Penticton will see 5.3 per cent tax hike as per 2024 budget plans

5.3 per cent tax hike

Penticton council gave first, second and third reading to adopt the current tax increase to 5.31 per cent for the 2024 year at its meeting on Tuesday.

The staff-recommended budget initially had a tax increase of 8.7 per cent, thanks to the remaining deferred tax hikes from 2022 that were put in place as a temporary relief measure.

Through the three days of budget deliberations in November, council voted to spread that tax burden over the next two years instead, translating to roughly three per cent per year rather than all at once.

The impact on residents translates to an average annual increase of $106 for residential properties, and $414 for commercial properties.

Penticton's Business Tax Multiplier for 2024 rates were lowered slightly for 2024, resulting in a BTM of 1.92 with the 5.31 per cent increase for typical properties.

The multiplier is intended to "maintain a tax burden between residential and non-residential" taxpayers.

"The reduced BTM in 2024 reflects market evaluation shifts between residential and business properties. Residential Property saw a market decline in 2023, unlike the continued increase that we've seen in class five and six properties due to limited availability and steady interest rates," Penticton's director of finance Angela Campbell told council.

"The 2024 BTM is more reflective of assessment distributions as seen in 2021 when the BTM was at 1.91."

She added that based on 2023, Penticton ranks competitively with neighbouring communities.

Coun. Helena Konanz asked whether there was comparisons for how Penticton compares to other communities for business taxes, to which Campbell explained that the province does not provide a comparison for commercial taxes and with every municipality using different multipliers, it's hard to place a general estimation.

Couns. Amelia Boultbee and James Miller voted against the adoption, following the pattern of the last time where they both voted against adopting the budget.

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