Wednesday, February 13, 2013

BC Ferries Appealing Tax Assessment

 Another Example Of Over Taxation?

After the ruling that saw BC Ferries win a major decision in their fight with the taxman in North Vancouver, they have filed appeals for tax assessments of all their operations in the province.

In Nanaimo they are now appealing the assessed value of the terminals at Departure Bay, Duke Point and Gabriola. If the same ruling applies in Nanaimo it will mean a reduction in taxes of about $1.2 million, 60% of which goes directly to the city with the balance going to the RDN, school board etc.

Is the Ferries Corporation being unreasonable in their pursuit of having their taxes reduced as much as possible? Of course they aren't, anymore than you or I can appeal our tax assessment if we don't think it fairly reflects the value of our property, which is the basis upon which we pay our taxes.

The real issue may simply be that the golden goose has had about as much plucking as she can stand and is finally hissing with some success.

Industrial Tax Roll-Back 17.4% This Year

The city of Nanaimo once upon a time was plucking the industrial taxpayer goose with total abandon, and spending as if that goose would never stop laying those golden eggs. Guess what? That goose completely stopped laying with the result the city has made the decision to roll-back the industrial tax base over the past five years, with the final roll-back coming this year. In fact, this year while the residential taxpayer sees their taxes increase by 3.3% the industrial taxpayer is seeing their tax rate decrease by 17.4%!

If course there will be some hand wringing on the part of local politicians as they try to figure out how to make up this possible reduction to the tax coffers. Never fear, it will be just another 1% added to the residential tax base.

Has anyone ever stopped to figure out what will happen when the final golden goose in town stops laying those golden eggs?


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