Coun. Roger Lemieux does not want to see businesses pay more than their "fair share" for the Servus Place tax levy.
Starting in 2009, commercial and business owners will be asked to pay more per $100,000 of assessment than homeowners. The plan, to be phased over three years, would see business owners pay $55 per $100K of assessment by 2011, compared to $29 for homeowners.
The split levy follows the 86-14 "tax burden ratio" city administration uses to calculate the remainder of municipal property taxes. The ratio ensures homeowners contribute 86 per cent of city tax dollars, despite the fact residential property makes up 91 per cent of all assessment.
Just last week, St. Albert Chamber of Commerce chair Rob LeLacheur called the tax burden ratio a "tax grab," before he urged council to keep the current one-to-one ratio for the Servus Place levy.
Lemieux plans to introduce a motion next week that would accomplish just that. He said a split levy flies in the face of the 2004 plebiscite that authorized Servus Place construction.
"Businesses should pay their fair share, but we shouldn't, in the middle of it all, change the game plan," Lemieux said today. "The game plan is to take away from the residential burden and give it to the business and burden them."
Lemieux, a former business owner himself, believes homeowners will support the idea of sticking up for local businesses, even if it means slightly higher taxes.
If his motion is approved, the residential tax increase would jump to 6.04 per cent, up from 5.91 per cent.
Business owners would see their tax increase fall to 6.83 per cent from 7.55 per cent.
Council will debate the motion once it's formally moved on Dec. 22.
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