Port Moody pushes back on province’s proposed PST expansion

Port Moody council is asking the province to reconsider a proposed expansion of the provincial sales tax (PST), warning it could drive up costs for municipalities and ultimately taxpayers.

In a unanimous vote on June 9, council approved a resolution put forward by Coun. Kyla Knowles that will be submitted to the Union of BC Municipalities (UBCM) for consideration at its annual convention this fall.

Knowles told council the proposal comes at a time when residents and local governments are already grappling with affordability challenges.

“We are suffering from an affordability crisis at all levels,” Knowles added. “I think we all know why this is happening. The province has got a big deficit to make up and climbing debt, but this is not the way to do it.”

The motion calls on the provincial government to exempt local governments and essential municipal services from any expansion of the PST to professional services announced in Budget 2026.

The province has proposed extending the PST to a range of professional services, including engineering, architectural, accounting and auditing services, among others.

According to Knowles’ advocacy memo, municipalities rely heavily on those services for infrastructure projects, community safety initiatives and day-to-day operations. The added tax burden could increase project costs, strain municipal budgets and place upward pressure on property taxes.

She said the proposed tax expansion would further burden residents already struggling with the cost of living.

“This is further pushing affordability issues on to the residents that live here, and of course, municipalities, which have to hand the cost down to our residents and future residents.”

Coun. Diana Dilworth supported the motion, saying concerns about the tax expansion extend well beyond the municipal sector.

She noted a number of industries and organizations across B.C. have also voiced opposition and expressed hope the province would reconsider.

“I believe that the provincial government is quite tone deaf in the implementation of this expansion to the provincial sales tax,” Dilworth said. “I’m hoping that there might be a rethink or an amendment or something that doesn’t download the costs onto our residents. When that happens, we wear it and the province doesn’t.”

Coun. Haven Lurbiecki also backed the resolution, while acknowledging governments need revenue to fund public services.

However, she argued the PST expansion was the wrong approach, describing it as a “rob-Peter-to-pay-Paul situation.”

“I don’t think this was the right place. I think there’s many other places that could be looked at that have not been in that provincial budget, which was disappointing,” she said. “We have to be able to pay for the services, infrastructure, healthcare, all the things we enjoy and rely on every day.”

According to the memo, the proposed tax could increase costs for capital projects, protective services and other municipal initiatives, while potentially affecting project timelines and property taxation processes.

It argues that local governments are already facing pressure to manage infrastructure backlogs and respond to responsibilities downloaded from senior levels of government.

If endorsed by UBCM, the resolution would become part of the organization’s advocacy efforts with the provincial government.