Local taxation albatross around CBRM’s neck

Issue creating an insurmountable obstacle for potential business buyers

I have some suggested reading for the mayor and council of the Cape Breton Regional Municipality (CBRM).

It’s the “Rime of the Ancient Mariner”, a poem written 220 years ago by Samuel Coleridge. The message contained in the poem has relevance and importance today, particularly with respect to the municipalities’ small business owners. It’s bad news all around when a clearly visible obstacle to small business success, one as foundational as fair local taxation, is being worn around CBRM’s neck like an albatross.

It’s well known that Cape Breton is facing challenging times as the population ages and youth are continuing to go down the road in search of jobs and opportunities. A lot of discussion tends to focus on how ongoing population changes will affect services like health care and education.

However, there is another pressing issue that must be discussed; an issue that is top-of-mind for business owners within CBRM. Business owners, particularly those who own small- and medium-sized businesses in CBRM, can’t find buyers to take the helm with local commercial taxation creating an insurmountable obstacle.

Of course, we all want every business owner in CBRM looking to retire to find a buyer or family member to take the helm of the business and continue to run it; someone who will keep the doors open, continue to provide jobs and contribute to the community. But we know that isn’t happening.

Interested entrepreneurs and hopeful business owners quickly reassess CBRM as a viable option when the reality of the cost of doing business in CBRM sinks in. Most notably, the commercial tax burden is causing existing businesses to struggle, not to mention causing potential buyers cut and run.

In the absence of buyers, businesses owners don’t have a choice. They are closing their doors, laying off staff and walking away. Or if they do manage to sell, it’s at a price below its value reducing the business owner’s retirement nest egg.

While we know that the municipality is making efforts to reduce spending, find efficiencies and spur economic growth, without significant relief on commercial property taxes it’s all for not.

We are asking the mayor and council of CBRM to remove the albatross from around its neck and remove this obstacle from small business’ success.

In the absence of buyers, businesses owners don’t have a choice. They are closing their doors, laying off staff and walking away.