Colwood council are looking at ways of removing financial stress for residents and businesses due to the ongoing coronavirus pandemic.
One of those plans is to scrap the 3.5 per cent property tax increase this year, instead approving a 0 per cent increase in municipal property tax for 2020.
The average Colwood homeowner will therefore not see an increase over their 2019 municipal taxes unless a home’s value increased more than the average in the past year.
See also: City of Victoria reduces parking fees, eliminates property tax hike for 2020
The city will also bring in a five-year phased approach to align business tax rates with the regional average, starting in 2020.
“Recognizing the financial stress residents and businesses are under, Colwood Council is unanimous in their desire to support the community through this crisis and position the City for a strong economic recovery,” reads a statement from the City of Colwood.
Prior to the COVID-19 pandemic, Colwood’s five-year financial plan proposed a 3.5% tax increase in 2020 to fund service expansions, capital projects and sustainable infrastructure replacement.
To achieve a zero increase in 2020, Council supported shifting some of the service expansions in its five-year financial plan forward several months into 2021.
“Shifting some of the service expansions forward into 2021 allows us to give Colwood taxpayers the relief they need right now,” said Mayor Rob Martin.
The revised financial plan includes expanding Colwood’s RCMP strength in 2021.
“West Shore RCMP does a phenomenal job. Expanding Colwood’s RCMP service in 2021 will keep Colwood well ahead of the curve in accelerating police strength to align with population growth over the next 10 to 20 years.”
See also: B.C. will reduce commercial property tax bills by an average of 25%
Colwood council said they have also been reaching out to business owners directly through surveys and roundtable meetings to better understand the impact COVID-19 is having on their business, and how they can best help support them for successful recovery.
On April 9th, the City of Victoria announced the elimination of a property tax increase for 2020.
The due date for property taxes was also extended to August 4th, which Mayor Helps says is as far as they could push it “for a number of reasons”.
The city has also approved a “graduated late property tax penalty”, which means penalties for late payment can now be made over a longer period of time.
Originally, penalties for late payment were 5 per cent on July 1st and 5 per cent on August 1st. This graduated penalty system ensures that those who have to pay their property taxes late can pay off a penalty of 2 per cent per month from August til December.
Earlier this week, the Ministry of Finance and Ministry of Municipal Affairs and Housing announced that commercial property tax bills will be reduced by an average of 25 per cent.
This is being done by reducing the school tax rate for commercial properties enough to achieve an average 25 per cent reduction in the total property tax bill for most businesses.
