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

The cost of getting elected in Princeton

In many cases the councillors that spent the least did the best in the 2018 election

Princeton Mounties get their man – eventually

Perseverance and a little luck pay off for officers

Highway 97 rock slide north of Summerland beginning to stabilize

Costs of road work so far estimated at between $300,000 and $350,000

Family Day long weekend expected to be sunny and cool in South Okanagan

Flurries forecasted for the first half of the weekend, followed by bluebird skies and milder temps

VIDEO: Historic night in Red Deer as 2019 Canada Winter Games kicks off

Star-studded Opening Ceremony features athletes from across Canada

Okanagan mental health facility takes holistic approach to recovery

Healthy Essentials Clinic is more than a medical arm in Lake Country

Tribute to well-loved Shuswap teacher enables outdoor learning

Family, co-workers raise funds for Shannon Sharp Learning Circle

Expect delays on Highway 1 west of Golden due to vehicle fire

Expect delays while driving Highway 1 between Golden and Revelstoke. Drive BC… Continue reading

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Semi loses control on Highway 97A in Shuswap

Slippery roads contribute to crash of transport truck carrying tires

Plecas won’t run in next election if B.C. legislature oversight reforms pass

B.C. Speaker and Abbotsford South MLA says he feels ‘great sympathy’ for Jody Wilson-Raybould

Infighting at Kelowna Yacht Club makes it to court

Marc Whittemore, a local lawyer and prominent member of the club, filed a notice of civil claim Feb. 1

Most Read