The province of British Columbia introduced a property tax surcharge that is a substantial encroachment onto the municipal tax base. It is precedent-setting in how it is proposed to be applied and will make life less affordable for both owners and renters. The government needs to reconsider this.
Property taxes are the main source of revenue to cover municipal services. But rather than B.C. using its own provincial tax base, such as the progressive top bracket of income taxes, it has chosen to impose a new surcharge on property taxes. Although this is called a "school tax", it is not about funding schools since it just goes to general revenue and is not based on a mill rate. It is a provincial tax grab of the municipal tax base.
Although the surcharge is currently proposed to only affect properties over $3 million, it has been strategically set at this rate to reduce opposition, while pressure is already building from some academics to adjust the threshold to $1 million. That would affect the entire city and most of the region.
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