British Columbia

Small business owners not impressed with B.C.'s new property tax relief plan

Small business owners and non-profit organizations in Vancouver say the province’s new property tax recommendations won’t provide the relief they need.

'This new recommendation is too little too late,' says evicted business operator

Sarah Savoy of clothing store Much and Little says high rents forced her from a previous location to a smaller, more affordable space. (Sarah Savoy/Much and Little)

Small business owners and non-profit organizations in Vancouver say the province's new recommendations — meant to lessen taxes for some — don't provide the immediate fix and meaningful relief needed to help their struggling businesses.

"It's urgent," said Denise Brennan, executive director of Creative Coworkers, a non-profit collective. 

"For me, this new recommendation is too little too late," she said.

Earlier this week, the province introduced a new interim program to allow local governments to provide property tax relief to small businesses and non-profit groups in the 2020 tax year.

The measure is meant to help businesses, non-profits, and arts and culture venues that are struggling with high leases due to skyrocketing property values.

The program will allow municipalities to enact their own individual bylaw to exempt a portion of the property tax for affected businesses, within a set of parameters decided by each municipality.

Eviction notice

Brennan has been operating her shared workspace for the last five years, but was forced to close down after getting an eviction notice three weeks ago. 

"The increase in property tax eliminated any potential to earn a living, or to get out from under our operating costs," she said.

Vancouver Mayor Kennedy Stewart expressed concern this week for small business owners and said he fears the new legislation is unworkable, as many cities will struggle to sort through the implications ahead of the April 22 tax deadline.

"There is a chance this could make things worse," said Stewart.

Sarah Savoy leases space on Main Street for her clothing store Much and Little. She says her rent more than doubled in the past 18 months and she was forced to find a smaller, more affordable space.

"It's rough, it's been very challenging," said Savoy. 

"There's only so much revenue you can generate out of a smaller space."

Savoy said she has considered selling her clothing online but keeps coming back to the need for a brick-and-mortar presence in the community.

"Having that face-to-face with customers and suppliers, that's very important to me as a business owner," she said, noting her sentiment is shared by many other small business owners.