The True Cost Of Tax Increases In Prince George

Thursday, May 13, 2010 03:45 AM

If you really want to know just how much your taxes have gone up in the past year, there is a very simple way to calculate that figure.

How much money did the city spend last year, how much are they spending this year? In 2009 the city collected $69.8 million, this year $73.4 million. That is $ 3.6 million more than last year or 5.30%. Forget all the figures you have been handed by the city and how the break down occurs.

The city taxpayers are heavy industry, light industry, business and residential, we are all in it together, so if one side, in this case heavy industry, gets a break someone else is paying for it.

By the way the province is set to stop the practice of hitting heavy industry in a community and this city has been getting more in this department that many other cities in BC. They simply had to reduce that figure and will continue that practice in the coming years or they will have the province do it for them. A number of successful lawsuits have taken place in which industry has argued successfully that they are paying too much of the tax share.

The taxes in Prince George have risen 9.7% in the past two years with spending up from $66.8 million in 2008 to $73.4 million this year. Of course you should also factor in the increased costs for sewer water and garbage to come up with a true figure. When those costs are added to the mix the increase in the cost to obtain services in this city has risen in the teens in the past two years.

There is room for improvement.

I’m Meisner and that’s one man’s’ opinion.

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Posted on Thursday, May 13, 2010 03:45 AM in Views by Ben Meisner

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Comments

Posted by: Eagleone on May 13 2010 5:35 AM

There is a dichotomy of taxation responsibility that is never talked about. The sources of revenue responsibility do not correctly match the expenditure interests. To many people that don't pay any municipal taxes and yet have the same vote to expect expenditures for their interests. Property taxes should be for things related to property ownership and nothing more.

For all the extra's they should be funded by a sin tax, carbon tax, sales tax, casino tax or what ever, but it shouldn't come out of the pockets of home owners who are held hostage to the yearly taxation whims of the city.

I think municipal taxation should at least attempt to reflect fairness for services rendered and not a robin hood system of redistribution of wealth via captive home ownership taxation.

AIMHO

Posted by: MiddleGround on May 13 2010 8:22 AM

If I remember correctly, the taxes in PG have gone up by 7.96%.

The means the rest of the increase has come from increases to user fees and such.

Posted by: NMG on May 13 2010 8:14 PM

"A number of successful lawsuits have taken place in which industry has argued successfully that they are paying too much of the tax share"

Really? Which ones? I have heard of various businesses saying that they are paying too much (and that they were going to court to get it resolved), but I'd like to see actual cases where the courts have overridden the taxing authority of the cities and ordered a reduction in taxes. I think there have been cases where the cities have reduced the taxes on their own accord (as a result of industry pressure) but I'm not aware of any cases where the courts have mandated it. How could the determination of tax rates even be within the power of the courts? Do they have legislative authority to set tax rates

Posted by: gus on May 14 2010 2:22 AM

NMG. As you probably know, there are two ways to appeal the amount of taxes being paid by anyone.

The first stage is an appeal of the assessment. Assessments are decreased and even increased by the appeal process in place for that purpose.

There are many examples of that.

Here is, I believe, an interesting article from the USA. http://www.allbusiness.com/government/government-bodies-offices-law-courts/13466407-1.html

And here is the Celgar case http://thetyee.ca/News/2009/09/30/MilltownTaxMutiny

http://castlegarsource.com/node/4066

http://boundarysentinel.com/node/4140?quicktabs_1=1

with the finla resolution settled out of court which has the city reducing taxes.http://rosslandtelegraph.com/node/5119

So, no court case that I can find that was won through a decision of the court. But, there may be some.