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

Pesky pothole problems persist

Mission mayor wants an explanation, apology from province for neglecting provincial highway

VIDEO: Two-year-old Mission girl dies after she was found unresponsive in pool

RCMP located toddler after she went missing from a daycare

VIDEO: Broken watermain cause of Lougheed flood

Mission crews have repaired the main by Mission Memorial Hospital

Abbotsford high school teacher charged with sexual offences involving two youths

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

Province has been missing in action on flood protection, experts say

Political will to improve dikes lacking, says B.C.’s former flood safety chief

Black Press Media to launch Pipeline Full of Controversy series

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

B.C. RCMP swoop in to save injured eagle

An eagle with a broken wing now in a recovery facility after RCMP rescue near Bella Coola

Mission golf tournament attracts big crowd – including Santa

Event is a fundraiser for the 2018 Mission Christmas Bureau campaign

Bug spray 101: Health Canada wants you to stay bite free

Health Canada is reminding Canadians to use bug spray and other insect repellents safely

Unions reject CP Rail contract offers

Both meeting Friday to determine next steps; 72 hours notice required before strike action.

B.C. jewellers warn public about fake gold scam

‘They are playing on people’s sympathy and their greed’

Former B.C. premier says pot industry about to enter Wild West

Mike Harcourt says Canada is about to enter a new gold rush with many dreaming of striking it rich

Hunt continues for two suspects in Ontario restaurant explosion

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

UPDATE: RCMP on scene to remove homeless housing protesters

Residents blocking the installation of modular housing in Maple Ridge

Most Read