Last summer, I wrote an op/ed on the loss of the light industry property tax credit, and the damage it will do to job creators. Today, this email arrived from a Surrey, B.C., business owner, who gave me permission to post it here:

I am writing to express my very serious concern with the changes the Provincial Government is making to the Provincial Industrial School Property Tax Credit for Class 5 (Light Industry). These changes have the province phasing out the tax credit over 2013 & 2014, resulting in substantial increases to the tax bill for an industry that has already been under significant pressure for the last few years.  I am also greatly concerned about the significant rise in the mill rate instituted by the City of Surrey in 2013.

While I can understand the government's need to find additional revenue to help achieve a balanced budget, the province has arbitrarily singled out one class of industry in its attempt to do so, with no prior notification to those who would be affected. This action has serious implications for many businesses in this class.  This sector provides many meaningful jobs & contributes greatly to the provincial & municipal economies, but actions like this, that erode our competitiveness, greatly affects our ability to continue to do this.

I realize that the mill rate is determined by the City of Surrey.  The rise in the mill rate for Class 5 from 6.4 in 2012 to 10.8 in 2013, is also of great concern, making it extremely difficult to operate business in a productive manner.

My business is located in the City of Surrey. My School Tax Rate went from 6.4 in 2012, to 10.8 in 2013.  This resulted in my gross school tax amount going from $17,337.60 in 2012, to $35,132.40 in 2013.  The school tax credit in 2012 was $10,402.56 and $21,079.44 in 2013 for a net school tax cost of $6,935.04 in 2012 and $14,052.96 in 2013. This was a net increase of $7,117.92 in direct taxation for which our business receives no benefit.

Class 5 is being taxed by both levels of government in a way that makes it prohibitive for small business to operate in an efficient & competitive manner--to provide jobs and contribute to our provincial and municipal economies.  Since I can only assume, at this point, that the current rate of 10.8 will be maintained, and that the credit will be eliminated entirely in 2014, our business will be forced to additionally pay an amount of over $21,000.00 in 2014 (plus any increase in property value).

I would urge the Provincial & Municipal governments to re-evaluate these changes to the School Tax Credit for Class 5 properties and look at the serious increase in the mill rate for these properties on behalf of the many business owners seriously affected by this change.