West Kelowna way behind in tax revenue collection

Photo: Contributed

The COVID-19 pandemic has had a detrimental affect on businesses and residents across West Kelowna.

That is no more evident than the value of municipal taxes remitted by business and residential taxpayers by the July 2 deadline.

In a report for council, director of finance Warren Everton says in 2019, about 92 per cent of taxes were paid by the July deadline. Penalties would kick in if monies were not paid by then.

However, due to the pandemic, city council has eased off on penalties and taken other steps to ease the financial burden of taxpayers.

As a result of financial hardships endured, Everton says only 80 per cent of overall taxation has been paid to the municipality, leaving an $11.5 million shortfall.

Ten per cent penalties won't kick in until Oct. 1.

Everton says there is presently a $9.36 million (81 per cent) shortfall in residential tax payments and $2.2 million (72 per cent) deficit in collection from business and other categories.

Despite the shortfall, Everton writes in his report the city remains on"solid financial ground" despite COVID-19.