As much as the BC NDP government was elected on a promise to make the province more affordable, there are many recent announcements that, in fact, will have the opposite effect. I will share a few recent examples as many citizens might be unaware of how these changes could impact them.
Here in the Okanagan we have many “accommodation providers” - it may be those who seasonally rent out a basement suite, a secondary residence or a condo up at ski hill. Cabins, bed & breakfasts, even trailers and outbuildings in many cases have become part of a secondary income to help people pay the bills as these accommodations are temporarily rented out to visiting guests.
Currently, those who rent out fewer than four units have been exempt from registering and, in turn, charging PST to their guests. Recently, the NDP Government has decided that effective October 1st this exemption is being eliminated.
As a result, all accommodation providers will be required to become a PST registrant and charge PST (8 per cent Provincial Sales Tax on accommodation) and MRDT (up to 3 per cent Municipal and Regional District Tax Program) where applicable.
As the deadline is October 1st of 2018 for registration, those affected can obtain more information online at www.gov.bc.ca/pst or call 1 877 388-4440 toll free.
For non-seasonal renters who rent accommodation year-round such as a rented house or condominium as examples, you may also be receiving a rent increase. The BC NDP government has announced that landlords can increase the rent up to a maximum of 4.5% in 2019. For more information locally, you can visit the Service BC Office located at 40 Calgary St. in Penticton.
Finally, for residential property owners you may also see an upcoming increase in property taxes in the future due to the fact that BC NDP government has created a new employers health tax to replace MSP Premiums.
In 2019, BC municipalities like Penticton will be paying a larger share of revenue to provide health benefits to employees then in previous years as the new Employers Health Tax is payable along with a portion of the former MSP premiums.
The employer’s health tax is based on the size of the payroll. Once a payroll exceeds $1.5 Million it is taxed at the maximum rate of 1.95%. As the City of Penticton has a payroll in excess of $23 million, almost 2 per cent on the total will create added cost pressures for Penticton and other municipalities who are funded through property taxes.
Finally, I would like to add that soon citizens will receive a mail-in ballot from Elections BC for the upcoming referendum on electoral reform. Ballots should arrive near the end of October. I will save my personal thoughts on this referendum for another occasion, however, I would like to encourage citizens to visit the Elections BC website at www.elections.bc.ca or contact to 1-800-661-8683 to learn more and to ensure your registration information is correct.
Dan Ashton is the MLA for Penticton, representing Penticton, Naramata, Summerland and Peachland. He can be contacted by phone at 250-487-4400 or by email at dan.ashton.mla@leg.bc.ca.