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Sidney businesses to shoulder less tax burden under new scheme

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The new tax ratio in Sidney will be phased in over 10 years, with the residential sector gradually absorbing the reduction in taxes from the commercial sector. DARREN STONE, TIMES COLONIST

The Town of Sidney is about to reduce the tax burden for its businesses, with residents taking up the slack.

Over the next decade, the town intends to establish a new tax ratio that will see commercial properties paying taxes at a two-to-one ratio. For example, if business and light industrial properties constitute 10% of Sidney’s tax base — in terms of property assessments — the town would collect 20% of its taxes from those properties. Currently, the percentage is closer to 25% in Sidney, representing a ratio of 2.29 to one.

The new tax ratio will be phased in over 10 years, with the residential sector gradually absorbing the reduction in taxes from the commercial sector.

The impact on residential property taxes is expected to be about $30 each year for the average residential property over the next 10 years.

Sidney Mayor Cliff McNeil-Smith said the quality of life community members enjoy in Sidney is closely tied to the town’s thriving local economy.

“By supporting local businesses through initiatives such as the new tax policy, we are also supporting residents who benefit directly when they can shop, access services, and find employment close to home,” he said in a statement.

Last year, Sidney said it has the second lowest commercial tax rate of municipalities in the region, a strategic move intended to establish the town as an attractive place to do business.