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Sidney, North Saanich cutting property tax increases

Sidney and North Saanich have joined other municipalities that are either eliminating or reducing property tax increases this year in response to the COVID-19 outbreak. Sidney council voted 6-1 Monday to cut this year’s tax increase to zero from 1.
Sidney Mayor Cliff McNeil-Smith
Sidney Mayor Cliff McNeil-Smith

Sidney and North Saanich have joined other municipalities that are either eliminating or reducing property tax increases this year in response to the COVID-19 outbreak.

Sidney council voted 6-1 Monday to cut this year’s tax increase to zero from 1.79 per cent for residential and commercial properties.

Council also agreed to an additional 10 per cent cut to the municipal portion of taxes for commercial and light industrial.

Mayor Cliff McNeil-Smith said Sidney has a significant number of businesses given the size of the community.

“We recognize that certainly local businesses and all businesses are really the lifeblood of our community, not only providing goods and services to the community, but in terms of being employers,” he said. “So that was motivation as well to look at measures that we could do locally.”

McNeil-Smith said the town will use its surplus to pay for the tax relief measures.

“The level of measures that we’re bringing in is currently affordable for us,” he said. “It’s not going to lead to a reduction in services.”

The town said owners of the average commercial property assessed at $980,000 will save about $2,800 this year due to a combination of reduced municipal taxes and provincial cuts to school taxes.

Municipal taxes for the average residential property will be about the same as last year, the town said.

As well, property owners will have more time to pay their taxes since both council and the provincial government have pushed back the dates when penalties will apply. The five per cent penalty for late payment of residential taxes moves to Aug. 1 from July 3. The five per cent penalty for commercial properties shifts to Oct. 1 from July 3.

Both residential and commercial property owners will face a second five per cent penalty if taxes remain unpaid on Dec. 15.

North Saanich, meanwhile, voted 4-3 Monday to cut its overall tax increase to 1.44 per cent from 2.88. That works out to a 1.65 per cent increase for residential properties and 0.95 per cent for businesses.

The owner of an average residential property will pay an extra $21 this year, down from $42.

“Council ultimately, in a slim majority, felt that some measure of reduction to recognize the impact that people in the community — both business and residential — will be feeling was the appropriate sort of action to take at this time,” Mayor Geoff Orr said.

In addition, the penalty dates for late payment of taxes have been shifted. Owners of residential and farm properties will face a three-per-cent penalty for late payment as of August 1, instead of July 3. They’ll get hit with another seven per cent penalty on unpaid balances Oct. 1.

Commercial properties will face a 10 per cent penalty if taxes remain unpaid as of Oct. 1.

lkines@timescolonist.com