Kamloops Chamber reports mixed responses from businesses watching municipal tax rate

Businesses watching tax rate

Photo: Kristen Holliday

People sip coffee while walking in downtown Kamloops in December 2025.

The executive director of the Kamloops and District Chamber of Commerce says a provisional 7.2 per cent tax hike remains a “significant challenge” for some businesses, but last month’s municipal budget reductions have been wholly welcomed.

The City of Kamloops started its budget discussions in 2025 with a 10.76 per cent provisional tax increase, which has since been lowered about three percentage points. Council members and staff say they believe the 2026 tax rate will see further reductions before it receives final approval.

Acacia Pangilinan said the Chamber polled its members in December and “heard pretty strongly” from businesses concerned about the impacts of a double-digit increase, with 84 per cent of respondents bracing for a moderate to significant impact to their operations.

A new round of polling after January budget reductions showed business support for efforts undertaken by the city to lower the tax rate.

“We did have a handful that still felt that there would be a negative or somewhat very negative impact on their business, but overwhelmingly, I think the response was that the members feel those changes are positive,” Pangilinan said.

She said the tax increase is still above inflation, and will remain challenging for some. Businesses are struggling with increasing insurance and repair costs, higher wages, labour shortages, reduced consumer spending and economic uncertainty.

Opportunities for further budget reductions are welcomed by Chamber businesses, Pangilinan said.

“They can understand when times are tough, costs increase, You have to make tough decisions,” she said.

“I don’t think our members are expecting perfection by any means, but they’re definitely looking for assurance that every reasonable option is being examined before the costs are passed on.”

Pangilinan said the Chamber represents more than 730 Kamloops-area businesses in a variety of sectors. Most of the businesses responding to questions on this year’s provisional tax rate were small or medium sized.

In a presentation to council’s committee of the whole in January, Pangilinan said when businesses struggle, this can affect employment, commercial vacancies, core neighbourhood viability, and the city’s future revenue capacity.

“From a business perspective, creating an environment where businesses can succeed is not a concession, it’s an investment that benefits city and residents alike,” she told council members.

Pangilinan encouraged council to “continue prioritizing cost discipline” while providing clear communication about spending rationale and making decisions that support business sustainability and growth.

She said the Chamber saw alignment with the city in its willingness to review service levels and timing, its openness to using reserves, and its adjustments to RCMP contract vacancy rates which lowered the 2026 budget by $500,000.

The Chamber executive director also offered to work with council and the City of Kamloops to push back on provincial cost downloading, noting there was an opportunity to work with chambers across the province on the issue.

Pangilinan told Castanet Kamloops these types of conversations aren’t unique to Kamloops. Business leaders and chambers in many communities are reviewing the economic environment and what can be done to help businesses thrive — including a competitive tax rate that covers essential services while supporting growth.

“Having business perspective at the table and in these conversations is really valuable,” she said.

“If the city’s goal is to grow and stabilize its tax base over time, having thriving small businesses is essential to that outcome.”