WHEREAS the provincial government has indicated that it is considering, as part of a liquefied natural gas LNG regime for the Province of BC, capping increases of property tax rates for LNG-related industrial properties; AND WHEREAS the UBCM, with the support of the provincial government, has long held to the following principles, most recently affirmed in the member-endorsed 2008 policy paper, Financing Local Government: Achieving Fiscal Balance: - The ultimate determination of the local public interest in terms of local responsibilities lies with locally elected representatives; including the freedom to determine the level of local services, expenditures and taxation; - Local government should have the necessary legislative powers to meet its responsibilities, the power to ensure its policies and financial programs are mutually supporting, and the discretion and flexibility to determine the most appropriate methods of meeting the local needs; and - Property taxation distribution must be the responsibility of local government; it should be based on actual value assessment and grants in lieu of taxes paid by other governments and their agencies should be paid on the same basis as the ordinary taxpayer: THEREFORE BE IT RESOLVED that UBCM urge the provincial government to refrain from considering or implementing a cap on local governments ability to set property tax rates for industrial properties related to the liquefied natural gas industry.
Ministry of Community, Sport Cultural Development The Province remains committed to local government tax autonomy. However, this autonomy must be set within the broader context of economic development for the benefit of all British Columbians. Thus, on several previous occasions, the Province has legally limited municipal tax autonomy by statute e.g., Ports Property Tax Act, regulation e.g., Taxation Rate Cap for Class 2 Utility Property Regulation, and letters patent. The Province is concerned with a competitive tax regime for LNG facilities in BC. It also recognizes that municipalities play an important role in realizing the LNG opportunity. The Province is encouraging discussion between proponent and local governments to arrive at agreement on competitive and fair financial arrangements, including property taxation.