Proposed legislation from the B.C. Conservatives would raise taxation rate caps for municipalities, which are bracing for a potentially major financial hit from upcoming assessment changes.
Kamloops Centre MLA and finance critic Peter Milobar introduced the private member’s bill Thursday.
He said it comes in response to concerns from municipalities over proposed changes to how pipeline properties are valued.
Many say they could lose hundreds of thousands in tax revenue — losses that would likely have to be passed on to residential property owners.
A new model from B.C. Assessment would reduce the assessed value of pipelines in the province, lowering the taxes pipeline corporations pay.
Chris Whyte, B.C. Assessment’s manager of specialized costs spoke at a board meeting of the Thompson-Nicola Regional District (TNDR) on Oct. 23. He said the process to redevelop the cost model used to evaluate pipelines began in 2016, after calls from the industry.
In a letter to Finance Minister Brenda Bailey, the TNDR board said the changes could increase residential property taxes by as much as 25 per cent in some areas.
It expressed concerns about the short notice given for the changes and their impact on residential property owners, particularly in areas with smaller populations.
The board said it only found out about the proposed valuation changes in mid-September.
Bailey is expected to review the changes for approval in November, with the B.C. Assessment board due to give final approval in December.
“Consultation with impacted local governments has been severely lacking,” the board says.
Mike Veenbaas, director of financial services for the District of Kent, called the changes “shocking.”
In an email to Conservative MLA Tony Luck, which was shared with media outlets, Veenbaas said the changes represent a loss of about $380,000 in property tax revenue.
“Municipalities cannot run deficits in BC,” explains Luck in a statement. “Every rural and urban community that has pipelines will be forced to replace lost revenue by raising taxes elsewhere.”
The Conservatives are calling for a pause on any assessment changes until communities are consulted.
Otherwise, they said their bill would update existing rules on rate caps and allow municipalities to accommodate revenue changes.
The current taxation rate cap for most jurisdictions is $40 for every $1000 of a property’s assessed value. The Conservative bill would raise that rate to $44.615.
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