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Volume 47, No. 25

B.C. Reg. 538/2004

The British Columbia Gazette,

Part II

December 14, 2004

B.C. Reg. 538/2004, deposited December 3, 2004, pursuant

to the PORTS PROPERTY TAX ACT [Section 4]. Order in Council

1173/2004, approved and ordered December 2, 2004.

On the recommendation of the undersigned, the Lieutenant Governor,

by and with the advice and consent of the Executive Council, orders that the

attached Ports Property Tax New Investment Regulation is made.

— G. COLLINS,

Minister of Finance; S. BOND, Presiding Member of the Executive

Council.

PORTS PROPERTY TAX

NEW INVESTMENT REGULATION

Interpretation

1 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

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;

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

the update factor for that taxation year;

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

the interest factor for that taxation year;

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 year of designation to the value of

A UF I + D ;

a value determined by applying, in accordance with the MIPM, the interest

factor for the year of designation to the value of

A UF I + D + UFD ;

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 year of designation;

"Class 4 improvement" means property that is both

(

a) Class 4 property, and

(

b) an industrial improvement;

"current taxation year" means the taxation year

within the period 2005 through 2009 for which the value of new investment in

improvements is determined under

section 2;

"final determination" means any change in assessment

that is finally determined under the Assessment Act by a supplementary

assessment roll or on further appeal;

"industrial improvement" has the same meaning as

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;

"year of designation" means

(

a) the calendar year during which property is designated

for the purposes of

section 4 of the Act, or

(

b) if the property is designated after October 31 but before the end of December 31 of the same calendar year, the following calendar year.

Property tax rate cap on new investment in port facilities

2 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

section 4 (4) of the Act, if the assessed value of the improvements

is included in an assessment roll during the period set out in

section 4 (2)

of the Act.

New investment in improvements

(1) Subject to this section, for the purposes

section 4 of the Act, the value of new investment in improvements, for any

of the 2005 through 2009 taxation years, is the sum of the amounts determined

by completing the calculation set out in subsection (2) for

(

a) the current taxation year, and

(

b) the taxation year following the year of designation and each of the subsequent taxation years within the period up to the current taxation year.

(2) The amounts for the purposes of subsection (1) for

any of the 2005 through 2009 taxation years 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;

the baseline value.

(3) In determining an amount under subsection (2), if

( B AVIP ) yields a negative number, the value to be used for ( B

AVIP ) is nil.

(4) If an amount determined under subsection (2) is a

negative number, the amount for the purposes of the calculation is nil.

(5) 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

the current update factor;

the update factor in the year of designation;

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.

(6) For a taxation year within the period set out in

section

4 (4) of the Act, but after the 2009 taxation year, the value of new investment

in improvements on property is the sum of the amounts

(

a) determined under subsection (2) for each of the years

within the period referred to in subsection (1) that the property was designated, and

(

b) adjusted in accordance with subsection (5) for each

year within the period referred to in

section 4 (4) of the Act.

(7) 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

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

Class 4 improvements.

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© 2004: Queen's Printer, Victoria, British Columbia, Canada