Understanding Vancouver’s property tax policy

Since 1983, the City of Vancouver has had the power to determine municipal property tax distribution. In that year, the ratio of commercial to residential property tax was approximately 2:1. Today, the ratio has swelled to more than 4.3:1, well above the regional average of 3.5:1.

The Vancouver Charter requires council to annually review the tax share paid by each property class. Initially this power was used to ensure that residential properties did not pay an escalating share of the municipal property tax in comparison with business properties.

Although previous councils should have made small tax shifts from business to residential classes each year, it was politically difficult to do. Beginning in 1994, some city councils began shifting one per cent annually, but this was only done for four years. As a result, commercial properties continued to bear a disproportionate share of the municipal property tax burden.

Where we are headed

The Vancouver Fair Tax Coalition will work to ensure successive city councils apply the one per cent tax shift until such time as a sustainable tax distribution is achieved.