B.C. Finance Minister Selina Robinson speaks in the B.C. legislature, March 2, 2021. (Hansard TV)

B.C. Finance Minister Selina Robinson speaks in the B.C. legislature, March 2, 2021. (Hansard TV)

B.C. NDP ministers defend ‘air tax,’ latest COVID-19 business aid

Empty home tax doesn’t apply to businesses, but space above them

B.C. Premier John Horgan started the spring legislature session under fire for his government’s speculation tax on apartments that haven’t been built yet, and the latest grant program for businesses affected by the sudden return of COVID-19 restrictions on indoor dining.

Opposition MLAs confronted the NDP government with live examples of businesses hit with new speculation tax bills of up to $6.500 on the unbuilt space above their urban businesses that are closed due to COVID-19 or struggling to stay open. What has become known as the “air tax” is primarily municipal property tax that reflects the current zoning rather than an existing building, and now the province’s speculation and vacancy tax is being applied on top of that.

Finance Minister Selina Robinson told the legislature Monday her ministry is intervening for a handful of cases where property owners are passing on speculation tax to their commercial tenants, but the tax is appropriate for owners who have zoned their property for higher-rise residential.

RELATED: B.C. extends deadline for small business, tourism aid

RELATED: Online sales development fund gets another $10M

“Those people who take the air parcel and rezone it for residential, they are speculating,” Robinson told reporters April 13. “And what that does is of course it triggers the speculation and vacancy tax, if they do not redevelop that land, that air that is now technically in many ways land for homes.

“If the landlord is in the redevelopment process then there is an exemption for them, and they do not have to pass it along. But let’s be really clear. There are about 190 properties in the entire province that are doing the split assessment, and they have by choice decided to reclassify the air parcel above them from commercial to residential. And you do that when you’re planning to redevelop, or it may be the case you’re choosing to reduce your tax burden because the residential portion is taxed at a lower rate, which is, I think, problematic as well.”

B.C. Liberal MLAs questioned Jobs Minister Ravi Kahlon on his latest effort to provide coronavirus aid to businesses, this one to compensate them up to $10,000 for losses when provincial health officer Dr. Bonnie Henry imposed an infection “circuit breaker” that shut indoor service at restaurants and pubs for three weeks starting March 30. The short notice left many establishments stocked up for weekend business, then forced to close or restricted to patio service. It also shuttered fitness centres, breweries and wineries, which are eligible to apply for grants in a program that opened on Tuesday

Kahlon refused to comment on examples of businesses qualifying for only $2,000 or more depending on the number of employees, or that the money came from a previous COVID-19 business relief fund that went unspent because not enough businesses could qualify.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureBC politics

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Jaimie Davis won received a Northwest Community College President’s Art Award in 2018. This year, she won the Best Solopreneur Award from Small Business BC for her online shop Jada Creations. (Contributed photo/Northwest Community College)
Terrace artist wins provincial small business award

Jaimie Davis of Jada Creations won BC Small Business’ Best Solopreneur Award

Chera Bergen (left) with her sisters Hali and Dylan Ouellet (not in the picture) raised money through a bottle drive in Terrace to buy essential supplies for a homeless shelter. (Binny Paul/ Terrace Standard)
Terrace sisters’ recycle drive raises money for homeless shelter

With the $1175 raised, Chera, Hali and Dylan bought essential supplies for Ksan Society

A memorial march takes place along Highway 16 also known as Canada’s ‘Highway of Tears’ on national day of awareness of Murdered & Missing Indigenous Women and Girls (MMIWG). Over five dozen people from nearby communities joined the march which began outside Terrace City Hall and ended at the memorial totem pole erected along Hwy 16, near Kitsumkalum. (Binny Paul/Terrace Standard)
‘City of Terrace can and should make spaces safer’: MMIWG activists

Activists called on governments to amplify safety net for women on national day of awareness of MMIWG

RCMP are reminding the public to be aware of their surroundings after a stabbing sent a man to hospital on May 4, 2021. (Black Press Media File Photo)
Terrace stabbing sends man to hospital

RCMP remind the public to be aware of surroundings

The construction site for the new Mills Memorial Hospital has been cleared. (Binny Paul/The Terrace Standard)
Bird nests key to decision to log hospital site in Terrace

Nests would have posed a risk of increasing costs

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

Pieces of nephrite jade are shown at a mine site in northwestern B.C. in July 2019. THE CANADIAN PRESS/HO-Tahltan Central Government MANDATORY CREDIT
Indigenous nation opposes jade mining in northwestern B.C.

B.C.’s Mines Act requires operators to prepare a plan to protect cultural heritage resources

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman’s body found in Kootenay National Park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

People pass the red hearts on the COVID-19 Memorial Wall mourning those who have died, opposite the Houses of Parliament on the Embankment in London, Wednesday, April 7, 2021. On May 3, the British government announced that only one person had died of COVID-19 in the previous 24 hours. THE CANADIAN PRESS/AP-Kirsty Wigglesworth
For a view of a COVID-19 future, Canadians should look across the pond

Britain, like Canada, is one of the only countries in the world to delay second doses for several months

Edmonton Oilers’ Connor McDavid (97) celebrates his 100th point this season with Leon Draisaitl (29) against the Vancouver Canucks during second period NHL action in Edmonton on Saturday, May 8, 2021.THE CANADIAN PRESS/Jason Franson
Edmonton superstar McDavid hits 100-point mark as Oilers edge Canucks 4-3

NHL scoring leader needs just 53 games to reach century mark

Nuns of Mother Teresa’s Missionaries of Charity, carry some of her relics during a vigil of prayer in preparation for the canonization of Mother Teresa in the St. John in Latheran Basilica at the Vatican, Friday, Sept. 2, 2016. In which city did she do much of her charitable work? (AP Photo/Gregorio Borgia)
QUIZ: How much do you know about these motherhood issues?

In honour of Mother’s Day, take this 10-question quiz

A map showing where the most number of cases were recorded from April 23 to 29. This map, revealing a breakdown of infections by neighborhood, was pulled from a data package leaked to the Vancouver Sun last week (and independently verified).
36 Abbotsford schools flagged for COVID-19 exposures in the last 2 weeks, shattering record

Clearbrook Elementary recorded an ‘exposure’ on all 11 school days

Most Read