oe Dae eee aa ee ARs eo Provincial plan to — collect local taxes raises hackles In Regional District The Regional District of Kitimat-Stikine will be making a submission opposing the govern-. ment’s uniform industrial tax rate proposal and asking. the Select Standing Committee on Finance, Crown Corporations and Government Services to visit the Northwest to hear from the public. Under the proposal, munici- palities would lose the right to determine industrial tax rates. That power would be given to the province, which would deter- mine a uniform industrial tax rate, collect the taxes, and the distribute the.revenues to local government. According to a Union of B.C. Muncipalities ‘‘Status Report’’, the Select Standing Committee ‘met twice in February but has not considered the proposal in detail or revealed any plans for hearing from local government on the issue. The report indicated that 83 municipalities and regional districts had voiced their opposi- tion to the proposal, while only two municipalities had shown their support. According to UBCM figures, this opposition represents 68 percent of the pro- vince’s population and 85 per- cent of the industrial assessment in B.C. municipalities. An impact analysis carried out by UBCM states that the pro- posal is ‘‘flawed in practise as well as in principle’. The UBCM executive has expressed concern that it is being ‘‘forced to react to this proposed solu- tion rather than being consulted on the real or perceived problem it is intended to solve’. Findings of the UBCM impact analysis show that annual in- dustrial tax revenues for municipalities and regional districts in the province total $99.4 million on an. assessment base of $5.1 billion. This represents 4,7 percent of the total assessment base and 9.5 percent of total municipal and rural tax revenues. The analysis points out that because of wide-ranging changes’ in the revenue produced in an in- dividual community, residential and commercial tax rates would be affected and adds, ‘‘Taxes could also increase or decrease in each community through the Tedistribution of tax rev- enues from one community to another...’’. Province-wide, the analysis shows huge increases in in- dustrial taxation in rural areas of 342 percent and in Okanagan communities such as Osoyoos, up 266 percent, and Coldstream, up 301 percent. Prince George industry would pay an addi- tional 47 percent, while Kamloops, the home of commit- tee chairman, MLA Bud Smith, would only see an increase of 1.87 percent. Industry in the north would see a drop in taxes even though the cost per capita of providing services to those industries would remain higher than in the south. Revenue from industrial taxa- tion in Terrace would drop 57 percent while Stewart would see a 53 percent drop, Kitimat. 37 | percent, Vanderhoof 16 percent, Smithers nine percent and Prince Rupert four percent. Vancouver taxes would drop 23 percent and Clinton would be the home of the most favored in- dustry in the province with a drop of 77 percent. In condemning the proposed change, regional district director Les Watmough said, ‘‘Kitimat and Terrace Chambers of Com- merce are trying to attract a greater industrial base but what's the point? If this goes through it (industrial tax revenues) is all taken away.’’ Bev Rodrigo agreed, saying, ‘*There’s no reason to look for industry if we’re going to be punished. The cost of infrastruc- ture and services (to industry) would have to be paid for by the residents.” Rick Wozney added, “‘If this goes through we’ll become more and more powerless. What hap- pens to our long term borrow- ing? Are we going to ask our residential taxpayers to take -over? There are so many - negatives to this proposal I don’t know why anyone would want to support it.” Off-sale policy questioned The Kitimat-Stikine Regional District board of directors had indicated they may be opposed to the government’s new liquor policy which stops the off-sales of beer by beer parlors and pubs after 11 p.m. At the regional district board meeting March 19 directors con-. sidered a letter from the Union of B.C. Municipalities which in- dicated off-sales used to be legal as late as 2:30 a.m. untilthe new J regulation came into effect on Jan. 31, 1988. According to the letter, the policy was changed as a result of representations made by a number of municipalities and police authorities who said that off-sales were causing prob- lems in their communities. The letter stated that UBCM Officials had met with the d Minister of Labour and Con- sumer Affairs, Lyall Hansen, who was interested in finding out if the policy had alleviated the problem. Hansen said his ministry would be discussing the effects of the policy with RCMP ‘detachments around the pro- vince. The UBCM has added to that by inviting comments from regional districts and city coun- cils. After reading the letter, direc- tor Pete Weeber of Hazelton said, ‘‘Hotel keepers are quite happy with this (policy) becuase people used to go home with a case of beer but now they stay until 2:30 a.m. and get sloshed. It probably hasn’t done anything for the driving pro- blem.’' The UBCM request has been sent to the Health Committee ‘fora recommendation. 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