Dear Mayor and Members of Council:

On April 11, 2000, the Citizens' Advisory Group on Property Taxation met to discuss the distribution of the overall tax levy among property classes. On behalf of the members of the group, I would like to forward a recommendation regarding the distribution of the tax burden between the residential and non-residential property classes. The group unanimously recommends the following:

THAT the Citizens' Advisory Group on Property Taxation requests that for the 2000 taxation year Council re-implement the shift of one percent of the tax burden from the non-residential classes to the residential class that was first implemented in the 1994 taxation year.

The Citizens’ Advisory Group on Property Taxation feels that a one percent shift will help to address the inequity of the distribution of the tax burden. In 1995, KPMG’s “Study of Consumption of Tax-Supported City Services” suggested that the residential class consumes more of the City’s services than the other classes. At the same time, the business class pays a higher tax rate than residential properties. The 2000 tax rates illustrate this disproportionate tax rate; without a one percent shift, Class 06 properties will pay $15.14 per $1,000 taxable value, while Class 01 properties will be charged $2.92 per $1,000 taxable value. This is a ratio of 5.2:1. By shifting one percent of the tax burden to the residential class in 2000, this ratio will be reduced to 5.0:1, which would continue the gradual shift to a more equitable distribution of the tax burden among property classes.

We look forward to future opportunities to provide advice to Council on property taxation related issues.

Yours very truly,

Afton H. Cayford
Chair, Citizens' Advisory Group on Property Taxation

(c) 1998 City of Vancouver