The Union of British Columbia Municipalities (UBCM) is discussing the effects of government’s new Payroll Tax.

To make up for the loss of revenue from medical services premiums (MSP) the government of B.C. plans to implement a new tax call the Employers Health Tax.

The tax is one that Smithers Mayor Taylor Bachrach says “is going to hit municipalities hard.”

The Employers Health Tax is expected to take effect at the beginning of 2019 a full year before B.C. plans to eliminate the MSP premium in 2020.

Bachrach says that transition year where municipalities pay for both is “going to have property tax implications all across BC.”

The Transition year will also affect businesses that already pay MSP for their employees.

Bachrack says “although people have not voted on the resolution yet at this point it is fairly clear most municipalities are concerned about that.”

Voting on the UBCM resolutions will not start until later today.

If it goes through UBCM will request that the province hold off on implementing the new proposed Payroll Tax until January 1, 2020.