Letter from City of Langley re: Provincial Employer Health Tax

Re: Provincial Employer Health Tax

At its May 14, 2018 Regular Council meeting, the Council for the City of Langley considered a report from the City’s Director of Corporate Services regarding the Province’s announcement that it will be implementing, commencing January 1, 2019, an employer health tax to replace the Medical Services Plan premiums that individuals currently pay. The report is enclosed for reference.

Council subsequently passed the following resolution:

WHEREAS the Province of BC has introduced an Employer Health Tax (EHT) in the form of a new 1.95% payroll tax starting January 1, 2019 in order to replace the Medical Service Plan (MSP) premiums which will not be fully phased out until January 1, 2020;

WHEREAS in 2019, the City of Langley will be required to pay approximately $236,000 for the EHT in addition to the $55,000 for the MSP which will require a 1.0% property tax increase to fund the additional costs;

WHEREAS the EHT will transfer the tax burden from individuals to businesses causing unintended consequences on the local taxpayers as the primary source of revenue for local governments is through property taxation;

THEREFORE BE IT RESOLVED THAT the Province of BC exempt local governments, regional districts and school boards from the imposition of the EHT to lessen the financial burden on local taxpayers, especially those that are on fixed incomes.

Council further resolved:

THAT correspondence be sent to all BC municipalities urging each municipality to write to the provincial government requesting the elimination or reduction of the newly implemented Employer Health Tax.

Yours truly, CITY OF LANGLEY

Kelly Kenney Corporate Officer

Enclosure