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ECONOMIC STRUCTURE

• Industry Sectors
• Major Employers
• Major Projects
• Labour Force
• Self Employment
• Labour Standards
• Taxes

Industry Sectors

The industrial base of the North Okanagan is well diversified and like many other regions in Canada, it is growing in the area of services. Traditionally, the economy of the North Okanagan has been dependant on forestry and agriculture for growth and expansion. However, over the past ten years, there has been considerable growth in manufacturing and service economies. The globalization of the economy, easy export access and advanced technology have not only allowed new business to move to the region and still be competitive, but have attracted service professionals, national retailers, and advanced technology manufacturers.

Source: BC Stats Regional District Demographic Profile, 2001 Census

The North Okanagan business community is characterized by a large percentage of small- and medium-sized enterprises. Ninety-one percent of all businesses in the region have less than twenty employees and those considered large businesses (200+ employees) constitute less than 0.5%. The economy is very diverse and no longer relies on one or two industries.

The increase in the service industries in this region can be attributed to the ease of transportability (expansion of services at the airports, and new highway to Vancouver), the availability of technology (Internet and computerization), and the desire by professionals to enjoy the North Okanagan lifestyle while at the same time growing their businesses.

Click here to see more information on the number of businesses in the North Okanagan.

Source : Ministry of Finance, BC Government, 2004

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Major Employers

The following is a list of the major companies in the North Okanagan who have more than 50 employees. A full database of the businesses located in the North Okanagan is available to access and query on the home page.

Click here to see a listing of companies with more than 50 employees.

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Major Projects

The North Okanagan has major projects in various stages of progress. (Source: BC Major Projects Inventory):

Middleton Mountain Neighbourhood: This project on the upper Kosmino lands will include single- and multi-family homes.  Rezoning was approved June 204.  Preliminary layout approval was given for 129 single-family and 10 multi-family dwelling lots.

Status: Proposed
Start: Spring 2005
Estimated cost: $15 million
Finish: 2008

Okanagan Hills Resort:  A major golf course with resort and residential accommodation is proposed.  The neighbourhood plan and rezoning bylaw have been accepted by council.  Located above Bella Vista, the resort consistes of 735 acres and will include a championship  18 hole golf course development, similar to Predator Ridge, a commercial winery, a 150 –room hotel, 600 Tourist Residential Units and 640 Resort Residentail units.  

Status: Proposed
Start: Spring 2005
Estimated cost: $25 million
Finish: 2009

Kristall Resort and Spa:  A 150-room hotel, 20,000 sq. ft. wellness spa and conference centre to be developed in two phases is integrated with the summit and existing reservoir.  Also included is 4,500 sq. ft. of commercial space.  Zoning has been approved, site preparation and servicing began in Fall 2003 and is currently underway. 

Status: Proposed
Start: Spring 2005
Estimated cost: $65 million
Finish: Summer 2006

Silver Star Ski Resort Expansion: An upgrade planned for Silver Star Mountain Resort including new lifts and updates to the village infrastructure was completed in time for the 2002 – 2003 season.

The Comet Six Pack Express replaces the popular Vance Creek Quad Chairlift; reducing trip time to less than 6 minutes and increasing passengers to 3,000 per hour. The $5.2 million state of the art Leitner-Poma “Comet Express” will be the longest of its kind in Canada servicing Silver Star’s pristine intermediate terrain.

The Putnam Creek Express Quad Chairlift will be replaced with a new $4.8 million high speed Leitner-Poma Express Quad Chairlift. This will significantly improve the uphill capacity (2,000 passengers / hour) to Silver Star’s award winning Putnam Creek alpine trail system, world-famous for its deep powder snow and winch-groomed black diamond runs.

Predator Ridge Golf Resort Development: New resort community near Vernon which includes an expansion to the existing golf course (completed 27 holes) 41 golf cottages, an executive suite hotel, spa and wellness centre, a town center, and 2,120 housing units to be developed over 15 years. Construction is on 400 acres of a 1,200-acre site. Phase 1 of a 237-unit single- and multi-family subdivision and 41 golf cottages is under construction. Website: www.predatorridge.com.


Status: Construction process
Start: Summer 1999
Estimated cost: $500 million
Finish: 2014

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Labour Force

The labour force of the North Okanagan has many characteristics which can be found in full detail at BC Stats and Canada Census. Generally, the labour force consists of individuals 15 years and older who are employed, or unemployed and actively seeking employment. In the first quarter of 2004 the unemployment rate was 8%. The North Okanagan is a tourist destination region and therefore there are moderate employment fluctuations during the different tourist seasons. This is reflected in the percentage of full-time/full-year workers in the region.

Participation Rates (2001)

Source: BC Stats, 2001 Census

Percentage of Full-time, Full-year Workers

Source: BC Stats, 2001 Census

In the past the North Okanagan relied heavily on primary industries for its economic development growth. To this day, forestry and agriculture continue to be important industry sectors for the region. However, over the past five years the North Okanagan has encouraged the diversification of its economy, resulting in a significant increase in service industries in the area. Service industries have relocated or emerged due to:

• availability of highly skilled workers
• advanced education/training facilities
• attraction and retention of professionals through quality of life opportunities
• ease of accessing export markets
• high quality/quantity of technical infrastructure
• the portability of the service industry

Census 2001
Source: Statistics Canada

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Self Employment

Self-employment rates in the North Okanagan are above the BC average as many individuals take advantage of the entrepreneurial spirit of the community and the support resources available for small business. Much of the entrepreneurial development has occurred in the service sector, particularly in emerging industries in the high technology and tourism sectors. The location of the North Okanagan and the quality of life associated with the region often attract professionals to start up their profession and/or move their practices from other locations. Engineers, doctors, business consultants, accountants, architects, software producers, and many other professional service enterprises have moved to the area and are successfully providing services in the local community or are exporting their services domestically and internationally.

Percentage of Self Employed

Source: BC Stats, 2001

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Labour Standards

Last updated January 2005.

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Federal and Provincial Taxes

Corporate Taxes:
Business taxes in Canada are levied by federal, provincial and municipal levels of government and are similar to the basic forms of taxation in the United States. For a listing of municipal business property rates for the North Okanagan communities, please refer to the Real Estate section of this website.

The corporate tax environment in the province of British Columbia can be very favourable, especially for manufacturing, processing and research-intensive firms

Federal Tax:
The Canadian combined federal - provincial general corporate income tax rate averages 43 percent. The Canadian and British Columbian governments recognize the vital role of small- and medium-sized enterprises (SMEs) in the economy, and many federal tax incentives work to foster an environment in which SMEs can create goods, generate wealth and reach full potential for growth. Tax incentives provide the opportunity for small- and medium-sized businesses in Canada to prosper. Incentives include:

• a lower corporate income tax rate
• special deductions for small business
• capital gains taxation exemptions
• scientific research and experimental development tax credit
• film tax credits

As well, Revenue Canada has recognized the need to make Canada a more competitive place for doing business and has taken steps to make the administration of taxes more efficient and provide a secure, paperless way to file returns.

Specific information about these federal tax incentives can be found at Strategis. More detailed information about federal tax credits can be found at Revenue Canada.

Provincial Tax:
Provincial corporate income tax rates in BC are expressed as a percentage of taxable income earned in the province. Small Canadian-owned businesses benefit from a preferred federal-provincial tax rate ranging from 18 to 21 percent, depending on the business payroll.

The province of BC also offers tax credits and incentives for investment. Tax credits available in BC include:

• International Finance Business (Tax Refund) Act
• BC Scientific Research & Experimental Development Tax Credit
• Film & Television Tax Credit
• Corporate Income Tax Venture Capital Tax Credit
• Production Services Tax Credit

More specific information regarding corporate provincial taxes and tax credits can be found at the BC Ministry of Finance and Corporate Relations.

Provincial Social Service (retail sales) Tax:

Provincial sales tax in British Columbia is 7%.

The Consumer Taxation Branch registers businesses that collect tax on behalf of the province; conducts field audits and inspections of these businesses' tax collection records; and carries out office audits and compliance programs.

Businesses must register with the Consumer Taxation Branch and collect social service tax (retail sales tax) on their taxable sales and leases, if they engage in any of the following activities:

• selling goods at retail;
• leasing goods as a lessor;
• providing legal services;
• selling parking rights within the Vancouver Regional Transit Service Area;
• providing taxable services (e.g. repairs to goods);
• providing telecommunication services.

The Consumer Taxation Branch will issue you a Certificate of Registration and provide information on your responsibilities.

Goods and Services Tax:

Revenue Canada Excise/GST is responsible for administering the Excise Tax Act - Goods and Services Tax and the Excise Act - Excise Tax and Duties.

You must register for the GST if you are a person, business or organization operating in Canada with worldwide annual revenues from taxable supplies of goods and services over $30,000.00, or if you are a taxi or limousine operator. If your annual GST-taxable sales and revenues are under $30,000, you are not required to register, but may register voluntarily as long as you are carrying on a commercial activity. When you register for the GST, you will be assigned a Business Number (BN).

You must be licensed for Excise Tax if you are manufacturing goods subject to Excise Tax and your sales exceed $50,000.00 in a calendar year. Some examples of goods subject to Excise Tax are clocks, watches, jewelry, gasoline and tobacco.

If you are involved in the production of alcohol or tobacco, you should contact the Excise Duty Unit of Revenue Canada Excise/GST at (604) 666-0893.

Personal Taxes:
The Basic Income Tax Rate in British Columbia is expressed as a percentage of personal income tax rates determined under the Income Tax Act of Canada. In addition to the basic rate, the province charges high-income taxpayers a surtax. Information on the rates and provincial surtax can be found at BC Ministry of Finance & Corporate Relations

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