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

WATCH: Kwantlen artist paints and installs Indigenous mural in Fort Langley

First Nations painter Brandon Gabriel created a piece of art for Cranberries Naturally.

Langley East MLA could testify in logging lawsuit

Rich Coleman has been put on the witness list for a lawsuit against TimberWest.

Family band from Aldergrove wins youth music award

The Springmans won a Fraser Valley Music Award for their album Happy Beach.

Surrey woman plans to travel after winning $500,000

Frances Jarvos bought her winning ticket at Willowbrook Mall in Langley

New Langley resident takes to the stage in upcoming musical

Leah Newson is performing in Annie: The Musical in Burnaby starting Feb. 1.

UPDATE: B.C. legislature managers accused of excessive travel, personal expense claims

Clerk Craig James, security chief Gary Lenz call allegations ‘completely false’

B.C. man fined $10,000 after leaving moose to suffer before death

Surrey man was convicted last week on three Wildlife Act charges

‘Blue Monday’ isn’t real, but depression can be

CMHA encourages people to prioritize their mental health

South Surrey mother didn’t have the intent to kill her daughter: defence

Closing submissions in case of Lisa Batstone underway

Anti-pipeline group wants NEB to consider impact of emissions, climate change

Stand.earth filed NEB motion asking to apply same standard to the project as it did with Energy East pipeline

B.C. man charged in 2014 snake venom death of toddler

Henry Thomas was taking care of the North Vancouver girl the day before she died

Parole granted for drunk driver who killed B.C. RCMP officer

Kenneth Jacob Fenton will be able to attend alcohol abuse treatment, nearly three years after crash that killed Const. Sarah Beckett

B.C.’s largest public-sector union wants inquiry into money laundering, drugs

Union officials say Premier John Horgan and Attorney General David Eby have not ruled out the possibility of a public inquiry

Aldergrove soccer tournament set for March 30-31

2019 edition of the Barry Bauder Memorial Soccer Tournament taking registrations

Most Read