Abbotsford News
Friday, May 20, 2016
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myBusiness E N G AG I N G C O N S U M E R S • B U I L D I N G C O M M U N I T Y
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Does business pay more to receive less? During the 2016 Municipal budget development process, Abbotsford City Council directed staff to identify options for reducing the tax burden on business properties (tax class 6). In 2016, businesses will pay municipal property tax at a multiple of 2.32 times that of residential property owners. This means that on an equivalent property valued at say, $500,000, a business owner would pay over twice the tax!
for newer and start-up businesses. If a property has vacant stores or offices, the taxes must still be paid. While it is argued that businesses do have the ability to deduct this expense there must still be income to cover the expense. In addition, the sale of the business is subject to capital gains taxation while the sale of a residential property is not. In B.C., the small business sector has established itself as an integral instrument of job creation and economic growth. It is the primary provider of private sector jobs in the province, reflecting an important and ongoing trend toward economic diversification. The small business sector is also a key source of innovation.
In a recent report to Council, city staff identified two scenarios that would reduce the ratio to 2.0 times the residential rate over either one or two years. Council deferred these recommendations to the 2017 budget discussions.
In 2014, B.C. was home to a total of 390,300 businesses, of which 98 per cent (382,600) were classified as small businesses. The majority of small businesses in B.C. are micro-businesses with fewer than five employees. In 2014, about 309,300 businesses fit this description, comprising approximately four out of five of all small businesses. Of these, almost two-thirds were self-employed persons without paid help.
The Chamber of Commerce continues to raise the question, “Does the burden on municipal resources and use of service from business justify significantly higher rates than residential property tax?”. Municipal governments’ provide essential services in their community and these are primarily funded through property taxes. It is clear that fairness would begin with each taxpayer carrying the costs of the services they use. Their share of the cost of indirect services (amenities, infrastructure and maintenance, for example) is more subjective, as the benefits are indirect.
These are not the one per centers! These are the folks who are your plumber, your mechanic, your florist, your printer. They provide your dining, your entertainment, your professional services and trades as well as commercial goods and services. In 2014, approximately 1,010,800 jobs in B.C. were derived from small business, accounting for 44 per cent of total employment in the province. As a matter of fact, small business accounted for nearly a third (just under 32 per cent) of wages paid to workers, well above the Canadian average of just over 26 per cent. It is these jobs that provide economic strength to our City.
The first cornerstone of the City’s 2015-2018 Strategic Plan is a Vibrant Economy, wherein it states “we (the City) focus on developing a vibrant and diverse economic environment”. It further states that “we value and support our existing businesses and ensure we are structured internally to support a vibrant and thriving economy”. The demand placed on municipal services by the business sector is far less than that of the residential population base. In many cases, such as solid waste collection, business bears the cost of this service over and above their property taxes. When the City added recycling and food waste requirements to the business sector, this was a further additional cost that businesses were required to take on. The substantiation of the multiplier cannot be made simply on the basis of a perceived “ability to pay”. A municipality’s residents control aspects of tax fairness and
affordability through the democratic process, they elect the Mayor and Council who control the rates. A fundamental tenet is “no taxation without representation”. Yet business property owners do not have a vote and do not share this same opportunity. Businesses pay property taxes directly or as part of their rent or lease. These taxes are part of overhead that must be paid regardless of revenue or profit. This can prove a barrier
Council needs to clearly demonstrate that Abbotsford is a community where “we value and support our existing businesses and ensure we are structured internally to support a vibrant and thriving economy”. Last fall, the BC Small Business Roundtable recognized Abbotsford with its Open for Business Award for their innovative programs and projects that support local businesses. Reducing the business tax ratio in Abbotsford to 2.0 will send a strong message to the business community that the City recognizes the contribution made by existing small business to the community and is a competitive leader in attracting new business.
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Friday, May 20, 2016
Abbotsford News
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abbotsfordchamber.com
2016
BOARD OF
DIRECTORS Joshua Bach
Petkov kiwi plantation.
PRESIDENT
BC Hop Company harvest.
Absorbent Concepts hop production.
Rice harvester from Masa Shiroki’s field.
Tour our unique agricultural businesses Mark Warkentin VICE-PRESIDENT
Brandon Kelley TREASURER
Find out what makes Abbotsford the Agricultural Capital of Canada! Abbotsford farms and agri-business creates over $1.8 billion for our city’s economy and generates over 11,300 jobs in Abbotsford. In the morning guests will load buses at the Sevenoaks Shopping Centre, from there we will visit all the stops on the tour, enjoying snacks, lunch, and networking along the way. Stops on this year’s tour will highlight niche commodities from the following businesses:
Brad Friesen DIRECTOR
Stu McIntosh DIRECTOR
Kelly Railton DIRECTOR
Sara Lawson DIRECTOR
Mark Dana DIRECTOR
Dave Miller DIRECTOR
PETKOV KIWI PRODUCTION With a Masters Degree in Horticulture, and having worked on professional agricultural projects in Europe and Canada, George Petkov has extensive knowledge and experience in fruit production as well as in viticulture. The desire for healthy, fresh, pesticide-free fruit germinated the idea of growing local kiwi. After a thorough analysis of the climate, soil and market conditions, their kiwi vineyard project took root in 2008. Requiring an ongoing commitment of knowledge, hard work and passion, they have established a beautiful 8 acre plantation. BC HOP COMPANY LTD. BC Hop Co is in the business of world class harvesting, processing and distribution of BC grown hops. Thanks to the incredible growth of the craft beer industry, hops are serious business in British Columbia. Inspired by the great traditions of hop production throughout the Fraser Valley and one of the best hop growing environments in the Pacific Northwest, partner farmers are bringing locally grown
hops back to the Valley. The BC Hop Co mission is to provide the highest quality BC grown hops to brewers. An investment in European processing technology and innovation guarantees we deliver on that commitment. ABSORBENT CONCEPTS INC – FOOD PROCESSING DIVISION Open for business and providing contract and private label de-hulling, cold press oil production, packaging, warehousing and distribution of organic industrial hemp seed related products. Pete Scales, President and Production Manager, started putting the plan together in July 2013 and the first de-hulled product was produced January of 2014. Now, the facility provides processing services in bulk and individual serving sizes to clients all over North America. ARTISAN SAKEMAKER Masa Shiroki is the first to make hand-crafted artisanal sake (rice wine) in Canada and the first to grow his own sake-grade rice to do so. His fields in Abbotsford are the most northerly commercial rice production in the world. Having proven that it can be done, Shiroki is now expanding production from sake-grade rice to include table rice. Established in 2007 on Granville Island, Artisan SakeMaker is known as a unique commercial winery that produces award winning, hand-made, small batch and fresh sake. The philosophy of their production centres upon “sustainability, all natural and locality.” Sponsored by BC Chicken Marketing Board, Community Futures South Fraser, Farm Credit Canada, Fraser Valley Egg Producers Association, KPMG and Royal Bank of Canada.
NEW BUSINESSES: Kristin van Vloten DIRECTOR
Melinda Friesen DIRECTOR
The Abbotsford Chamber would like to welcome the following businesses: Becoming a member of the Abbotsford Chamber of Commerce provides substantial benefits to generate more business and reach the heart of your community.
Craig Toews DIRECTOR
Jason Dykstra DIRECTOR
2016
CHAMBER
TEAM MEMBERS
Allan Asaph
La Vonne Bandsma
allan@ abbotsfordchamber.com
lavonne@ abbotsfordchamber.com
EXECUTIVE DIRECTOR
OFFICE MANAGER
• Northview Apartment REIT .................................604-855-7368 • Drumeo ......................................................................604-855-7605 • Abbotsford Tulip Festival .....................................604-751-6389 • Mr. Locksmith Abbotsford ...................................604-300-7575 • Design2Web Inc. .....................................................604-425-1407
UPCOMING CHAMBER EVENTS LU N C H E O N W I T H K E N P E ACO C K , C H I E F E CO N O M I S T A N D V I C E P R E S I D E N T, B U S I N E S S CO U N C I L O F B C DATE:
Thursday, May 26
LOCATION: Ramada Plaza & Conference Centre TIME:
Carole Jorgensen
EVENT COORDINATOR
carole@ abbotsfordchamber.com
Duncan D’Mello
MEMBERSHIP DEVELOPMENT REP.
duncan@ abbotsfordchamber.com
• Kybe Electrical Contracting Ltd. ........................778-773-5195 • European Day Spa ..................................................604-226-0153 • Good News International Ministries ................604-776-3600 • Dedicated Dental Care..........................................604-852-5067 • John Corrie – Re/Max Little Oak Realty...........604-309-0540
11:30am – 1:30pm
BUSINESS AFTER BUSINESS DATE: Thursday, June 9 LOCATION: Holmberg House TIME:
4:30pm – 6:00pm
AG R I C U LT U R E B U S TO U R DATE:
Friday, June 17
LOCATION: Stops on tour include Petkov Kiwi Production, BC Hop Company Ltd., Absorbent Concepts Inc.Food Processing Division and Artisan Sake Maker TIME:
8:15am – 3:00pm
Abbotsford News
Friday, May 20, 2016
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myBusiness E N G AG I N G C O N S U M E R S • B U I L D I N G C O M M U N I T Y
PRESIDENT’S MESSAGE
Because of our rigorous review of these Resolutions, our provincial MLAs take the final adopted Resolutions seriously, as they truly represent the voice of business throughout BC. Last week, our Board met with representatives of the Chambers of Chilliwack, Langley, Mission, and Maple Ridge, to review these proposed Resolutions in advance of our going to Kelowna. This will allow us to speak in a unified voice at the AGM. I will be attending the AGM, along with our ED and a couple of other Board members. The Canadian Chamber of Commerce also holds an Annual General Meeting which we attend, in September. This year, the venue is Regina. Recently, our ED and I met in Vancouver with reps from virtually every Chamber and Board of
Trade in the Lower Mainland. We are focusing on how to strengthen the voice of business in the Lower Mainland. We have decided to utilize an informal model of a Council. We struck a committee of volunteers (including yours truly) to develop the terms of reference for this model. We’ll be working on this during the summer. Upcoming Events: Our next two events are both on Thursday May 26 - a lunch featuring Ken Peacock, Chief Economist and Vice President, Business Council of BC as the speaker. This is followed by a Business After Business at Kinder Morgan Canada’s Sumas Pump Station. We hold Chamber luncheons with interesting speakers throughout the year. Our Business after Business events are an opportunity to see a business operation from the inside, while networking at the same time.
TAKING CARE OF BUSINESS! Selling, buying or leasing a vehicle? We know you are busy, so let the experts help find what you are looking for.
Don’t forget to sign up for our ever-popular June Agriculture Bus Tour, on Friday June 17. We’ll be visiting Petkov Kiwi Production, BC Hop Co, Absorbent Concepts Inc – Food Processing Division, and Artisan SakeMaker. As you know, the AG business is Big Business here in Abbotsford - our farms and agri-business create over $1.8 billion for our City’s economy, and generate over 11,300 jobs in Abbotsford. Please visit our website at www.abbotsfordchamber.com, sign up and check out our upcoming events.
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“Chamber World”: There are a number of things happening in Chamber World. The BC Chamber of Commerce is holding its Annual General Meeting at the end of May, in Kelowna. The attendees will vote on about 55 proposed Resolutions, covering energy, finance, forestry, health, jobs, small business, and the like. Of course, before we vote, we have two Policy Sessions where we review and discuss each proposal (sometimes in agonizing detail), before we finally agree on which ones to adopt. It’s really very parliamentarian. I find it to be a pleasure to see democracy in action.
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