Langley residents could see tax hikes to cover MSP for local government

The school district and both municipalities are looking at the implications of the B.C. budget.

Langley Township and City will pay plenty in payroll taxes to cover the MSP changes announced in last week’s budget.

The province announced it was phasing out MSP premiums for 2020 and implementing a new payroll tax to cover premiums.

“The new 1.95 per cent payroll tax being implemented by the provincial government will cost the City of Langley approximately $236,000, in addition to the $55,000 in reduced MSP premiums which won’t be phased out until 2020,” said Darrin Leite, the City’s director of corporate services.

Municipalities such as the City won’t have to start paying the extra right away but will have to face additional costs come 2019.

“How the additional costs will be paid for, will be determined during the process of drafting the 2019 financial plan,” he added.

If the additional payroll tax costs are covered by property taxes, City taxpayers would an increase of 0.8 per cent next year.

The Langley School District is awaiting more information from the Ministry of Education.

“As the announcement is so recent, the district is still awaiting clarity from the Ministry of Education on exactly how this will look,” explained communications manager Ken Hoff. “Calculation and impact would be a part of the amended budget process due to the timing.”

Langley Township is still assessing the MSP premium changes.

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