City of Powell River’s 2025 property tax rate options have been introduced, with a proposed 8.63 per cent increase in taxes for an average single-family dwelling over 2024.
At the April 1 committee of the whole meeting, chief financial officer Mallory Denniston introduced the rates with two options. The first was for maintaining the status quo on tax rates for all categories, and the second proposes to provide a rate adjustment to the business classification, dropping the amount businesses would pay, but providing for another three per cent increase for residential taxpayers.
Denniston said council had adopted the 2025 property tax rate bylaw on March 27 to establish the 2025 levy at $26.8 million, which is a 9.5 per cent increase over 2024.
She said council would now be dealing with the property tax rates bylaw, with both needing to be adopted before May 15.
Denniston said direction from council was to continue to use the current property tax rates setting methodology, along with an option to decrease the business class property tax ratio to three times the residential property class amount from 3.7 times. She said the second option would provide for a 17 per cent lower rate for business, and a three per cent higher cost for the remaining classes.
“In dollar terms, option two would result in a further increase of $95 for an average single-family dwelling, for a total property tax increase of $382, instead of $287 under option one,” said Denniston. “The report recommendation is that members of the committee direct staff to prepare the 2025 property tax rates bylaw in accordance with option one. This recommendation is on the basis that the property tax rate-setting methodology would add additional volatility to property taxpayers, and in this time of high uncertainty around the Catalyst Paper Tis’kwat mill site’s property value and class.”
Denniston said the first three readings of the tax rates bylaw would be presented to council on April 17, and it would be up for adoption on May 8. She said amounts from other taxing authorities such as qathet Regional District, qathet Regional Hospital District and qathet School District are anticipated to be provided to the city by April 11, at which time, taxpayers can get good, estimated calculations using the city’s online property tax calculator.
Councillor Cindy Elliott said she would like to lower the cost for businesses. She asked if there were other ways to lower business taxation other than through tax rate.
Denniston said unfortunately, it is very difficult.
“In short, no, there is no other way around, other than a decrease in services,” added Denniston.
Mayor Ron Woznow made a motion that members of the committee direct staff to prepare the property tax rates bylaw as outlined in option one of the April 1, 2025, staff report titled 2025 Property Tax Rates Options and adjusted for any changes reflected in the 2025 revised assessment roll, for consideration of first three readings at its regular council meeting on April 17.
Councillor George Doubt said he was in favour of the motion and had looked through the options.
“While it is attractive to help out small businesses and businesses in general by reducing their tax rates, the fact is that when we have a five-year financial plan, there is a revenue requirement, and that revenue requirement will come from a mix of business, utilities, light industry, heavy industry and residences, and there is nowhere else to get the money,” said Doubt. “If you don’t take it from one place, you are going to take it from the other.
“Option two would result in another $100, and I’m not prepared to do that. If we are going to look at the future finances of the city, it is still a simple question. You have to pay for the services you get. If you want to pay less, we are going to have to decide to provide fewer services.”
Doubt said the tax rate is reasonable for the services the city provides.
Councillor and committee chair Rob Southcott said his understanding was that the city is not 100 per cent certain of the assessment value of the mill lands. He said if that is correct, could Denniston provide a date when council will know the mill’s classification with certainty.
Denniston said the city knows with certainty that the assessed value of the mill is about $82 million in the major industry classification. The uncertainty is that owners of the property have appealed the assessed value, she added.
“While it is under appeal, there is uncertainty,” said Denniston. “There is also uncertainty going into 2026 as to whether they will be considered major industry, or if the assessment might determine a different value.”
The motion made by Woznow was passed unanimously.
According to the staff report, under option one, in 2025, municipal property taxes for an average single-family dwelling are listed as $2,866, which is a $187 variance from 2024. Municipal flat tax remains steady at $50, sewer frontage charges go up $8 to $450, user fees go up $27 to $688, and total municipal taxes would amount to $4,054, which is up $322 from 2024.
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