Some downtown business owners are reeling from a 40 per cent tax hike, with at least one proprietor calling it a "nail in the coffin."
"We can take maybe one more nail, then that's it," said Barry Toosi of The Source by Circuit City.
Property taxes were due Tuesday (July 3), and while the average tax bill for businesses went up by eight per cent this year, some stores in the downtown core saw a much larger increase due to rapidly rising assessed values. Some owners are worried the increase will put shops out of business.
"It's a shame when a business is as well known as mine and I'm going to lose money this year because of what the district has done," said Mike Vivian of Home Hardware who saw his tax bill increase from $12,000 to $21,000 in one year.
"You look at Barry and the guys at Source next door, they've been hurt so much by putting those big boxes [stores] in, something like this could literally put them over the edge and put them out business."
The assessed values of a number of downtown businesses increased after Prospero International Realty purchased them last year. Vivian said that the landlord is now passing the tax increase onto the occupants.
Toosi said he is currently looking at asking Prospero to file an appeal. While the district does allow assessed values of property to be appealed, only a property owner can file an appeal.
According to Mayor Ian Sutherland the district does not have the ability to adjust the tax rate to compensate for rising property values in specific neighbourhoods and has to tax the community as a whole. He pointed to the district's Smart Growth policy as well as events held by the Downtown Business Improvement Association, such as last weekend's Canada Day celebration, as an attempt by the district to compensate for the tax increases.
Coun. Jeff McKenzie, who supported this year's tax rate, owns downtown business All Keys and Locks, which also had an above average tax assessment this year.
"It went up 18 per cent this year," said McKenzie. "Sure it's tough and it's another bill to pay.
"But that's the way it works. Some years some areas pay more than others, while sometimes you pay less. This year we saw the increase. It's just the way it goes."
