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

B.C. chiefs show solidarity with Wet’suwet’en hereditary chiefs

Chiefs from around B.C. outside the Coastal GasLink pipeline route in Smithers show support.

December windstorms led to record ferry cancellations

Baileys for breakfast? It may not be what the doctor ordered, but… Continue reading

RCMP to review actions at Wet’suwet’en pipeline protest camps

Senior Mountie says he hopes protests will be peaceful following deal with hereditary chiefs

On the Wing: Christmas Bird Count #4 — Skidegate Inlet

By Margo Hearne The marine forecast read “winds northwest 15 to 25… Continue reading

Haida Gwaii mountain biking gets in gear

The frost was gone, but the iced puddles on Mac Blo Road… Continue reading

B.C. chiefs show solidarity with Wet’suwet’en hereditary chiefs

Chiefs from around B.C. outside the Coastal GasLink pipeline route in Smithers show support.

B.C. chief says they didn’t give up rights for gas pipeline to be built

Hereditary chief: no elected band council or Crown authority has jurisdiction over Wet’suwet’en land

Condo rental bans may be on way out with B.C. empty home tax

Many exemptions to tax, but annual declarations required

UPDATE: B.C. boy, aunt missing for three days

The pair are missing from Kamloops

Daredevil changes game plan to jump broken White Rock pier

Brooke Colby tells council daredevil event would help boost waterfront business

Liberal bows out of byelection after singling out Jagmeet Singh’s race

Karen Wang says she made comments online that referenced Singh’s cultural background

Truck hauling compressed gas for ‘virtual pipeline’ crashes on B.C. highway

Driver charged and highway closed for nine hours - containers did not rupture

Canucks rookie Elias Pettersson ‘feeling good’ after knee injury

Pettersson said he wasn’t feeling any pain during Wednesday’s skate

Most Read