Sunshine tax

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Used primarily within the Kelowna region but also within the Okanagan Valley as a whole, the term “Sunshine Tax” euphemistically refers to the dramatically lower wage - compared to other similar metropolitan regions - that a resident would be willing to suffer for the pleasure of living in the area.

As a generic example of the Sunshine Tax, it would not be unusual for someone moving to Kelowna to find the same job with the same responsibilities and job pressures to garner a wage of only 60% to 85% of what they would have received for the same job in their previous community. The main exceptions would be for jobs that have very specific and difficult-to-find requirements, and which would usually garner high wages to begin with.

The term “Sunshine Tax” has also been used in a similar fashion for employment conditions in and around San Diego, California; although to a lesser extent in both prevalence as well as history.

[edit] History

Historically, this term has been used in the Okanagan since the 1950’s, but has only come into common use by the 1980’s. Frequent usage can be seen in the local newspapers and other publications starting at around this time.

[edit] Current Status

As of 2006, however, the Sunshine Tax can be considered to have died. A combination of the Canadian Housing Bubble (which, as of December 2007, has pushed the price of the average Kelowna house beyond half a million dollars), combined with rapidly rising rents (caused by the housing bubble and a shortage of rental units) has made living in or near the city unaffordable to most people working at or near minimum wage.

A number of studies done in the Kelowna area (as of December 2007) have estimated the “New Okanagan Minimum Wage” to be around $15/hr (also published in Okanagan Life Magazine, 2007). This is based on average rents and the general cost of living for a single unattached individual with no dependents, and represents the minimum that employers should pay employees to ensure that they remain well-motivated and dedicated.

Unfortunately, the majority of service-level jobs are still well beneath this level, with few exceeding $11/hr. As such, many businesses are currently experiencing a major employee shortage, as few people (aside from those whose needs are subsidized, such as teenagers living at home) are able to accept these low wages.