Translink hits homeowners again

Yellow Fever · April 2nd, 2009, 07:54 AM

TransLink hits homeowners again

By Jeff Nagel - Surrey North Delta Leader

Published: April 01, 2009 2:00 PM
Updated: April 01, 2009 2:54 PM

Metro Vancouver homeowners will pay nearly $18 more in TransLink property taxes this year as the cash-strapped authority moves to collect one of its last untapped revenue sources.

Much of the increase comes from an extra $9 million that will be taken from homeowners via the "replacement tax" – a separate category of property tax the provincial government empowered TransLink to collect to make up for the elimination of the despised parking stall tax in 2007.

Originally, businesses were to pay the entire $18-million replacement tax, since they had paid the parking stall tax for two years until it was axed.

But Victoria bent to lobbying from business groups and gave TransLink the ability to apportion the tax as it wishes and spread some of the pain to residential payers.

Last year TransLink's board intended to make homeowners pay half the bill, but backed off after last-minute protests.

This time, the board stuck with the plan – a $600,000 home will pay an extra $11 in replacement tax.

That typical home will also pay $6.78 more in regular property taxes to TransLink.

Altogether a $600,000 home will pay $221 to the transportation authority for 2009, up from $203 last year – a nearly nine per cent increase.

In contrast, businesses will pay 3.1 per cent more in combined TransLink property taxes.

Board chair Dale Parker rejected suggestions the board has stacked the tax hike too heavily on residents.

"The view was it was a fair approach to take," he said in an interview.

"When you look at the overall collection, the commercial side is paying a large amount in actual dollars."

Parker noted the average business assessed at $1.7 million will pay $2,975 in 2009, $59 more than last year.

The rates were set in a closed-door meeting last Friday.

TransLink will collect a total of $263 million in regular property taxes this year – up three per cent – plus the $18 million replacement tax to help fund its $1 billion budget.

Even so, it expects to spend $100 million more than it takes in this year, and will draw down its accumulated reserve to balance the books.

Its reserves will run out by 2012, when TransLink will face annual operating deficits of at least $150 million a year – forcing service cuts if it doesn't gain increased revenue sources.

The new property tax hike this year is separate from TransLink's proposal to raise up $450 million a year extra from a combination of sources, including a vehicle levy and container tax.

TransLink's board has the power to collect the replacement tax and increase property taxes by the rate of inflation, but greater increases or new sources require approval of the mayors council.

DrT · April 2nd, 2009, 04:49 PM

I never like to see a tax increase, but this increase is really very small. Nothing on the order of magnitude that new home purchasers will have to pay in Ontario due to the harmonization of sales taxes that was just passed there. I feel that the money was spent efficiently, without fraud and abuse, and am OK with paying it.

April 2nd, 2009, 07:54 AM	#1
Yellow Fever Screw the racists Join Date: Jan 2008 Location: Hongcouver / Wetcouver Posts: 3,610	Translink hits homeowners again *TransLink hits homeowners again* By Jeff Nagel - Surrey North Delta Leader Published: April 01, 2009 2:00 PM Updated: April 01, 2009 2:54 PM Metro Vancouver homeowners will pay nearly $18 more in TransLink property taxes this year as the cash-strapped authority moves to collect one of its last untapped revenue sources. Much of the increase comes from an extra $9 million that will be taken from homeowners via the "replacement tax" – a separate category of property tax the provincial government empowered TransLink to collect to make up for the elimination of the despised parking stall tax in 2007. Originally, businesses were to pay the entire $18-million replacement tax, since they had paid the parking stall tax for two years until it was axed. But Victoria bent to lobbying from business groups and gave TransLink the ability to apportion the tax as it wishes and spread some of the pain to residential payers. Last year TransLink's board intended to make homeowners pay half the bill, but backed off after last-minute protests. This time, the board stuck with the plan – a $600,000 home will pay an extra $11 in replacement tax. That typical home will also pay $6.78 more in regular property taxes to TransLink. Altogether a $600,000 home will pay $221 to the transportation authority for 2009, up from $203 last year – a nearly nine per cent increase. In contrast, businesses will pay 3.1 per cent more in combined TransLink property taxes. Board chair Dale Parker rejected suggestions the board has stacked the tax hike too heavily on residents. "The view was it was a fair approach to take," he said in an interview. "When you look at the overall collection, the commercial side is paying a large amount in actual dollars." Parker noted the average business assessed at $1.7 million will pay $2,975 in 2009, $59 more than last year. The rates were set in a closed-door meeting last Friday. TransLink will collect a total of $263 million in regular property taxes this year – up three per cent – plus the $18 million replacement tax to help fund its $1 billion budget. Even so, it expects to spend $100 million more than it takes in this year, and will draw down its accumulated reserve to balance the books. Its reserves will run out by 2012, when TransLink will face annual operating deficits of at least $150 million a year – forcing service cuts if it doesn't gain increased revenue sources. The new property tax hike this year is separate from TransLink's proposal to raise up $450 million a year extra from a combination of sources, including a vehicle levy and container tax. TransLink's board has the power to collect the replacement tax and increase property taxes by the rate of inflation, but greater increases or new sources require approval of the mayors council.

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April 2nd, 2009, 04:49 PM	#2
DrT "The Ignorant Fool" Join Date: Jun 2005 Location: JAX,MCO,YVR,YYZ,SRQ Posts: 2,590	I never like to see a tax increase, but this increase is really very small. Nothing on the order of magnitude that new home purchasers will have to pay in Ontario due to the harmonization of sales taxes that was just passed there. I feel that the money was spent efficiently, without fraud and abuse, and am OK with paying it.