WHEREAS Section 193h of the Assessment Act permits the assessor, in determining the value of property, to consider other circumstances affecting the value of the land and improvements, including the physical condition of property and the extent to which it is contaminated; AND WHEREAS the UBCM membership has consistently endorsed resolutions most recently 2005-B21 and 2011-B37 pointing out that causing or allowing contamination can result in the substantial reduction in assessed value of an industrial property, thereby decreasing the property owners tax burden while creating inequality among industrial taxpayers and reducing the tax revenue available to local governments: THEREFORE BE IT RESOLVED that the Province of British Columbia amend the Assessment Act to require the assessor, when determining the value of property for an assessment roll, to disregard evidence of existing contamination caused or contributed to by industrial processes carried out by the owner on the property, or on an adjacent or associated industrial property under the same ownership; AND BE IT FURTHER RESOLVED that this requirement would apply to a property regardless of whether the property contained a business operation.
Ministry of Community, Sport Cultural Development 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. In general, the market values of the properties will increase as remediation progresses. Once remediation is complete to the extent required for its intended use, the market value will reflect the value of a fully remediated property for its proposed use. The assessment for a property is not typically changed to reflect contamination until a site is registered as a contaminated site. However, the market may reflect some stigma effect for properties where contamination may be suspected e.g., gas stations. In summary, not taking into consideration remediation costs when valuing properties would be inconsistent with the legislative framework Assessment Act that requires properties be valued according to their fair market value.