by Dara Hill

Merritt’s Aspen Planers urged city council to avoid another tax increase at the city council meeting on March 20.

Woodlands manager Jerry Canuel spoke on behalf of the forestry company at the meeting, highlighting the company’s deep roots in the community and the challenges they face.

“Aspen is one of the largest employers in the community. We provide well-paying jobs to over 200 employees directly and another 300 to 400 indirectly. We’ve operated in the valley since the 1950s, and are still owned by the founding family,” he said.

Canuel stressed that the local lumber manufacturing business is continually at risk. He pointed to timber scarcity in the region, elevated timber costs, trade restrictions recently imposed by the U.S. and climbing taxes as factors affecting Aspen’s business.

“Today Aspen pays approximately $900,000 annually in property taxes. That’s about 35 per cent of the entire business taxes paid in Merritt. Our major industry tax rates are roughly nine times, or 900 per cent higher, than the rates paid by residential tax payers,” Canuel said.

“These rates are also three to five times higher than the industrial tax rates in many other interior communities,” he added.

However, director of finance for the City of Merritt Sheila Thiessen reported that Aspen Planers was charged $684,252 in property taxes in 2017 according to the city’s records.

“Total taxes for industry and business charged in the City of Merritt for 2017 was $3,779,845 of which Aspen paid around $600,000 or 16%.” Thiessen said.

She noted that this rate is higher than some municipalities, but lower than others.

Using the examples of Tolko in Merritt and Lafarge in Kamloops, Canuel stated that an unfair tax burden often leads to industry consolidation and relocation to business-friendly climates. He made clear that Aspen may look at relocating if tax rates continue to climb.

“Higher taxes, newer regulations that we’re all faced with and uncertainties make B.C. an increasing less appealing place to do business,” he said.

He went on to explain that Aspen feels strongly they carry an unfair allocation of this burden and is not in favour of increasing taxes any further.

“We neither see any justification, nor support [for] your budget or tax increase,” he said.

City council is expected to set property tax rates for 2018 at the next city council meeting on March 27.