Vancouver wont levy head tax on nonprofits

first_img Bending to public backlash, the Vancouver City Council is walking back its head tax on nonprofit organizations and moving forward with a new proposal.The council is considering a new funding mechanism to raise $6.1 million to pay for additional police officers and staff.If a new plan isn’t agreed upon, a funding mechanism approved last year is set to go into effect Jan. 1, 2019. The previous plan taxes businesses per square foot and landlords per multifamily unit.Vancouver Strong, an advisory group tasked with developing a sustainable funding plan for the city, proposed an alternative funding option earlier this year. The proposal recommended increasing the utility tax 2.2 percent in 2019 and 1.8 percent in 2020 to bring in $2.39 million and $2 million, respectively. The plan also expanded the city’s per-employee business fee by removing a cap on companies with more than 400 full-time employees. Nonprofits with four or more employees would also have had to pay the head tax.City staff recommended a slightly different plan and increased the per-employee exemption to 20 or more employees for nonprofit organizations. Approximately 27 nonprofits would have been impacted by the proposal.However, at the council’s Aug. 27 meeting, nonprofits turned up in full force asking the council to reconsider, citing disproportionate impacts on their organizations. In response, the council sent the recommendation back to city staff for further review in lieu of moving forward to a public hearing. A plan to provide the Vancouver Police Department with $6.1 million in new funding hit a snag when nonprofit organizations objected to a proposal they pay a business license surcharge based on the number of employees they have. last_img

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