Tax Realty Consultant

When it comes to doing business in Canada, there
are a few cities you may want to think twice about before locating or
relocating your business.
    For the first time, the Real Property Association of Canada's annual
survey of property taxes across the country gives Vancouver the dubious
distinction of having the worst commercial to residential property tax ratio
in Canada at 5 to 1. Vancouver now replaces Toronto as the most over-taxed
business jurisdiction in Canada.
    After Toronto and Vancouver, the commercial to residential tax ratio
drops significantly to approximately three and a half to one in Richmond.
St. John's has the lowest commercial to residential tax ratios at roughly one
and a half to one, while Edmonton weighs in at roughly two to one.
    The survey also highlights problems in Regina and Montreal for commercial
properties. Regina has the worst effective annual commercial property tax rate
in Canada, of over 5% of the commercial value of the business on the basis of
$1,000 of commercial assessment. Montreal is the second worst on a per $1,000
basis for commercial properties, at 4.47%.
    The "2007 Property Tax Assessment and Tax Analysis of 2006 Data",
released today by REALpac and prepared by Altus Derbyshire, Realty Tax
Consulting, shows both the range of commercial and residential property tax
assessments coast to coast and the trends amongst urban centres, allowing
REALpac to determine in which cities taxes are going up, going down, and how
quickly. "This survey highlights inequities in the property tax system.
REALpac calls on all municipalities to ensure that commercial and residential
property tax levels are balanced and fair," said Michael Brooks, Executive
Director of the Real Property Association of Canada.
    Employees won't be standing in line to move to Regina, since the city
also has the highest residential tax rate in Canada, with 2.25% of the value
of the property going to municipal tax coffers, followed closely by Winnipeg
at 2.20%. On a $200,000 home in Regina, that's an annual property tax bill of
$4,500. "It's not clear why Regina's commercial and residential rates are so
high as to be leading in both categories, when comparable cities such as
Edmonton, are consistently much lower," said Brooks.
    Head east to St. John's, Newfoundland, to find the least expensive place
to do business in Canada. At less than 2% per $1,000 of commercial assessment,
St. John's is the most business friendly community in the country from a
property tax perspective, followed closely by Calgary and Edmonton. Toronto
weighs in well above average, at slightly over 4% per $1,000 of commercial
assessment, but still less than Regina, Montreal, and Winnipeg.
    REALpac Members believe in tax fairness. REALpac has consistently
advocated that continued reduction of the excessive property tax burden on
commercial and industrial tenants and landlords will make Toronto, Vancouver
and Richmond, more competitive and promote jobs and investment. "The resulting
greater investment will increase the property assessment base, thereby
generating more stable and sustainable revenue for the cities," added Brooks.