Cost of Doing Business

Cost of Doing Business

Property Taxes

Comparing property taxes across municipalities is difficult because the tax rate is only part of the equation that determines the actual taxes paid (the value of the land being the other part of the equation). Nevertheless, the chart above provides some insight into municipal taxes for Elkford compared to several other communities in the region. Elkford’s land values are the lowest of the communities listed; actual taxes paid in Elkford are relatively less than the tax rates above indicate.

Property Taxes

Development Costs

Development cost charges, which are levied on developers to cover the municipality’s infrastructure costs, are minimal for commercial development in Elkford compared to other communities in the region. Costs for residential development are similar to other  communities, while no charges are levied for industrial development.

Development Costs

Feberal & Provincial Taxes

Sales and value-added taxes in Canada are levied by the federal and provincial governments only – there are no municipal sales taxes.

The Province of British Columbia has a 7% sales tax. Various business inputs, including production machinery and equipment, software development, and construction labour, are exempt from the tax.

Canada has a 5% value-added tax called the Goods and Services Tax (GST). It is fully recoverable for all business inputs.

Corporate and personal income taxes are levied by both the federal and provincial governments, although all taxes are filed together and paid to the federal Canada Revenue Agency.

Corporate Income Tax

Employers pay workers’ compensation and employment insurance premiums on their company payrolls:

Workers’ compensation premiums
(2009) are determined by the type of business activity and average $1.56 per $100 of gross payroll for all types of businesses.

Employment insurance premiums
(2009) are based on gross payroll up to $39,000 per worker. The rate is 2.422% of payroll; the maximum annual cost per worker is $1,024.51 (if worker is paid $42,300 or more).

Canada Pension Plan premiums (2009) are paid by both employers and employees. Employer premiums are paid at a rate of 4.95% to a maximum contribution of $2,118.60 (based on employee earnings of $46,300).

For a complete summary of taxation in British Columbia, see the Invest B.C. website at www.investbc.com/businesstaxation.htm

Utilities

Electricity: BC Hydro: 1.800.224.9376, www.bchydro.com
Natural Gas: Terasen: 1.888.224.2710, www.fortisbc.com

Municipal Service Rates

Water - Residential: $190.00 annually
Water - Commercial:
  • Light Use - $229.00 annually
  • Medium Use - $303.00 annually
  • Heavy Use - $614.00 annually
Sewer - Residential: $125 annually
Sewer - Commercial:
  • Light Use - $126.00 annually
  • Medium Use - $192.00 annually
  • Heavy Use - $527.00 annually
Garbage - Residential: $75.00 annually
Garbage - Commercial: $340.00 annually ( 1 weekly pick up) or $680.00 annually ( 2 weekly pick ups)