538/2004

O.C. 1173/2004

December 3, 2004

Ports Property Tax Act

Ports Property Tax New Investment Regulation

[includes amendments up to B.C. Reg. 215/2014, November 24, 2014]

538_2004_pit

Interpretation

In this regulation:

Act means the Ports Property Tax

Act ;

assessed value of improvements means the value calculated in

accordance with the following formula:

A − UF − I + D + UFD + ID − AD

where

A = the assessed value of taxable Class 4 improvements under the Assessment Act on the revised assessment roll of a

taxation year, subject to any final determination;

UF = the portion of A determined by applying, in accordance with the MIPM,

the update factor for that taxation year;

I = the portion of A determined by applying, in accordance with the MIPM,

the interest factor for that taxation year;

D = the amount of depreciation deducted in accordance with the MIPM to

arrive at the value of A;

UFD = a value determined by applying, in accordance with the MIPM, the

update factor for the first year of designation to the value of A - UF - I +

D ;

ID = a value determined by applying, in accordance with the MIPM, the

interest factor for the first year of designation to the value of

A - UF - I + D + UFD ;

AD = an amount of depreciation calculated in accordance with the MIPM with

respect to the value of A - UF - I + D + UFD + ID ;

baseline value means the assessed value of improvements in

the first year of designation;

Class 4 improvement means property that is both

Class 4 property, and

an industrial improvement;

current taxation year means the taxation year for which the value of new investment in improvements is determined under

section 3;

final determination means any change in assessment that is

finally determined under the Assessment Act by a supplementary

assessment roll or on further appeal;

first year of designation , in relation to property that is

designated by an assessment roll number for the purposes of

section 4 [property tax rate cap on new investment in port facilities] of the

Act, means the first year in which any property identified by that assessment roll number

was designated for the purposes of

section 4 of the Act;

industrial improvement has the same meaning as in

section 20 (1) of the

Assessment Act ;

interest factor means the factor used to calculate interest

during construction in the MIPM;

MIPM means the Major Industrial Properties Manual established

or adopted under

section

20 (5) of the Assessment Act ;

revised assessment roll has the same meaning as in

section 1 of the

Assessment Act ;

update factor means the cost update factor in the

MIPM.

[am. B.C. Regs. 83/2007; 248/2008; 308/2010; 215/2014, s. 1.]

Property tax rate cap on new investment in port

facilities

New investment in improvements on property described in sections 4 (1) (

a) and (

b) of the Act is subject to the maximum municipal tax rate set out in

section 4 (1) of the Act for the period set out in

section 4 (4) of the Act, if the assessed value of the improvements is included in an assessment roll for the 2005 or a subsequent taxation year.

[am. B.C. Reg. 215/2014, s. 2.]

New investment in improvements

Subject to this section, for the purposes of

section 4 of the Act, the value of new investment in improvements, for the 2005 or a subsequent taxation year, is the sum of the amounts determined by completing the calculation set out in subsection (2) for

the current taxation year, and

the taxation year following the first year of designation and each of the

subsequent taxation years within the period up to the current taxation year.

The amounts for the purposes of subsection (1) for the 2005 or a subsequent taxation year are to be determined in accordance with the following calculation:

( AVI − AVIP ) − ( B − AVIP )

where

AVI = the assessed value of improvements for that year;

AVIP = the assessed value of improvements for the previous year;

B = the baseline value.

In determining an amount under subsection (2), if (B − AVIP) yields a

negative number, the value to be used for (B − AVIP) is nil.

If an amount determined under subsection (2) is a negative number, the amount for the

purposes of the calculation is nil.

An amount determined under subsection (2) is to be adjusted for the incremental

change in the update factor and for depreciation by multiplying that amount by the

following:

[( CU/DU ) (1 − 0.05 Y )]

where

CU = the current update factor;

DU = the update factor in the first year of designation;

Y = the number of years by which the taxation year for which the amount is

being determined under subsection (1) (

a) or (

b) precedes the current taxation

year.

Repealed. [B.C. Reg. 215/2014, s. 3 (b).]

If the value of new investment in improvements on property for any taxation year,

determined in accordance with this section, exceeds the assessed value of taxable Class 4

improvements on the property for that year, the value of new investment in improvements

for the purposes of

section 4 of the Act for that year is the assessed value of taxable Class 4

improvements.

[am. B.C. Regs. 248/2008; 308/2010, s. 2; 215/2014, s. 3.]

[Provisions relevant to the enactment of this regulation: Ports

Property Tax Act , S.B.C. 2004, c. 7,

section 4]