WHEREAS insufficient railway capacity is strangling the sale of coal and other British Columbia resources and is constraining heartland economic development while causing a dangerous and polluting diversion of heavy and hazardous commodity traffic to tax-funded roads; AND WHEREAS British Columbias unique classification of railway right-of-way as a utility results in a cumulative property taxation of 9,000 per mile, equal to ten times the rate of Alberta and three times the national average: THEREFORE BE IT RESOLVED that British Columbias provincial, regional and local governments encourage the expansion of railway infrastructure by taxing railway right-of-way as ordinary industrial property.
MINISTRY OF FINANCE The province recognizes the importance of British Columbias railway system as an integral part of our transportation network. The railways form a vital link in meeting the provinces gateway strategy that builds on our proximity to growing Asian markets. However, it is not clear that the option proposed in the resolution is the best solution. For example, changing the taxation of railway right-of-ways so that they are taxed as industrial properties may raise equity issues with other types of properties in the Utilities property class such as pipelines and electricity transmission lines. The tax burden of railways is also affected by the tax rates that the province and municipalities apply to Class 2 Utilities properties. The province is willing to discuss changes to the property taxation of railways with municipalities.