At least one individual thinks the way Yorkton assesses property taxes is unfair to business properties and Monday he appeared before the regular meeting of Yorkton to let his views be known.
During the election many of the council potentials were asked about city infrastructure. The most common answers had to do with how important our recreation, roads, sewer and water were but I never heard anyone discuss the business core, noted Doug Henheffer, owner of Chicken Cow's Hearing Centre in the city.
Henheffer noted that a solid business core is vital, and without a strong business core the city would struggle.
When it comes to taxation Henheffer did acknowledge the city has faced some issues out of its control.
鈥�The province decided to change the way they distribute their tax revenue in an effort to provide a better financial base leaving this city and others caught unaware. There was little advanced knowledge and the local budget had been pretty much decided. Local taxes were going to go up and there was little one could do about it,鈥� he said.
In addition, this was the year Sask. Assessment Agency updated commercial property raising the values, in a lot of case, considerably, he noted.
As a result property taxes went way up that year, said Henheffer.
鈥�In the building I occupy, taxes went up 75 percent, year over year,鈥� he said.
Henheffer said when he called the City as a result of the hike he was told he was lucky as some businesses saw a 200 per cent increase.
At the time Council held the line on residential taxes placing the burden on business, suggested Henheffer.
Henheffer said the discrepancy becomes clearer when it is realized there are about 6000 residential properties and only 600 commercial ones, but the two sides pay a similar share of the tax pie.
Lonnie Kaal, City Manager later told Council business properties pay about 55 per cent of the property taxes collected.
鈥�I know each commercial property may have more than one business that shares this amount, that is a fair point, but that sector one way or another still pays for it. Even if the building is vacant ... those taxes get paid,鈥� said Henheffer, adding, 鈥淐ase in point; the building I occupy pays over $20,000 per year in city property tax. My portion (1250 sq ft), costs $5,000 a year.鈥�
That all said Henheffer said he just wants to start a dialogue on the issue.
鈥�The purpose of this letter is not to point fingers but to spark conversation. Attention is needed. Right now the business sector is as challenging as it ever has been. Just note all the 鈥渇or sale鈥� and the 鈥渇or lease鈥� signs throughout the city. This should serve as a warning,鈥� he said.
Henheffer said it is time the City became creative in helping business.
鈥�In the over 20 years I have lived here, I have never heard of a small business revitalization plan put forth by the City,鈥� he said. 鈥淚 do hear about projects like roads, sewer, a new city hall, roundabouts and skating rinks.鈥�
The business is needed.
鈥�Yorkton enjoys a surrounding area of around 150,000 people. This is unique and many come to this city to shop. This gives Yorkton a competitive advantage in attracting more business. Taxes are often a factor; indeed some businesses choose to locate outside the city limits because of tax considerations,鈥� said Henheffer.
鈥�Here is a fact; the more businesses we have, the more taxpayers we have, the greater the money we have for recreation, hospital equipment, roads, sewer, perhaps a new city hall.
鈥�As Council prepares for the new tax roll, don't ignore the stress your business community is in.
鈥�The City needs to lead (this year of all years the status quo cannot be maintained). The City needs to come forward with creative solutions that fairly shares the tax burden among all and encourages small business growth.鈥�
