Abbotsford, Mission and Chilliwack are among the worst offenders when it comes to taxing business over residential properties, according to a tax rate study conducted by the Canadian Federation of Independent Business.

Of the three, the District of Mission charges its businesses 3.5 times more than it charges residential property owners, making it the 34th worst municipality out of 160 in B.C. in its business to residential tax ratio.

For instance, on an average Mission property (valued at $396,887) a resident pays $2,669, while a business would pay $9,062.

The story is almost as dramatic in Abbotsford. An average Abbotsford property ($386,263) is taxed $2,778, while a business is taxed $8,123 - or 2.9 times more.

This puts Abbotsford in the top 30 worst offenders by population and the 77th worst municipality for its business to residential tax ratio.

Chilliwack is also in the top 30 worst offenders by population, and the 100th worst municipality in the CFIB's eyes. There, the owner of an average Chilliwack property ($334,442) pays $2,394, while a business pays $6,233 in property tax - or 2.6 times more.

"These extreme property tax rates are a job killer in our communities," said Brian Bonney, the director of affairs in B.C. for the CFIB.

"These taxes will not only affect jobs, but how small business gives back to your community."

Municipal taxes are "profit-insensitive," he said, meaning they impose a fixed tax bill on a business no matter what the business earns, unlike provincial and federal taxes, which are dependent on the business's income.

In addition to continually rising municipal taxes, the tax gap between residential and business continues to grow, said Bonney. The average business/residential tax ratio in B.C. was 1.8 in 1990.

Ten years later, the average gap is 3.3 to one among B.C.'s 30 largest municipalities, the CFIB tax rate study found.

In Mission the rate crept up to 3.51 last year, from 2.6 in 2003. Abbotsford's ratio has held steady at 2.9 for the past two years.

"Municipalities are putting the heaviest burden on small business," and risk smothering the small businesses that form the foundation of their economies, said Bonney.

"We're no longer in the position to be a cash cow for them. They're harming small business."

To reverse the trend, CFIB recommends municipalities freeze their business property tax ratios and slowly decrease the gaps over several years, until the tax gap hits a more acceptable 2 to 1 ratio. That rate was supported by a majority of businesses the CFIB surveyed.

The adjustment would ideally be made over several years, from 12 to 15 years, to allow the residential populations grow and absorb the tax burden, he said.

"Do whatever it would take to not raise taxes on the residential side," he said.

If municipalities don't make significant progress toward this end by 2012, the CFIB wants the provincial government to step in and legislate a cap on municipal business property taxes, as they did for railway and port properties.

"Introducing a fair cap to business municipal property tax rates has been done in Ontario, and it can be done in B.C.," said Bonney. Toronto has committed to a 2.5 to 1 ratio in 2013, and Saskatoon cut their tax gap to 1.75 to 1 this year.

Also, municipalities have to stop increasing their budgets arbitrarily, said Bonney.

"Boosting tax rates by four per cent instead of seven per cent is not cutting back, it's still a tax increase," he said.

Municipalities tend to look at their last budget, assume they'll have to spend that much again in the coming year, and add what items they can afford on top of that. The CFIB suggests municipalities conduct value for money audits, taking one department each year.

Finally, Bonney said municipalities have to exercise "tough love" and insist the province take back responsibility over matters such as social housing and the environment.

"That is not [the cities' role]. The municipalities' role is to ensure the sewers are flowing, the roads are paved, and there are police and firemen," he said.

Bonney has talked to up 60 mayors out of the B.C.'s 160 municipalities, and he's getting their attention. He hopes the mayors will take the CFIB's suggestions to the upcoming Union of B.C. Municipalities to be adopted as a strategy to take to the provincial government.