Review the Business Climate

How it's done

The business climate is the general economic environment that local businesses operate in. Reviewing and understanding the local business climate provides valuable insights about the economy, costs, risks, and incentives that may impact the success of your business. This activity will guide you to better understand the business climate in Penticton and help you answer the following fundamental questions.

What is the business climate in Penticton?

We have compiled the most important aspects of Penticton’s business climate as an interactive dashboard below. This dashboard provides valuable economic, resident, household, dwelling and development indicators that may influence the success of your business.

What costs and assistance should I know about?

Whether you have a new or existing business it is critical to be aware of costs, incentives and grants that impact your business. This dashboard provides you with a snapshot of the major costs of conducting business in Penticton and assistance available to Penticton businesses.

Property owners in the City of Penticton pay property taxes that help pay for city services such as recreation facilities, parks and trails, utilities, city streets and storm drain systems. Some property taxes are based on the provincial assessed values, while other taxes are a flat or pro-rated amount for each parcel or fixture. Commercial properties within the designated Downtown district see a levy on their taxes that goes towards the Downtown Penticton Association, which is a Business Improvement Association.

What is the tax rate? When the annual budget is adopted by Council for the current year, Council passes a bylaw. This bylaw sets a levy rate for every taxable parcel of land, as defined on the BC Assessment Roll. This levy must be sufficient to raise revenue to pay all debts and obligations of the City falling due within the year. This rate, called a multiplier, applies to each $1,000 of net taxable value by property class. This rate is referred to as the General Tax Levy. The City of Penticton is not the only authority that taxes properties in the City. Five other taxing authorities derive a portion of their annual revenue from the property base:

  1. Regional Hospital District
  2. Regional District Okanagan Similkameen
  3. BC Assessment (BCA)
  4. Municipal Finance Authority (MFA)
  5. School District #67

The City of Penticton has little or no control over other taxing authorities’ levies nor the way they are distributed to properties in the City. However, to reduce the administrative cost of billing and collecting these other property taxes, the City of Penticton is the designated collector and includes these levies on the tax bill sent to property owners each year.

The City of Penticton prides itself on having one of the lowest tax multipliers for business in B.C. This has been a strong contributing factor in making Penticton one of the most entrepreneurial cities in Canada, as identified by the Canadian Federation of Independent Business’s 2015 & 2016 national rankings. See how our multiplier stacks up against other communities and the number promoted by CFIB as a reasonable, competitive rate.

Our current property tax rates and bylaw information can be found here.

How do I use this information?

Having access to business climate statistics and information is one thing, but it's quite another to use data effectively and in a way that will benefit your business. This next section will help you do just that. Learn how to use this information to make better business decisions.

Monitor the local business climate

On-going assessment of the business climate is an essential part of operating a competitive business. In any business climate, there are numerous factors outside your control that will impact your business, both positively and negatively. The health of the economy impacts all businesses, but small businesses usually feel the effect of economic changes faster than big businesses. Improvements in the economy typically provide a rapid increase in new opportunities for small businesses, while an economic downturn can have a significant and prolonged negative impact.

Unfortunately, you can’t influence the economy, but you can monitor the business climate indicators provided above and then take the necessary actions to minimize risks to your business. Staying up to date with the business climate can also help you identify new opportunities that your business can take advantage of.

Know your costs

All industries are unique and incur different types of costs when starting or operating. Understanding these costs is essential when it comes to setting prices, budgeting and planning for growth or downturns. We’ve provided some of the local costs associated with taxes, development and labour that often get overlooked by businesses. There may be other municipal and provincial costs that apply to your business so we encourage you to contact us to find out more.

Where can I learn more about the business climate?

While we are providing you with a range of valuable information about the business climate, the fact is that there's much more available. In this section we provide you with links to other websites that will supplement our information and help to keep your finger on the pulse.

There may also be other municipal and provincial costs that apply to your business so we encourage you to contact us to find out more.

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