensate local governments facing as much as double their medical premium costs. A new employer health tax on payrolls kicks in and they continue to pay employees’ Medical Services Plan at half the rate for the year, a double taxation that is also faced by large businesses who pay employees’ MSP premiums.

RELATED: Payroll, speculation tax top municipal agenda for B.C.

“Yes, they have a challenge in 2019,” James said. “But we believe the benefit to individuals, including the individuals who work in those businesses, of eliminating medical service premiums in this province, far outweighs the challenges of the one year they will face.”

After announcing the “employer health tax” would be assessed on all payrolls of $500,000 or more, James retreated on the tax in July. School districts, health authorities and universities will still pay the tax, but their budgets will be increased to get over the year of double taxation.

With municipal politicians going into an election for another four-year term in October, many are forced to increase property tax to cover the new payroll tax.

Another resolution given high priority by the UBCM executive is a share of provincial revenues from legalized marijuana sales that begin Oct. 17. Their proposal is for local governments to get a 40 per cent share to start, moving to 50 per cent after two years.

RELATED: B.C. towns to premier: show us the marijuana money

“Right now, we are forecasting very little revenue when it comes to cannabis, particularly in the first year,” James said. “There are a lot of up-front costs around the infrastructure that’s going to be needed, to be able to manage the licensing and the structures in our communities.

“We’re continuing to have discussions with municipalities about what they see as their role and the provincial government’s role is.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

West Kelowna ranks sixth in Expedia coziest city list

Osoyoos and Vernon also made the cut

West Kelowna Warriors strengthen defense with trade

Warriors aquire Austin Chorney from the Vernon Vipers

Kelowna’s definitive Christmas market list

We’ve prepared a list of every market in the Central Okanagan

West K Women of Influence host third annual gala

Fundraising will support the Central Okanagan Community Foodbank

West Kelowna’s downtown security patrol extended

City staff have reported that there was a noticeable reduction in crime in October

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Police in Vernon catch suspects after armed robbery in Salmon Arm

Victims told police they were robbed at knife point near an ATM

Disabled boy has ‘forgiven’ bullies who walked on him in stream, mom says

A Cape Breton teen who has cerebral palsy was told to lie in a stream as other kids walked over him

Letters shed light on state of mind of B.C. mom accused of daughter’s murder

Trial of South Surrey mother Lisa Batstone begins in BC Supreme Court

Vancouver man must pay $22,000 after breaking strata rules

Peter Gordon took his fight over his rented condo to the civil resolution tribunal, but lost

B.C. cheese linked to 5 E. coli cases

People are asked to throw out or return ‘Qualicum Spice’ cheese

Canada Post no longer guarantees delivery times amid more rotating strikes

The Canadian Union of Postal Workers closed two major processing centres in Ontario and B.C.

B.C. city councillor resigns as AutismBC director amid SOGI controversy

AutismBC president Gary Robins says Laurie Guerra’s resignation is effective Nov. 12

McGill students vote overwhelmingly to change Redmen team nickname

Student union held a referendum after a campaign by Indigenous students

Most Read