TIAPIN AT xepigte
UNION OF BRITISH

PHONE .S26-d4a7 AREA CODE G04 312 StATH STREET. NCN WESTMINSTER, 8.6. VIL IAT

June 18, 1982

NEWS RELEASE IMMEDIATE

Responding to recent statements by the Minister of Municipal Affairs,
Bill VanderZalm, that municipalities may be asked by the government to
waive penalties if businessmen can't afford to pay their property taxes
when they are due, U.B.C.M. President Coquitlam's Mayor Jim Tonn
responded "This is ridiculous. The government itself controls the
Municipal Act which clearly requires local municipalities to add a ten
percent penalty after the due date (usually early July). It’s his Act
and municipalities have absolutely no authority to change the law by
themselves just because the Minister thinks its a good idea."

Tonn also pointed out that municipalities cam change the tax due dates
and can spread out the tax penalties up to the end of November but only
if they have made that decision before tax notices have been sent aut.
It cannot be done retroactively after the notices have been sent.

"In addition," said Tonn, “the Minister ignores the fact that his
government, not the municipslities, sets the level of property values
which can be taxed. Those decisions were made late last Fall by
government order and require residential owners to pay taxes on ten
percent of their property values (down from 11% in 1981); businesses on
24 1/2% (unchanged from 1981) and industry on 34 %*% of their values
(increased from 28.6 % last year). Those are the governments decisions -
not ours, and for him to blame us for socking it to incustry is crazy.”

The U.B.C.M. has asked the Provincial government on numerous occasions to
permit local councils to have a variable millrate option which could be
used to spread the tax load, because the property tax "mix" in each
municipality varies. Some municipalities have a strong
industrial/commercial tax base, others have almost a totally residential
base. Eut the government has never agreed with the U.E.C.M.'s philosophy
but have applied annual adjustments to the assessment levels cn an
all-8.C. basis which simply cannot correct the wice variations which
occur in property values in individual municipalities in. &.C.

"Gefore making statements blaming local government for the tax shifts,
the Minister should look to his own house and put it in order first.
It's his. responsibility and it's in his power to correct these tax
shifts, not local government. Municipalities will not bena the law as it
is written to meet the Minister's ideas - if.he wants to change the law
that's his responsibility and only he and his government can do that",
said Tonn.

For Information:

C.S.J. McKelvey