Langley East MLA Rich Coleman says businesses, especially farms in his constituency are facing major cost increases from the employer health tax. (Hansard TV)

B.C. health care payroll tax approved, takes effect Jan. 1

Employers calculating cost, including property taxes increases

The B.C. government’s employer health tax has been steered through the legislature with little notice, and employers with payrolls of $500,000 and larger are bracing for its impact.

Municipalities are preparing property tax increases to cover the payroll tax and Medical Services Plan premiums they will continue to pay at half rate next year. Finance Minister Carole James decided they would not get the exemption given to school districts, post-secondary schools and health authorities. Non-profits are exempted for annual payroll up to $1.5 million.

The tax takes effect Jan. 1, 2019 at 2.9 per cent on payroll between $500,000 and $1.5 million and 1.95 per cent on payroll amounts above $1.5 million. James said the 1.95 per cent rate is tied with Ontario for the lowest payroll health tax across other provinces, and emphasized that MSP premiums were reduced by half on Jan. 1, 2018.

Business leaders and opposition critics focused on the double taxation for 2019, and the extension of payroll tax to seasonal farm workers and others whose employers don’t pay MSP premiums.

RELATED: NDP tax increases adding up for B.C. residents

RELATED: B.C. Green MLA worried about payroll tax impact

Langley East MLA Rich Coleman told the legislature that municipalities in his area are looking at property tax increases between 2.5 and three per cent to cover the double cost next year. That means “probably about 90 per cent” of business leases will go up. One local farm that has operated for 40 years is facing a $100,000 increase in payroll costs for 2019, he said.

B.C. Green Party MLA Adam Olsen warned of the impact on large private employers in his Saanich North and the Islands constituency. An electrical contractor with 280 employees and a payroll of $20 million a year is looking at nearly a 10-fold increase in costs from 2017 to 2019, Olsen said.

James presented the payroll tax legislation at the same time as her government’s speculation tax on empty homes, which got most of the attention as she announced rate reductions demanded by B.C. Green Party leader Andrew Weaver.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UPDATED: Interior Health to add 495 long-term seniors care beds

Nelson, Kelowna, Kamloops, Vernon and Penticton to receive new facilities

Donnie’s Golf Tournament heads into year six

All proceeds of the event go to the BC Children’s Hospital Foundation

Provincial COVID-19 data can now be used for B.C. to prepare for a second wave

In the past week, B.C. has seen a slight spike in daily test-positive case counts

Clearwater Elks taking a hit because of COVID-19

President Marnie Burnell noted the group was already hurting before the pandemic came into effect

Back in Time

Historical Perspective

21 new COVID-19 cases confirmed in B.C. as virus ‘silently circulates’ in broader community

Health officials urge British Columbians to enjoy summer safely as surge continues

Tough time for tree fruits as some B.C. farm products soar

Province reports record 2019 sales, largely due to cannabis

Northern Indigenous cannabis cultivation facility to supply over 60 private B.C. stores

Construction to soon resume on Nations Cannabis in Burns Lake

‘Let’s all do a self-check’: Okanagan mayor reacts to racist vandalism targeting local family

Home of Indo-Canadian family in Summerland was targeted on evening of July 13

Province agrees to multimillion-dollar payout for alleged victims of Kelowna social worker

Robert Riley Saunders is accused of misappropriating funds of children — often Indigenous — in his care

B.C. businessman David Sidoo gets 3 months behind bars for college admissions scam

Sidoo was sentenced for hiring someone take the SATs in place of his two sons

PHOTOS: Inside a newly-listed $22M mega-mansion on ALR land in B.C.

The large home, located on ALR land, is one of the last new mansions to legally be built on ALR land

Thousands of dollars in stolen rice found in B.C. warehouse

Police raid seizes $75,000 in ‘commercial scale’ theft case

COVID-19 gives B.C. First Nation rare chance to examine tourism’s impact on grizzly bears

With 40 infrared cameras deployed in Kitasoo-Xai’Xais territory, research will help develop tourism plan with least impact on bears

Most Read