WHEREAS in 2004 the provincial government introduced temporary municipal tax rate restrictions caps until 2018 on ports under the Ports Property Tax Act in order to make BC ports more attractive to Canadian and international investors; AND WHEREAS these port property tax rate caps were made permanent in 2014; AND WHEREAS the provincial government does not compensate local governments with ports for the full loss of property tax revenue resulting from these port property tax rate caps; AND WHEREAS these provincially imposed port property tax caps therefore interfere with the ability of: i. local governments with ports to access adequate financial resources to support community needs, contrary to Section 12a of the Community Charter; and ii. local governments to determine the appropriate level of municipal taxation, contrary to Section 12d of the Community Charter: THEREFORE BE IT RESOLVED that the provincial government eliminate port property tax rate caps by repealing the applicable provisions of the Ports Property Tax Act in the fall of 2014.
Ministry of Finance The Ports Property Tax Act PPTA was created in 2004 in response to concerns from marine terminal operators that rising and uncertain municipal taxes on industrial land were impeding investments and putting BC port terminals at a competitive disadvantage. The temporary provisions of the PPTA were extended in 2007 and made permanent in Budget 2014. Studies show significant new investments in this critical industry. The PPTA provides a cap on municipal tax rates for existing marine port facilities of 27.51000 and a lower cap on new port investments or improvements of 22.51000. Compensation is provided to host communities based on assessments and tax rates that prevailed when the program was introduced. That compensation is embedded in the PPTA and amounts are increased annually by inflation. Further, new investments result in new tax revenues for host municipalities. The Province is naturally very reluctant to impinge on municipal tax freedom. However, BC is Canadas Pacific Gateway and transportation is a key support for economic growth and development. It serves the dual purpose of generating direct employment and underpinning job creation and development throughout BC. The Province has made the PPTA permanent and is not considering repealing the tax rate caps.