A call to business community members to make their position on the B&O tax known
Vancouver, the self-proclaimed "Open for Business" city, is about to enact a tax that may cause some to simply move their businesses out of the city and others to take Vancouver off their short list for relocation. If this happens, it is likely the city won’t be in the running next year for the "Open for Business" award, which was bestowed by Gov. Gregoire during last week’s state Economic and Workforce Development Conference.
After having done away with a citywide B&O tax over the past eight years, the Vancouver City Council is on the verge of reinstating this "regressive" tax. The city describes a transportation system in desperate need of maintenance and expansion, as well as a need for more public safety personnel, driven by a surging population. Consequently, the council needs approximately $4 million more a year, and the business community looks to be the only remaining option for raising that money.
When asked what he is hearing from business owners and managers, councilmember Dan Tonkavich says he is not hearing much at all. Though the Greater Vancouver Chamber of Commerce has been outspoken about various tax proposals in the past two years, outside the leadership of the Chamber there appears to be little outrage in the business community.
VBJ Reporter Jodie Gilmore called dozens of businesses in the city to gauge a reaction to the proposed tax, and after a week received only three return calls. While Jodie ultimately talked with more than the three business owners, it was hardly the reaction of a business community supposedly outraged by an unfair tax.
Perhaps business owners are too busy. Maybe it is too much or too futile to mount a challenge against "city hall." The 60-day postponement prior to council action was made to collect reactions from business owners and leaders. Clearly it also gives city staff time to make the case to the business community; city Chief Financial Officer, Lloyd Tyler, spoke at a B&O tax forum sponsored by the Greater Vancouver Chamber of Commerce last week.
Earlier this year, Mayor Royce Pollard pointed out that it’s impossible to please everyone with one solution – when a proposal changes, it simply brings different people to the council, complaining of unfairness. Given that, he reasoned the council should simply move ahead.
The lack of response to the current proposal gives the council the green light to take a bite out of local business revenues up to three times higher than previous proposals that council once believed were too risky.
As a member of the business community, if you are comfortable with the idea of a B&O tax, there is no need to do anything – the council will take care of it in a little over a month. If you are not in favor of this tax, you must take action. The easiest way is to visit the city’s Web site, www.cityofvancouver.us/bandotax.asp, and let the council know that you are opposed. The site asks whether or not you support the proposal and your rationale; whether you agree with the projects the new tax is intended for; and finally for your ideas to close the revenue gap if a B&O tax isn’t the answer. Don’t let the business community disappear into the silent majority. Regardless of your position on this issue, give the council the benefit of your opinion.
