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

Vancouver Island wife brings husband back to life with CPR, thanks to 911 dispatcher

‘The only reason he was alive was that 10 minutes of CPR before paramedics got there’

Capitol Theatre in Port Alberni hopes to ‘raise the reds’

Lily Diotte of Swale Rock Cafe is fundraising to replace the theatre’s red curtains

Alberni’s development soccer program doubles in size

Development practice had hardly started, but there were already more than 30… Continue reading

Catalyst Paper to sell U.S. mills to Chinese company

Sale will allow company to focus on B.C. interests, says president Ned Dwyer

Alberni university zeroes in on disability and poverty

BY MIKE YOUDS SPECIAL TO THE NEWS The road to poverty can… Continue reading

Trans Mountain pipeline: How we got here

A look at the Kinder Morgan expansion, decades in the making

VIDEO: B.C. woman praises burn fund after boat explosion in 1978

White Rock woman was 16 years old when she was left with second- and third-degree burns

B.C.’s Ryan Craig, Vegas Golden Knights chase history

Local product behind bench for expansion team’s incredible championship run

CP rail workers give strike notice

Employees could walk out as early as Tuesday at 7 p.m. PT

RCMP investigating after gunshots fired in Courtenay

Comox Valley RCMP officers are investigating after gunshots rang out in Courtenay… Continue reading

Suspected scammer attempts to use Black Press newspaper to dupe woman

Canadian Anti-Fraud Centre offers tips after Langley resident received suspicious call

Vote points to abortion being legalized in Ireland

Voters asked whether to keep or repeal Eighth Amendment to Roman Catholic Ireland’s Constitution

COLUMN: Women’s breasts really aren’t that big a deal

A follow on some Princeton, B.C., students gained considerable exposure when they dropped their bras

Most Read