Ferry Terminal Property Taxation

Ministry of Small Business and Revenue No legislative changes were required to deal with assessment issues related to the British Columbia Ferry Services BCFS. BCFS was formed in 2004 as an independent authority and BCFS facilities must now be assessed and are subject to property taxes on most of their properties including the marine facilities docks, terminals and maintenance depots. BC Ferry Services challenged the valuation of their properties and filed appeals to the Property Assessment Appeal Board for their 2004 and 2005 assessments, taking an initial position that restrictions in their leases with the Government of British Columbia Government make the properties valueless. BCFS and BC Assessment BCA agreed to settle the appeals, resulting in reductions to the value of the marine facilities of about 42 for 2004 and 48 for 2005. The municipalities of West Vancouver, Port Hardy, North Saanich and Prince Rupert were interveners in the appeals, but did not challenge the agreement to settle. The Municipality of Delta separately appealed the BCFS assessments for 2006 to the Property Assessment Review Panel but was unsuccessful and did not pursue the appeal further. BCFS will be paying about 5 million in annual property taxes. Previously when BC Ferries was a Crown Corporation, the Government paid grants in lieu of about 2 million to municipalities in which the ferry facilities were located. If any need for legislative amendment is identified in the future, affected parties and the UBCM will be consulted as is the usual practice in developing new policies.