Survey Says No to Tax Shift, Tighten Your Belts

Think City has released the results of its third annual Citizen Budget survey that show Vancouver residents oppose Mayor Gregor Robertson's continued support of the previous council's plan to shift a greater share of the tax base from commercial taxpayers to residential homeowners. They also do not support tax increases beyond three per cent, a level that will require the city to tighten its belt and make targetted cuts in some areas.

Residents supported maintaining current spending levels for most city services while reducing spending on general administration and internal waste and mismanagement. The majority of participant would also like to see an increase in civic grants given to community groups.

In tough economic times, the tax shift is seen as an unfair burden on homeowners already facing a significant tax increase. Opponents of the tax shift (45.6%) outnumbered supporters (21.4%) by more than two to one, while a large majority (64.5%) wanted the city to look at alternative options to help small and med-sized businesses without shifting taxes from big business to residential property owners.

The impact of the tax shift on making rental housing and home ownership less affordable for the vast majority of Vancouver residents clearly needs to be analyzed in the light of the survey's findings which reveal high levels of concern about housing affordability (74.2%) homelessness and poverty (75.8%) and transportation (73.9%) as Vancouver's top three policy priorities.

On the question of tax increases, 21.7% of Think City participants supported a zero per cent tax increase, 42.4% supported a two to three per cent tax increase, and 35.9% supported a four to six per cent tax increase. When participants were asked what, if any, additional tax increases they would accept for new or expanded services, 35.2% said zero per cent increase, 19.6% said one per cent increase, and 17.7% said two per cent increase.

Based on this research, Think City believes there is little public support for tax increases beyond the two or three per cent that is required to maintain most city services at or near current levels. Belt-tightening at city hall, such as the hiring freeze, the ban on outside consultants, and cuts to wasteful spending will find considerable public support.

Residents are aware of the challenges the city faces in trying to balance its budget. Almost three quarters (72.3%) of participants believe senior levels of government must contribute more to the city's budget through transfers and revenue sharing, while 47.9% believe the city should be given new taxation powers - to allow for measures such as a hotel room tax and a rental car tax.

The Think City Citizen Budget survey attracted over 1,800 participants more than triple the number who participated in the City of Vancouver's own budget survey.

Correction: Think City incorrectly implied that the Coalition of Progressive Electors (COPE) supported Mayor Gregor Robertson's plan to continue following Mayor Sullivan and the NPA's 2008 plan to shift taxes from businesses to residents. COPE is opposed to the tax shift and its two councilors are expected to vote against this year's two per cent shift.

Click here for a complete summary of the Citizen Budget survey.