The province is proposing a tax of up to $12.50 per $100,000 of assessed value for properties that have more than one line of business in Labrador.
The levy will apply to properties that sell more than $100k in taxable sales per year.
“The provincial government has a mandate to promote economic growth and create jobs, and Labrador is well-positioned to capitalize on this opportunity,” Premier Dwight Ball said in a statement.
Premier Dwight Ball says he wants to encourage economic growth, not drive it.
(CBC News)The proposed tax would apply to taxable property lines in a total of 15 per cent of all taxable sales in Labrador, up from 5 per cent.
Alberta’s provincial property tax rate is set to increase from 10 per cent to 15 per per cent over the next five years, starting in 2019.
But the provincial government said it will not apply the tax to more than 10 per a cent of taxable property in any given year.
That is because the province is aiming to promote growth and to create jobs by taxing property lines that can help grow the economy and create more jobs.
Ball said he hopes the tax will help boost Labrador’s economy, noting that a recent study showed Labrador’s unemployment rate is the lowest in Canada, which helped drive the levy.
He also said he is happy with the provincial decision to limit the tax’s scope.
“This is a significant tax that will help support Labrador’s businesses,” Ball said.
“I am glad the provincial governments are working together to develop the right policies for the economy.”
A spokeswoman for the Labrador Taxpayers Association said the tax is a “bombshell” and it is critical that the province work with the province of British Columbia to increase the value of property lines.
While it may not be the first time a provincial government will attempt to increase property tax rates in the province, this is the first of its kind, she said.