B.C. Finance Minister Carole James. (Tom Fletcher/Black Press)

No municipal break for B.C. health care payroll tax

Non-profits, school districts, universities still being considered, Carole James says

Municipal governments will have to cover the costs of the B.C. government’s health care payroll tax, because they can raise property taxes to do it, Finance Minister Carole James says.

The tax is being phased in starting January 2019, as Medical Services Plan premiums are phased out with a 50 per cent reduction taking place at the same time. For municipalities that already pay MSP premiums on behalf of their employees, extra costs for 2019 will have to be covered.

“They aren’t going to get any relief,” James said Monday when asked about municipalities who are looking at raising property taxes.

“We’re still in discussions with charities, not-for-profits, school boards and universities, the groups that don’t have the ability to be able to bring in revenue.”

RELATED: Fraser Valley farmers face payroll tax

The Union of B.C. Municipalities surveyed members as they prepared their 2018-19 budgets and they reported their costs are expected to double between 2017 and 2020 as a result of the payroll tax. The City of Victoria is considering a two per cent increase to cover the extra costs.

The “employers health tax” takes effect in 2019 at 1.95 per cent of payroll for businesses and organizations with payrolls of more than $1.5 million. A lower rate applies for payrolls between $500,000 and $1.5 million, and those below $500,000 are exempt.

The payroll tax applies whether employers pay their employees’ MSP premiums or not. James emphasized that while property taxes may go up, individuals stand to save $800 a year or more if they have been paying their own MSP premiums.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Heat and smoke raises health risks

Rick Stiebel - Sooke News Mirror Health risks arising from heat and… Continue reading

Esquimalt man faces four charges of sexual assault, investigators suspect more victims

71-year old Kit Wong practiced acupuncture from his home during the time of the assaults

Greater Victoria-based digital crisis line sees spike in chats

Service allows youth to chat with volunteers through instant messaging services, text message

Mark your calendar with these West Shore events

Three great coming up this week including a movie screening, water gun battle and car show

Rollover crash in Colwood occurred after driver had epileptic seizure

Colwood Fire used the Jaws of Life to extricate two people inside the vehicle

Interim GoFundMe payments approved in Humboldt Broncos crash

$50,000 to be given to each of the 13 survivors and each family of the 16 people who died

Altidore nets 3 as Toronto drubs Whitecaps 5-2

Vancouver falls 7-4 on aggregate in Canadian Championship final

Ottawa intervenes to get B.C. ball player, 13, to Little League World Series

Before immigration issue was resolved, Dio Gama was out practicing the game he loves Wednesday

Pet goldfish invades small B.C. lake

Pinecrest Lake is located between Whistler and Squamish

Mounties deployed to help B.C. communities affected by wildfires

RCMP officers heading to places particularly within central, northern and southern B.C.

Quebec sets aside $900 million for companies hurt by U.S. tariffs

Premier Philippe Couillard says his government will make $863 million available over five years

B.C. company patents Sasquatch, the country’s first homegrown hops plant

Created by Hops Connect, Sasquatch hops are being grown commercially for the first time in B.C.

Most Read