Arbitrary tax on small biz

Dear editor: Home-based business owners in Penticton need to be aware of the city’s plan to increase electrical rates for all home-based businesses regardless of the type of business being operated.

As proposed, anyone with a business licence attached to a residential property will be subject to increased electrical rates which will apply to the entire household not just the portion being used for business purposes. Even if you simply use your address to receive correspondence but mainly conduct your business outside the home, you will be billed at a higher rate than your neighbour.

Correspondence received from the city seems to indicate that the increase is targeted at bed and breakfasts, vacation rentals and secondary suites but to simplify the process the city staff are recommending all home based businesses be subject to the higher rate. This amounts to an arbitrary tax on small business regardless of the electrical consumption of the small business.

Home-based businesses in Penticton generate substantial economic benefits for the city and while we don’t expect a “freeride” the application of electrical rates needs to be done in a fair manner.

If the city feels it necessary to charge a higher electrical rate to home based businesses then I suggest the increase be based on the percentage of home use claimed for income tax purposes, not the entire household. Many home based businesses do not purchase a business licence as it is.

How many more will avoid this electrical increase and the cost of a licence by not purchasing or renewing business licences in the future? Jack Ambler Penticton