Do the businesses located in Electoral Area C pay a business tax to the Regional District?

Every parcel of property in British Columbia is placed by BC Assessment into one property tax class. Residential properties are placed into Class 1; business properties are placed into Class 6. All Class 6 business properties, in electoral areas and municipalities, pay the property tax that is assigned to that class.

A key difference between the business property taxes in electoral areas and municipalities, however, concerns the tax rate. In electoral areas, business pay the Class 6 property tax rate that is identified by the regional district. In every regional district, the Class 6 rate must at a ratio of 2.45 to the Class 1 (residential) rate. Each regional district will determine, for each local service, the Class 1 rate to charge. The business rate is then set automatically using a multiplier of 2.45 on the Class 1 rate. This multiplier, along with multipliers for other classes of non-residential property, is mandated by the province under the Regional District Tax Regulation.

Municipalities have the authority to set not only their own Class 1 (residential) rate, but also all other rates for other classes of property, including Class 6 (business).This authority allows municipal councils to use property taxes as policy tools to pursue different goals. Within the CSRD, different municipalities use different Class 6 multipliers. Sicamous, for example, uses a multiplier of 2.15, whereas Salmon Arm uses a multiplier of 2.82. Revelstoke applies a Class 6 multiplier of 4.93, whereas Golden uses 2.16. A new municipal council for Sorrento-Blind Bay would have the authority to set its own Class 6 property tax rate.

In most municipalities, businesses are required to pay a business license fee in addition to their property tax. Fee levels typically vary based on type of business or other factors — a typical fee is around $100 per year. It has been assumed in the Sorrento-Blind Bay Incorporation Study that the new municipality would have a business license function. The CSRD does not have such a service for Electoral Area C.

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1. If incorporation does not proceed, will Electoral Area C remain as it is today?
2. Why isn't there more information for residents regarding the Two Electoral Areas option?
3. Do the businesses located in Electoral Area C pay a business tax to the Regional District?
4. Is the Incorporation Study Committee in place to advocate for a particular outcome? Or, is it expected to remain neutral with respect to the incorporation option, and focus on an objective assessment
5. To what degree should the Incorporation Study Committee make service decisions that would normally be made by the council of a new municipality?
6. How will additional costs related to infrastructure, salaries for mayor, council, and staff be presented?