Halifax transferring industrial tax burden to enterprise parks

Halifax’s new industrial tax system will shift the burden to enterprise parks so big-box shops pay extra, nevertheless it’s attainable small companies will get caught up within the change.

Throughout a finances committee assembly Wednesday, metropolis workers gave council an replace on what the brand new zone-based tax system with tiered charges might imply for this fiscal 12 months, for the reason that new guidelines come into place April 1.

Municipal industrial taxes in three of the parks — Dartmouth Crossing, Bayers Lake and Bedford Commons — would be the highest and would go up by $5 million total, whereas the opposite zones would see reductions. 

“We’re shifting it to those that can afford it, and people who can unfold it round,” stated Coun. Shawn Cleary.

Councillors famous that altering property tax charges is the one software they must make nationwide chain shops pay extra, and till now the present tax system has weighed closely of their favour.

Coun. Sam Austin stated the present tax system contributed to many years of companies transferring from the city core to the town’s edges the place land worth was decrease.

“It is a small measure to try to right-size somewhat little bit of that,” Austin stated.

However metropolis workers famous that the modifications might see elevated taxes imposed on small companies who’re additionally tenants within the parks.

Beverly Hynes, who owns Seamus David’s Pub in Dartmouth Crossing, stated the modifications come as inflation has her grocery and energy payments going “by way of the roof.”

“We have been by way of sufficient,” stated Hynes, who has been within the park for 11 years. “We’re up amongst a bunch of massive companies, and [we’re] only a small little fish making an attempt to make our manner.” 

It is unclear what the ultimate impression on small companies within the parks will probably be, however workers famous that the very best tax soar for a person property is $283,000 in Dartmouth Crossing, which has smaller retailers in it like 2 Doorways Down and Coconut Creek Reward Store.

Nonetheless, Cleary stated provided that the property is 11 hectares, has eight buildings total, together with a mid-rise, and dozens of companies, the prices for tenants hopefully will not be an excessive amount of.

The downtown neighborhood zone would save essentially the most, and see taxes lower total by $4.2 million. The workers report stated essentially the most tax anyone property saves in any zone is $4,500.

Paul MacKinnon of the Downtown Halifax Enterprise Fee stated it is the equitable factor to do.

He stated since chains like Walmart or Costco have nationwide pricing methods, the enterprise parks they’re in can often climate robust financial instances. MacKinnon additionally stated cities like Toronto have taken this step.

“We all know that companies in downtowns and most important streets had been extra impacted by COVID-19 … so we predict the time is true for this sort of shift,” MacKinnon stated.

When requested about small companies within the parks being affected, MacKinnon prompt having the province grant Halifax new powers to permit for sure exemptions.

Halifax has already requested the Nova Scotia authorities to cross a bylaw that may permit them to part within the tax modifications over three years, and keep away from a painful spike this 12 months.

Whereas the province hasn’t granted that but, Mayor Mike Savage stated Wednesday he is spoken with Municipal Affairs Minister John Lohr, who has agreed to speak with Halifax metropolis workers “to see if we will work this out.”