Business owners concerned with 'massive' tax hike in Victoria

Downtown Victoria is shown. (CTV News)

The City of Victoria has made its final decision on its property tax rate for 2023.

If you live in B.C.'s capital, you'll be paying an increased 6.15 per cent this year.

For businesses, however, it's a different story.

The average homeowner will see an increase of between $100 and $200 due to the tax increase.

A typical business will see an increases of about $500.

However, businesses that are categorized as "light industry" are being hit with a hike of 22 per cent, while heavy industry – like those in the Inner Harbour – will see a jaw-dropping 37 per cent increase.

The Ralmax Group, which owns the Point Hope Shipyard and other businesses in the harbour, is the only business categorized as "heavy industry" in the city.

Its owner is calling it "disturbing" to be singled out, saying he needs more information to understand the broader implications of such a dramatic hike.

Another business owner is also upset.

"Local business can't keep on taking massive hits," said David Screech, owner of Greggs Furniture and Upholstery.

"We already pay a lot in the City of Victory property taxes, so 22 per cent more, it's a huge hit to local business."

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The city says the changes in the industrial classes reflects large property assessment increases this year.

Councillor Jeremy Caradonna has concerns about the bump in industrial taxes and retaining businesses downtown, but felt families need to come first.

"Someone has to pay the taxes, right?" he said Friday.

"If we hadn't increased taxes on light industrial, heavy industrial, and in fact commercial, then more of that falls onto residential taxpayers," said Caradonna.

"We felt that our homeowners and property owners here in Victoria are already paying a lot and families are struggling to make ends meet," he said.

Caradonna says the city will be reassessing its business tax policy in the future.

This year, residential property owners will pay nearly 53 per cent of the property tax collected by Victoria, while businesses will pay 45.5 per cent.

Industrial properties will pay about one per cent of the total tax bill.