Op Eds

Open Letter to Mayor Alto and Victoria City Council

Dear Mayor Alto and Council,

On behalf of the Greater Victoria Chamber of Commerce and our 1,400+ members, I want to begin by congratulating you on your leadership in achieving the Province of British Columbia’s housing targets. The City of Victoria has made remarkable progress in expanding its residential base, with thousands of new homes added in recent years and more on the way. This is a significant accomplishment that reflects your commitment to building an inclusive, livable, and sustainable city.

As we look ahead to the 2026 municipal budget, the Chamber is asking you to hold or reduce the business property tax rate. This request is grounded in a shared vision: a vibrant, resilient Victoria where residents and businesses thrive together. It is also supported by data and our shared commitment to tax fairness and economic recovery.

A Shared Vision: Fairness, Recovery, and Vibrancy

In 2024, Council adopted a policy to reduce the business‑to‑residential tax ratio to 3:1 by 2030. The first steps taken in 2025, reducing the ratio from 3.67:1 to 3.5:1, were meaningful and appreciated. Freezing the business tax rate in 2026 would continue this progress and demonstrate your commitment to an equitable tax structure.

In practical terms, the gap remains significant. In 2025, the business property tax rate in Victoria was $11.81 per $1,000 of assessed value, compared to $3.37 per $1,000 for residential properties. This means local businesses continue to shoulder a tax burden more than three times higher than homeowners, even as the residential tax base grows rapidly. Holding or reducing the business tax rate in 2026 would be a meaningful step toward closing this gap and aligning tax policy with Council’s stated goal.

This is not just about fairness. It’s about ensuring that Victoria’s businesses, the backbone of our economy, can continue to operate, hire, and invest in our community. It’s about preserving the vibrancy of our downtown and neighbourhood commercial and industrial districts. And it’s about recognizing that while the residential tax base has grown significantly, businesses continue to carry a disproportionate share of the property tax burden.

With tariffs, ongoing inflation, and the high cost of doing business in British Columbia, local employers are being squeezed from all sides. These pressures fall directly on the workers and families who power Victoria’s economy and contribute to the vitality of our neighbourhoods. At a time when businesses are struggling to stay open, municipal tax decisions can either compound these challenges or help provide much‑needed relief. Holding the line on business property taxes in 2026 would be a clear signal that the City is committed to supporting the people who keep Victoria working.

The Data: A Growing Residential Base, a Struggling Business Sector

Between 2016 and 2021, Victoria’s population grew by 7.1%, from 85,792 to 91,867. Thousands of new residential units have been added since then, with 667 new homes completed in the downtown core alone in 2023.

In contrast, the number of active business licences in Victoria has remained flat. While 2023 saw a 5% increase in new licences, 17% fewer businesses renewed their licences compared to 2022. Nearly half (48%) of downtown businesses say they would consider leaving if their lease expired today. One in five gave downtown a failing grade as a place to do business.

The Opportunity: Leadership Through Stability

We recognize the fiscal pressures facing municipalities. But we also know that a modest reduction in the tax burden made possible by residential growth and new development can provide meaningful relief to the hard‑working people who own and operate businesses, without compromising services.

In 2025, Council demonstrated this by limiting the business tax increase to 5.6%, while residential rates rose by 8.18%. A freeze in 2026 would build on that precedent and accelerate progress toward the 3:1 goal.

We commend Council’s support for targeted tax relief programs, such as the Harris Green pilot. However, a citywide freeze on the business tax rate would have a broader and more immediate impact, helping to stabilize our commercial base and prevent further erosion of our downtown economy.

Mayor Alto, you have spoken about the need to support businesses and to build a city that works for everyone. Freezing the business property tax rate in 2026 is a concrete step toward that vision. It sends a clear signal to the workers, retailers, restaurateurs, and commercial and industrial service providers that Victoria values their contributions and wants them to succeed.

We know there are practical solutions to these challenges and look forward to continuing to work with you to build a stronger, more equitable, and prosperous Victoria. Let’s continue this important work together.

Sincerely,

John Wilson
Chief Executive Officer | Greater Victoria Chamber of Commerce

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