Nearly four months after introducing an array of new tax measures, the B.C. government is still facing questions as the spring legislative session wraps up. B.C. Premier John Horgan is promising clarity on the impact of the Employers Health Tax on charities and not-for-profit organizations.
Horgan told reporters on Thursday that in the ‘day ahead’ an update would be coming on how to deal with organizations that will be hit hard by the new tax that comes in on January 1, 2019.
The B.C. premier has also been criticized for a lack of clarity on the speculation tax, which was introduced to punish homeowners that used real estate as an investment.
“We continue to consult with a broad group of stakeholders, we are listening,” said Horgan. “Both the taxes are not taking effect this year, they were tabled by the minister of finance with the express purpose to consult.”
WATCH HERE: Impact of NDP’s new taxes
The B.C. NDP cut Medical Service Plan (MSP) premiums in half last fall and will get rid of them entirely in 2020. The province is putting a health payroll tax in place on Jan. 1, 2019, to pay for the lost revenues.
Get daily National news
MSP will be gone on Jan. 1, 2020.
READ MORE: B.C. Government ignores advice from MSP task force, brings in payroll tax
Businesses with payrolls of more than $1.5 million will pay a tax rate of 1.95 per cent on their total payrolls.
Any businesses with payrolls between $500,000 and $1.5 million will pay a reduced rate, and those with payrolls below $500,000 will not pay the tax.
“In fact, I am prepared to wager that pretty much every MLA in this House has had a deluge of emails, concerns and visits — organizations marching into our offices saying: ‘We can’t manage this. It means laying off staff. It means cutting services and ending programs’,” said B.C. Liberal MLA Shirley Bond.
The new taxes were part of a suite of changes the government proposed in February to address affordability. The government also introduced an increase in the School Tax for homes worth more than $3 million. That tax has been at the centre of debate in the riding of Vancouver-Point Grey, where MLA David Eby held a packed town hall meeting.
The addition here is a 0.2 per cent on the value between $3 and $4 million and 0.4 per cent above $4 million on the value above $3 million.
“It’s a very specific tax for a very specific home,” said Eby. “It’s a relative amount on the appreciation amount on the properties.”
Comments