City councillors say federal and provincial assistance is a better way to help Nanaimo businesses than no property tax increase. (Spencer Sterritt/NanaimoNewsNOW)

By Spencer Sterritt

budget talks

“Blanket” property tax increase freeze for Nanaimo businesses off the table

Apr 15, 2021 | 12:28 PM

NANAIMO — Every business in Nanaimo won’t have their property taxes frozen this year.

Nanaimo councillors debated the option to mitigate the property tax increase for Nanaimo businesses in their finance and audit committee meeting on Wednesday, April 14. The Greater Nanaimo Chamber of Commerce had earlier asked for a report on the matter.

Councillor Erin Hemmens described the freeze as a “blunt tool.”

“I think we can continue to encourage folks to buy local and continue to frequent the hospitality sector in Nanaimo owned by local business owners.”

A staff report said the effort to limit property taxes for all Nanaimo businesses, excluding the industrial sector, would hike residential property taxes to 4.3 per cent in 2021.

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This year’s projected residential property tax increase currently sits at around 3 per cent.

“This would increase the tax burden on the residential class, many of whom are also affected by the ongoing economic impact of the pandemic. As the shift is only a one year relief measure the business class will see their property taxes go up by more than the average in 2022,” the staff report said.

Nanaimo businesses were expected to bring in slightly more than $32 million in City revenue. This was expected to grow by 3.4 per cent in 2022.

This makes up approximately 28 per cent of the total taxes collected for the City.

An option to use reserves to reduce taxes for Nanaimo businesses was presented but would lead to a higher tax increase for everyone in 2022, according to the report.

Coun. Ian Thorpe said he appreciated the idea of relieving stress for Nanaimo businesses during the COVID-19 pandemic but he couldn’t support shifting the tax burden onto others.

“Anytime you restrict something in one year, you pay for it down the road.”

Both the federal and provincial governments provide grants to businesses impacted by COVID-19.

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spencer@nanaimonewsnow.com

On Twitter: @SpencerSterritt