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.

BC legislatureUBCM

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Night time view of Area B. Photo: RDKB.com
Conservation plan underway for Rivervale water

The plan is to reduce water demand and streetlight energy consumption by 20 per cent in four years

The bobsled race has traditionally been a staple event at the carnival. File photo
Upcoming Rossland Winter Carnival cancelled due to COVID-19 crisis

The carnival has been held annually in the city since 1898

With travel across the border still uncertain, Trail Youth Baseball’s all-star U18 Orioles applied to join the BC Minor Baseball’s College Prep League next season. Photo: Jim Bailey.
18U Orioles All-stars to play in BC college prep league

Border closure restricts American Legion option, 18U Orioles to join BC Minor Baseball next season

(L-R) Kazia Hopp, Colby Mackintosh, Hunter Guidon and Russdale Carungui installed the solar panels. Photo: Nakusp Secondary School
Students install 280 solar panels at two SD 10 schools

The panels will help the schools save on their electrical costs

There is currently no limit on the amount of cannabis shops that can operate in Castlegar. Photo: File
Cannabis operators propose limit on number of pot shops in Castlegar

Cannabis operators said six pot shops in the city is already too many

Sooke’s Paul Larouche enjoys gold panning along the Sooke River, looking for small treasures. (Aaron Guillen/News Staff)
VIDEO: Island man finds niche audience by gold-panning on YouTube

Paul Larouche, 29, with over 215,000 subscribers, opens up about his journey

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Health care employees take extensive precautions when working with people infected or suspected of having COVID-19. THE CANADIAN PRESS/Chris Young
WorkSafeBC disallows majority of COVID-19 job injury claims

Health care, social services employees filing the most claims

Conservative leader Erin O’Toole rises during Question Period in the House of Commons in Ottawa on Wednesday October 28, 2020. (Adrian Wyld/The Canadian Press)
Conversion therapy ban gets approval in principle, exposes Conservative divisions

Erin O’Toole himself voted in favour of the bill, as did most Conservative MPs

Blue Sky Kingdom.
Kimberley’s Bruce Kirkby publishes “Blue Sky Kingdom” documenting family adventure to Zanskar

Kirkby third book explores spirituality, mental health, modernity and tradition

CBSA. (Black Press Media File)
4 sentenced in B.C. steroid smuggling, distribution ring that spilled into U.S.

Canadian Border Services Agency announced the results of a lengthy investigation it called ‘Project Trajectory’

Search and Rescue Technicians carry a stretcher to the CH149 Cormorant during a 442 Squadron Search and Rescue Exercise in Tofino on February 28. (Photo by: Cpl Joey Beaudin, 19 Wing Imaging, Comox)
Father and son found dead after weeklong search near Pemberton

The father and son had set out for a day of mushroom picking last Thursday

A full moon rises over Mt. Cheam on Saturday, Feb. 8, 2020. (Jenna Hauck/ The Progress)
Rare full moon, Daylight Saving makes for a uniquely spooky Halloween – despite COVID-19

We can’t host costume parties but this weekend is still one for the history books

Most Read