B.C. Finance Minister Carole James. (Tom Fletcher/Black Press)

No municipal break for B.C. health care payroll tax

Non-profits, school districts, universities still being considered, Carole James says

Municipal governments will have to cover the costs of the B.C. government’s health care payroll tax, because they can raise property taxes to do it, Finance Minister Carole James says.

The tax is being phased in starting January 2019, as Medical Services Plan premiums are phased out with a 50 per cent reduction taking place at the same time. For municipalities that already pay MSP premiums on behalf of their employees, extra costs for 2019 will have to be covered.

“They aren’t going to get any relief,” James said Monday when asked about municipalities who are looking at raising property taxes.

“We’re still in discussions with charities, not-for-profits, school boards and universities, the groups that don’t have the ability to be able to bring in revenue.”

RELATED: Fraser Valley farmers face payroll tax

The Union of B.C. Municipalities surveyed members as they prepared their 2018-19 budgets and they reported their costs are expected to double between 2017 and 2020 as a result of the payroll tax. The City of Victoria is considering a two per cent increase to cover the extra costs.

The “employers health tax” takes effect in 2019 at 1.95 per cent of payroll for businesses and organizations with payrolls of more than $1.5 million. A lower rate applies for payrolls between $500,000 and $1.5 million, and those below $500,000 are exempt.

The payroll tax applies whether employers pay their employees’ MSP premiums or not. James emphasized that while property taxes may go up, individuals stand to save $800 a year or more if they have been paying their own MSP premiums.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Siebring jumps off the fence to ‘yes’ side of amalgamation

“Common sense tells me that it’s time to undo a mistake that was made in 1912”

CVAC Jaguars beat the heat at Victoria’s Dogwood meet

Jaguars combine for 80 podium finishes

Bulldogs lead Island to Zone Bowl success

Eight Cowichan players on Island team, including MVP, defensive MVP and Most Sportsmanlike Player

North Cowichan OKs grant for agricultural lending library

Grant of $15,000 goes to Cowichan Green Community

Editorial: We must grow our ability to feed ourselves

The equipment needed for farming can be specialized and expensive.

Black Press Media to launch Pipeline Full of Controversy series

Series covers Trans Mountain’s history, science, Indigenous reaction, politics and economics

Hunt continues for two suspects in Ontario restaurant explosion

The explosion left 15 people injured, but all victims have now been released from hospital

Vancouver Canucks continue rebuild, sign Swedish teenager Pettersson

Team has number of young guns under contract in Brock Boeser, Adam Gaudette, Bo Horvat, and goaltender Thatcher Demko

B.C. teacher charged with sexual offences involving two teens

Henry Kang, 50, of Abbotsford charged with two counts each sex assault and sexual exploitation

Toronto Raptors star to hold basketball camp in B.C.

DeMar DeRozan is hosting a four-day camp for players aged 6-16 at the University of Victoria

Military college students accused of violating Qur’an with bacon

Alleged acts by four cadets from the Royal Military College in Quebec caught on video

Canucks sign top prospect Elias Pettersson to entry-level deal

Slick centre drafted No. 5 overall in 2017 NHL draft

Wildfire northwest of Kamloops jumps to 1,600 hectares overnight

Ground crews and aircraft are responding to an estimated 1,600 hectare wildfire approximately 55 kilometers northwest of Kamloops, near the Deadman Vidette Road.

Most Read