Brownfield Taxation

Year
2020
Number
EB46
Sponsor(s)
Vanderhoof

Whereas brownfields littered in prime locations create loss of economic value in affected communities and draw unattractive attention to visitors and prospective investors; And whereas brownfields owners settle with paying the cheap cost of annual property taxes rather than remediation of the property for the economic development and revitalization of the community: Therefore it be resolved that UBCM lobby the Province of BC to empower local governments by amending the BC Assessment Act to tax brownfields in a separate property class in order to encourage revitalization of brownfields for the economic benefits and commercial development of the community.

Provincial Response

Ministry of Finance The issue of contaminated sitesbrownfields is a province-wide concern, for both rural and urban communities, and one that the Province takes seriously. The cost of remediation for these properties is often prohibitive and can even exceed the market value of the property. As a result, increasing the rate of taxation andor creating a new property class for these properties may have unintended consequences and challenges from the outset such that the property could remain unprofitable and unused which likely is not the outcome communities are needing. The Ministry believes a separate property class for brownfield sites may not be the best solution. BC Assessment is required to assess properties at their market value. Valuing contaminated sites at their market value takes into account the current state of the property, as well as the remediation required to achieve the intended use of the site and the time frame for any redevelopment. The assessed value must reflect the likely cost of remediation and the time frame required for that remediation, as the market will take those factors into consideration in determining market value. A separate property class and tax rates therefore would likely not result in the financial incentive suggested. Ministry staff will continue to consider this issue and work with UBCM staff on options including those from an environmentalclimate lens.

Convention Decision
Endorsed