Small businesses push back as Vancouver's proposed fee hikes go before council
Tensions were high at Vancouver City Hall on Wednesday as stakeholders spoke out against fees that increase residents’ and businesses’ bottom lines.
Council voted unanimously in favour of the report to increase fees at the Standing Committee on City Finance and Services. Among the itemsĀ is a jump for a business license from $171 to $250.
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City staff said the increase for things like business licenses, animal licenses, ride-sharing operator fees, parking metres, and more will balance the budget. The report says the increase in fees would put $15.2 million back in the city’s coffers and is in line with other municipalities.
However, there were some critics waiting to speak Wednesday against it, suggesting the City is nickel and diming struggling residents.
It comes amidst a sky-high property tax increase this year by the new council, at 10.7%, and a threat that the tax would remain in the double digits for years to come. For many small businesses, the property tax due to the city could be to the tune of $60,000 a year, which does not include other expenses.
Many business owners have lamented that the increase comes as they fight rising costs due to inflation as well as seeing a surge in crime-related expenses like window repairs in several prominent areas.
Many businesses are also facing escalating triple net leases due in part to rising property values from the āhighest and best useā of the property.
Emily Boston with the Canadian Federation of Independent Business (CFIB) argued against the increase to City Council, saying “now is not the time.”
“In such a challenging economic environment we ask council to consider does it make sense to add more costs for businesses and residents through increased user fees?”
“To raise the cost of a standard business license by nearly 50%, for some, this might seem like a minor adjustment but for struggling small businesses, doubling this recurring expense can be the point between survival and closure.”
The fee increases have been sent back to staff to help developĀ the 2024 Draft Budget.