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2004 Legislative Session: 5th Session, 37th Parliament

FIRST READING

The following electronic version is for

informational purposes only.

The printed version remains the official version.

HONOURABLE GARY COLLINS

MINISTER OF FINANCE

BILL 8 – 2004

PORTS PROPERTY TAX ACT

Contents

Section

Definitions

Designated port facilities

Property tax rate cap on designated port facilities

Property tax rate cap on new investment in port facilities

Compensation to local governments

6-7

Transitional Provisions

8-9

Consequential and Other Amendments

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Definitions

1 In this Act:

"assessment roll number" means the alphanumeric identifier described as an assessment roll number on an assessment roll under the Assessment Act and used to identify a particular property;

"Class 4 property" means property that is assessed as property in the Class 4 property class under the Assessment Act ;

"designated" means designated under

section 2;

"eligible port property" means land identified by a specific assessment roll number, and the improvements on that land, if the following apply to the property:

(

a) the property

(

i) is located next to a navigable waterway, and

(ii) is assessed, in whole or in part, as Class 4 property;

(

b) the property

(

i) includes one or more improvements that are assessed

as referred to in paragraph (a) (ii) by reason of being industrial improvements

within the meaning of paragraph (q) [sea going cargo loading and storage]

of the definition of "industrial improvement" in

section 20 (1) of the Assessment

Act , or

(ii) is used or held primarily in association with property that is otherwise eligible port property;

(

c) the property, when considered as a whole, is not primarily used or held for the purpose of the transport of crude oil or petroleum fuel products or both, or for purposes that are ancillary to this transport;

(

d) the improvements referred to in paragraph (b) (

i) are not primarily used or held for the purpose of the transport of products from an industrial production or processing facility that is part of the property or is near that property, or for purposes that are ancillary to this transport;

"municipal property value taxes" means,

(

a) in the case of a municipality other than the City

of Vancouver, property value taxes for which rates are established under

section

197 (1) (a) [municipal property value taxes] of the Community Charter ;

(

b) in the case of the City of Vancouver, property value

taxes imposed under

section 373 [rating by-law] ,

section 459 [business

improvement area levies] or

Part XXIV [Local Improvements] of the

Vancouver Charter ;

"municipal tax rate" means the tax rate imposed on property by way of municipal property value taxes.

Designated port facilities

(1) For the purposes of

section 3 or

section 4, or both, the Lieutenant Governor in Council may, by regulation, designate property that is eligible port property on the date of designation.

(2) A designation under subsection (1)

(

a) is to be by assessment roll number as at a date specified in the regulation, and

(

b) applies to the land identified by the assessment roll number and to all improvements on that land, whether the improvements were on the land at the date specified or added later.

(3) Subject to

section 6 [retroactive regulations

for 2004 taxation year] , in order to be effective under

section 3 or 4 for

a taxation year, a regulation under subsection (1) must be in force on or before

October 31 in the preceding year.

Property tax rate cap on designated

port facilities

(1) For property that is both

(

a) designated for the purposes of this section, and

(

b) Class 4 property,

the maximum municipal tax rate that may be imposed is $27.50 per $1 000 of assessed value.

(2) Subsection (1) applies only to the 2004 through 2008 taxation years.

(3) If a municipal tax rate that would otherwise apply to property subject to the restriction under subsection (1) is greater than the rate permitted by that subsection, the municipality may impose a municipal tax rate on the property that is different from the municipal tax rate imposed on other Class 4 property.

(4) For certainty, a municipal tax rate imposed under

subsection (3) does not apply for the purposes of

section 197 (4) [property

taxes for other bodies] of the Community Charter .

Property tax rate cap on new

investment in port facilities

(1) For property that is both

(

a) designated for the purposes of this section, and

(

b) Class 4 property,

the Lieutenant Governor in Council may, by regulation, provide that new investment in improvements on that property in a particular taxation year is subject to a maximum municipal tax rate of $22.50 per $1 000 of assessed value.

(2) New investment in improvements is eligible for a municipal tax rate restriction under this

section only if it is in relation to improvements whose assessed value is included in an assessment roll for one or more of the 2005 through 2009 taxation years.

(3) A regulation under subsection (1) may do any or all of the following:

(

a) limit its application to prescribed improvements or types of improvements;

(

b) establish what constitutes new investment in improvements, including by establishing a formula for determining the value of new investment in improvements;

(

c) define terms and expressions used in this section;

(

d) provide for appeals respecting determinations made under the regulations in relation to this section, including by making provisions of the Assessment Act apply;

(

e) make different provisions for different designated property and for different improvements on that property.

(4) The period during which the municipal tax rate restriction under this

section applies to new investment in improvements in a particular taxation year is 10 years, beginning the first year in which the restriction applies to that new investment in improvements.

(5) If a municipal tax rate that would otherwise apply to property subject to the restriction under subsection (1) is greater than the rate permitted by that subsection, the municipality may impose a municipal tax rate on the new investment in improvements referred to in that subsection that is different

(

a) from the municipal tax rate imposed on other Class 4 property that is subject to the municipal tax rate restriction under

section 3, and

(

b) from the municipal tax rate imposed on other Class 4 property.

(6) For certainty, a municipal tax rate imposed under

subsection (5) does not apply for the purposes of

section 197 (4) [property

taxes for other bodies] of the Community Charter .

Compensation to local governments

(1) If property in a municipality listed below is designated for the purposes of

section 3, then, for the purpose of compensating the municipality in relation to the municipal tax rate restriction under that section, the minister must pay out of the consolidated revenue fund to that municipality, in accordance with subsection (2), the amount indicated opposite the name of the municipality:

Municipality

Annual payment

The Corporation of Delta

$291 240

The Corporation of the City of North Vancouver

$1 254 813

The Corporation of the District of North Vancouver

$709 324

City of Port Moody

$494 005

City of Prince Rupert

$1 383 536

District of Squamish

$345 144

City of Vancouver

$41 616

(2) A payment under subsection (1) is to be made in the first taxation year for which the property is designated and for the subsequent taxation years in which it is designated, ending with the 2008 taxation year.

Transitional Provisions

Retroactive regulations for

2004 taxation year

(1) The Lieutenant Governor in Council may make regulations under

(

a) under

section 2 of this Act, or

(

b) under

section 223 [exemptions under regulations]

of the Community Charter in relation to eligible port property

retroactive to the extent necessary to apply for the purposes of the 2004 taxation year.

(2) A regulation may not be made under subsection (1) after December 31, 2004.

Amendment of 2004 tax rates

7 Despite the Community Charter and the Vancouver Charter , in relation to a regulation under

section 2 that applies to the 2004 taxation year, a municipality may, at any time in that taxation year, amend its municipal property value tax rates for that taxation year in order to comply with that section.

Consequential and Other Amendments

Municipalities Enabling and Validating Act (No. 3)

8 The Municipalities Enabling and Validating Act (No. 3), S.B.C. 2001, c. 44, is amended by adding the following Part:

Part 4 – 2004

Exemption regulations apply to the City of Vancouver

13 ( 1) Despite

section 2.1 of the Vancouver Charter , a regulation in force at any time

(

a) under

(

i) section 345 [exemptions for industrial or business

property] of the Local Government Act , or

(ii)

section 346 [exemptions for community ports and

airports] of the Local Government Act ,

before their repeal by the Community Charter Transitional Provisions, Consequential Amendments and Other Amendments Act, 2003 , or

(

b) under

section 223 [exemptions under regulations]

of the Community Charter ,

that would have applied, or would apply, to the City of Vancouver if

section 2.1 of the Vancouver Charter had not been or were not in force at the applicable time, is conclusively deemed to have applied and, if the regulation is still in force, to continue to apply to the City of Vancouver.

(2) This

section is retroactive to the extent necessary to give full force and effect to its provisions and must not be construed as lacking retroactive effect in relation to any matter because it makes no specific reference to that matter.

Vancouver Charter

Section 2.1 (2) of the Vancouver Charter, S.B.C. 1953, c. 55, is repealed and the following substituted:

(2) The following provisions of the Community Charter apply to the city:

section 193.1 [interest calculation] ;

section 223 [exemptions under regulations] ;

Division 3 [Dispute Resolution] of

Part 9 [Governmental

Relations] .

Explanatory Note

This Bill is intended to support British Columbia port facilities by

providing a cap on municipal tax rates applying to designated port property

and, in relation to this, providing for compensation to municipalities that

are affected by this cap,

providing a lower cap for municipal tax rates in relation to new investment

in designated port property, and

providing that exemption regulations under

section 223 of the Community

Charter apply to the City of Vancouver.

Copyright (c) 2004: Queen's Printer, Victoria, British Columbia, Canada