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Statistics suggest Nanaimo has B.C.’s second-highest tax burden

Hub City ranks 47th if you look at taxes on a typical home

Statistics now suggest Nanaimo is home to the second-highest per-capita residential tax burden in B.C. Each of Nanaimo's 87,515 residents had a $691 share of the 2013 tax bill — more than Vancouver ($517), Surrey ($356), Victoria ($668) and similar-sized cities like Kamloops ($609) or Prince George ($594).

Nanaimo was second only to West Vancouver, which led the fray with an a typical $1,132 per capita tax burden.

A report from Nanaimo city manager Ted Swabey presented at committee this week suggested mergers of some departments and a reduction in management staff as a method to reduce spending.

The city's tax bills and the services they pay for can be expected to fall under the microscope as the budgetary process ramps up in the coming weeks.

The Ministry of Community, Sport and Cultural Development's Local Government Department released tax burden figures in time for budget season.

Nanaimo Chamber of Commerce CEO Kim Smythe said the stats could be evidence of a need for more commercial and industrial investment.

"If you could broaden the tax base, you'd lower that dependence on residential taxpayers," he said. "I think that always has to be the goal."

Tax-burden figures provide a snapshot of the overall cost of services, though a per-capita measure includes non-paying residents, like children and renters.

"I think it's an interesting stat. I haven't decided whether or not it's a useful stat," said director of finance Brian Clemens.

He suggested that a more telling figure would be the total taxes and charges levied on a 'representative' house in the Nanaimo economy.

A typical Nanaimo home, valued at $331,733, could expect a bill of $3,606 for 2013, or 47th among the top 161 municipalities. In Vancouver, the actual bill for a typical taxpayer was $6,137 and in Victoria, $4,652.

"I would pay more attention to (the typical home) number," said University of Victoria economist Elisabeth Gugl.

"These are the people who are actually paying the taxes."

With regards to the residential tax burden, Gugl said the distribution of tax-paying homeowners to those who do not own property in the city may have a considerable effect on tax burden figures.

"I have trouble finding that a useful measure," she said. "You're not talking about anybody in particular in the economy that would actually experience that situation."

The Canadian Federation of Independent Business released its 2013 edition of BC Spending Watch in November.

According to CFIB, municipal operating expenses climbed 52 per cent from 2000-11 in B.C. The report ranked Nanaimo as the 10th-best in the province and one of the only to keep increases (12 per cent during that period) in line with inflation.

 

Per-capita tax burden


Municipality  Population  Per-capita tax burden

West Van.  44,284  $1,132

Nanaimo  87,515  $691

Victoria  84,360  $668

Saanich  114,013  $664

D. of N. Van  89,437  $641

Maple Ridge  78,124  $627

Port Moody  34,567  $624

Kelowna  122,455  $620

Kamloops  87,647  $609

Campbell River  31,888  $599