Tax and Utilities

Federal/Provincial Taxes

British Columbia’s combined federal and provincial corporate tax rate is lower than any jurisdiction in the United States. Personal tax rates are similarly competitive. British Columbian businesses will enjoy one of the lowest corporate income tax rates in the G7 by 2012.

  • B.C. residents pay the lowest provincial personal income tax in Canada for incomes up to $119,000. Taxes have been reduced numerous times since 2001, benefitting businesses, individuals and families.
  • B.C. residents pay the lowest provincial personal income tax in Canada for incomes up to $119,000. Taxes have been reduced numerous times since 2001, benefitting businesses, individuals and families.
  • B.C. taxes businesses at a rate of 2.5 per cent on their first $500,000 of business income, a threshold that has been increased by 150 per cent since 2002.
  • B.C. has no general corporation capital tax, no employer payroll taxes, no franchise tax and no machinery sales tax.
  • B.C. provides refundable tax credits and exemptions for software development, manufacturing, research and development, mining, oil and gas, film and TV production, new media, international financial activities and licensing intellectual property from a British Columbia location.
Src: http://www.britishcolumbia.ca/Invest/Business%20Climate/Pages/CompetitiveTaxClimate.aspx

Municipal Commercial Taxes

Castlegar’s commercial taxes (2011) are competitive:

  • Utilities: $5794/$100,000 assessment
  • Major Industry: $3950/$100,000 assessment
  • Light industry - $2228/$100,000 assessment
  • Business Other - $2177/$100,000 assessment

Commercial property taxation (per $1000 commercial assessment, 2011) is comparable to Vancouver and Calgary, and is lower than the Canadian average:

  • Canada - $27.56
  • Vancouver - $18.11
  • Calgary - $15.61
  • Castlegar - $20 (light industry and general business)
Src - http://agendaminutes.calgary.ca/

The 'wildcard' in any tax competitiveness calculation is assessment value – which is much lower than Vancouver and Calgary metropolitan regions, generating lower taxes for comparable enterprise operating space. On a square foot basis, this property tax advantage (2011) is demonstrated as follows:

Castlegar representative commercial property1- $1.70/sq. ft.
Calgary industrial2 - $1.75
Vancouver industrial2 - $2
Calgary downtown Class B commercial2 - $5.04
Vancouver downtown Class B commercial2- $8.50

1Src: pdf
2Src: pdf

Electricity/Natural Gas Utilities

Providers

Electricity: FortisBC: 1866.436.7847 or www.fortisbc.com
Natural Gas: FortisBC Energy Inc. (formerly Terasen Gas): 1.888.224.2710 or www.fortisbc.com

Current Market Rates

Electricity and gas rates are variable based on market pricing. Utility costs can be a significant business cost depending on the type of business. To help you plan costs associated with your business venture, current market pricing as of Fall, 2011 is:

  • Electricity rate (small commercial service) – $193 annually plus $8.439 cents/kWh Rates for larger enterprise are available on the FortisBC website - Fortis Electricity Rates

    Canadians pay average electricity prices that are lower (in many cases substantially lower) than most other industrialized countries in the world. B.C. rates are lower than the Canadian average of 10.78 cents/kWh in 2010. Src: Canadian/global electricity pricing
  • Gas rate (small commercial/industrial operation) – $299 annually plus $7.974/GJ Rates for larger enterprise with higher annual consumption are available on the FortisBC website - Fortis Gas Rates

Municipal Water/Sewer/Garbage Utilities

The City of Castlegar provides a full range of municipal services, including legislative services; fire protection; , garbage collection; cemetery interment; land use planning; building inspection; transportation services; parks, recreation and leisure services;, and water and sewer services.

Municipal Utility Rates (2011):

Commercial/Industrial:

Water (metered): flat rate $35.00 per quarter + $0.35/cubic metre consumption rate; (unmetered) – range of commercial rates depending on land use (rate and connection fee information - Water Rates).

Sewer (metered): flat rate $35.00 per quarter + $0.35/cubic metre consumption rate; (unmetered) – range of commercial rates depending on land use (rate and connection fee information - Sewer Rates)

Garbage: commercial/industrial enterprise is responsible for arranging private sector pick-up.

Residential (single family, annual):

  • Water - $356.92
  • Sewer - $300.00
  • Garbage - $119.00

Rates are metered for multi-family housing.