WHEREAS the Port Improvements Berth Corridor Tax Exemption Regulation, BC Reg. 1982004 exempts berth corridor improvements including breakwaters, crane rails on wharves or piers, docks including caissons and rock mattresses, dolphins floats, jetties, piers, wharves, and specified piles from property taxation in specified circumstances; AND WHEREAS this berth corridor taxation exemption interferes with the ability of: a local governments with ports to access adequate financial resources to support community needs, contrary to Section 12s of the Community Charter; and b local governments to determine the appropriate level of local government taxation, contrary to Section 12d of the Community Charter: THEREFORE BE IT RESOLVED that the provincial government repeal the Port Improvements Berth Corridor Tax Exemption Regulation in the fall of 2014.
Ministry of Community, Sport Cultural Development Privately-owned facilities, docks, wharves and berths are included in the taxable assessed value and full municipal taxes are paid. Berth corridors are the docking portion of break bulk and container terminals at port facilities. Port Authorities administer property owned by the Government of Canada. Port Authorities typically do not lease the berth corridors to the terminal operators; instead, they allow the operators to use the berth corridors through an operating agreement. Historically, because of these operating agreements, berth corridors were exempt from property taxation. Until the early 2000s, all federally-owned port lands, including berth corridors, were exempt from taxation and were excluded from calculation of Grants in Lieu of Taxes by the Federal Payments in Lieu of Taxes Act. Municipalities did not realize property tax revenue from these properties. In 2002, the British Columbia Assessment Authority BCA began interpreting these arrangements as taxable occupation and began assessing the berth corridors at break bulk and container facilities and placing them on the assessment roll as taxable property. 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. Legislation introduced by the Province also made changes to exempt from taxation berth corridors owned by the Government of Canada but taxably occupied. 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. Thats why transportation is singled out for special focus in the BC Jobs Plan. More than any other sector, it serves the dual purpose of generating direct employment and underpinning job creation, development and progress throughout BC. It is in the provincial interest to maintain the competitive nature of container ports and this exemption is consistent with treatment of similar infrastructure in the United States and Eastern Canada. The Province is not considering repealing the Port Improvements Berth Corridor Tax Exemption at this time.