HAPPY VALLEY-GOOSE BAY, N.L. - The town of Happy Valley-Goose Bay can’t afford to give businesses in the town a break on taxes during COVID-19, according to remarks by the deputy mayor at the last council meeting.
“As much as we would like to be able to provide tax relief to individuals and businesses in these trying times, the town is not in a position to do that,” Bert Pomeroy said.
Mayor Wally Andersen said that the town had lost a lot of revenue through the closure of recreation facilities and other town properties and COVID-19 has created challenges.
The remarks were regarding a letter that had been sent to the town by Bonnie Quigley, a local Subway franchisee, asking for a minimum three-month abatement on municipal taxes.
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“There are businesses in the community that have closed shops, and it is very unlikely they will reopen,” the letter read. “A very sad situation, and we need a ‘pause’ button on expenses to survive this.”
The two chambers of commerce in Labrador are also asking municipalities in the region to offer tax relief to support small businesses. A release from the Labrador North Chamber of Commerce (LNCC) and Labrador West Chamber of Commerce (LWC) said tax relief, deferrals and discounts are some things needed to keep small businesses in the region alive.
“This is an unprecedented time and municipalities need to employ unprecedented measures to effectively respond to immediate local business needs,” said LNCC chair Andy Turnbull. “Without strong support from Labrador municipalities, some of our local establishments will undoubtedly remain closed once mandatory closures are lifted.”
Turnbull said the current revenue losses coupled with tax payments and loan repayments will be too burdensome on local businesses.
Some municipalities in the province have offered tax breaks to businesses, such as Corner Brook. The city is offering a two-month business tax holiday for qualifying businesses most significantly impacted by the COVID-19 outbreak, and no interest on business taxes or residential and commercial property owing for the months of March and April.
The municipalities of Paradise and St. John’s are offering deferral to businesses impact by COVID-19. The Labrador chambers said while measures like that are appreciated, businesses who were mandated to close their doors in mid-March and collecting no revenue will not have the cash flow or reserves to pay.
Federal help needed
The Federation of Canadian Municipalities (FCM) is calling on the federal government to step in and help municipalities who are facing financial pressures. One recommendation they are making is that the government ‘monitor trends in property tax delinquencies and consider additional supports for individuals and businesses that may not be able to pay property taxes after the expiry of short-term municipal deferral programs.’
Paul Thomey, a small business owner in St. John’s and part of Save Small Business, a national coalition of over 35,000 small businesses, said they understand municipalities are facing challenges right now too and other levels of government needs to step in.
“It’s got to be at the federal level for support, it’s a national issue,” he said. “The initiative has to be from the federal government to take on these projects and support the other two levels of government.”
SaltWire reached out to Labrador MP Yvonne Jones for comment from the federal government but did not receive a reply as of press time.
Evan Careen is a Local Journalism Initiative reporter covering Labrador for SaltWire Network
