Business in Vancouver: the role of taxes and services

This study explores the interaction between municipalities and local lobby groups, specifically the validity of demands made by Vancouver’s powerful business lobby regarding local property tax rate impacts. The study uses regression analysis to examine why some GVRD municipalities might have more businesses than others. Results suggest that population and residential property taxes have significant and strong effects on the number of businesses in a municipality where property values, access to rapid transit and big box stores do not. Where the business lobby’s key concern of commercial property taxes are shown to be statistically significant, the effect on location is negligible and these findings reduce the validity of their demands for policy change. Based on this analysis, the study suggests that the City of Vancouver not give in to the demands of business and instead conduct an information and public consultation campaign to better balance public input on this issue.