The Canadian Federation of Independent Business (CFIB) is a non-profit, non-partisan business association that seeks to give independent business a greater voice in determining the laws that govern business and the country. With 109,000 members across Canada, and 10,000 in BC, we are the largest organization exclusively representing the interests of small- and medium-sized businesses (SMEs) to all levels of government.

The tax gap once again narrowed – after rising from 2.74 in 2005 to a peak of 2.90 in 2009, the gap now stands at 2.60 in 2015.

The report also highlights a worrisome trend; as municipalities grow, they tend to put a greater tax burden on businesses. The tax gap for the twenty largest cities in BC stood at 3.04 in 2015, far above the provincial average of 2.60. The worst tax gaps were among some of the most populous municipalities in BC: Coquitlam at 4.24, Vancouver at 4.15 and Burnaby at 3.98.

On a brighter note, the major municipalities’ tax gap has also fallen in recent years, down from a 2006 peak of 3.64. However, it remains far too high and continues to burden businesses, slowing down economic growth in BC.

To ease the municipal property tax burden on small business, municipal governments should:

1. Cap the property tax gap between businesses and residents at a maximum of 2 to 1.

2. Provide earlier property tax notices for commercial taxpayers.

3. Allow commercial taxpayers to remit taxes in monthly or quarterly installments.

4. Extend the homeowners’ grant to business owners occupying live/work spaces.

5. Close the gap without raising the business tax rate.

6. Move away from utilizing a flat tax rate for residential properties.