Reports to Council

David Hallinan, the City’s Corporate Services Director, provided Council with an overview of the key items outlined in the Province’s 2026 budget that directly impact the City, including:

• expanding British Columbia’s provincial sales tax (PST) tax base to include some professional services
• removing PST exemptions for some goods and services that were once deemed essential but are not as commonly used anymore
• changing the interest rate structure for the Property Tax Deferment Program from simple to compound and adopting a prime plus 2% rate for new loans
• the Province investing $15 million in 2025/2026 to recapitalize the FireSmart Community Funding and Supports program, helping approximately 75 more local governments and First Nations strengthen wildfire resilience through training, equipment, bylaw updates and home-hardening measures

Also outlined were provincial impacts that potentially have a direct impact on Kamloops residents, including:

• increasing the Additional School Tax rates from 0.2% to 0.3% for property values between $3 million and $4 million and from 0.4% to 0.6% for property values above $4 million, effective for the 2027 tax year
• increasing the Speculation and Vacancy Tax rate for foreign owners and untaxed worldwide earners to 4% for the 2027 tax year, up from the current 3%
• implementing changes in 2027 to reduce the Home Owner’s Grant by $200 for the basic deduction, from $770 to $570
• changing the interest rate structure for the Property Tax Deferment Program from simple to compound and adopting a prime plus 2% rate for new loans.

View the full memo.
View the presentation within the Council meeting slide deck.
Contact for further information:
David Hallinan | 250-828-3811

View the full Council Highlights for this meeting