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Residential Flat Tax reduced for 2018
By Nowell Berg
In a four to two decision, City of Kimberley council Jan. 22 voted to reduce the flat tax on residential properties from $626 to $546 for the 2018 tax year.
Mayor Don McCormick and Coun. Albert Hoglund opposed the reduction, while Councillors Kent Goodwin, Nigel Kitto, Bev Middlebrook and Darryl Oakley voted in favour. Coun. Sandra Roberts was not at the meeting.
Two years ago, in a four to three vote, council decided the residential flat tax should be eliminated over 10 years. To achieve this goal, the flat tax needs to be reduced by $80 per year.
Mayor McCormick is opposed to this reduction because the money lost from the flat tax is recouped by a “three per cent increase in the mill rate” which impacts all property taxes.
Over 10 years, “We’re talking about a 30% increase in the mill rate which would mean property taxes would be exorbitant,” he said.
The theory behind the flat tax is that “it allows for a much more fair taxation across the population for those services that are used on an equal basis by everybody,” said McCormick.
As well, the flat tax helps keep the mill rate down, which is important from a competitive point-of-view.
“Kimberley has the highest mill rate in East and West Kootenay. If the mill rate gets too high it puts us in a non-competitive position compared to the other communities,” he said.
Kimberley competes with other cities in the region to attract “people and businesses,” McCormick added, “Taxation is an important part of choosing what communities businesses move to.”
Although it is up to council to make the flat tax decision each year, McCormick said he is opposed to any further decreases in the flat tax.
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