St. John’s City The provincial government is looking to rethink how property taxes are assessed on businesses across the province.
City employees said large businesses paid millions less than before the changes were introduced last year.
In the general meeting of the council on Monday, Gary Sullivan said that for business to be on par with residential tax rates, the city would have to raise the property tax multiplier to about 1.8 times the assessed property value.
Currently, the province has capped it at 1.7 times.
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“Those who pay taxes at their place of residence (residential), that was a 12 per cent assessment increase, and at the end of it, they would have seen an overall six to seven per cent increase on their taxes year-over-year. ,” Sullivan told Global News.
“Heavy industry and businesses actually took a break of $3 million overall.”
Sullivan said some people in the previous system believed they were being double taxed, with the city and province taking their share at 1.5 times what is already set.
Mayor Donna Reardon said, “Even with the room the province has vacated, we can’t get there because we need to be at 1.78.”
“They emptied about 15 per cent, 10 per cent this year and five per cent last year.”
During the meeting, some councilors said the issue was a St. John-centric problem, citing considerable industry growth throughout the region, leaving taxpayers to ease the burden.
Growth in the Port of St. John, St. John Energy and an airport expansion were cited.
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“I think it is time for the province to realize that we are not doing something that will only benefit St. John’s. We are actually seeking something that will benefit the entire province,” said Count. Paula Radwan.
“Over the past few decades, the province has invested a lot in Moncton, and it’s time for something different.”
Reardon said the province has been responsive to the city’s response, and he looks forward to hearing from the provincial government.
She said the city is hoping to talk with provincial leaders about separating tax categories from non-resident and heavy-industrials that would differentiate between local businesses and large retailers.
“It’s a huge range,” said Coun. Sullivan after Monday’s meeting.
“Your corner store is very different from your Walmart. But, they’re both considered non-residential taxpayers.
The Council is due to meet again on February 6 for Common Council.
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