Consultant recommends new ‘revenue-neutral’ tax approach

Penticton city council appears set Tuesday to usher in a new method of calculating property taxes and closing the gap between the residential and commercial classes.

The city has for several years had one of the lowest business tax multipliers in B.C – meaning commercial property owners paid less versus residential owners compared to peers in other communities.

While it made for an attractive business climate, it also led to complaints that residents were being asked to pay more than their fair share, especially during a time when home prices were skyrocketing.

Now a consultant hired by the city has recommended moving to a revenue-neutral tax approach, under which the multipliers would “float,” according to Mayor Andrew Jakubeit.

The new approach would almost uniformly apply a city tax increase to all property types across the board.

“So it’s easier to calculate and easier to understand and more fair to the community, the largest share of which is residential,” said Jakubeit, and “it will slowly start shifting the difference between business and residential a bit more to the business side.”

The consultant’s report goes before council Tuesday.