Whereas vacant lands detract from the vibrancy of communities; And whereas vacant lands contribute less property tax and utility billing revenues, no employment or other value to their community: Therefore be it resolved that UBCM advocate on behalf of all local governments for an amendment to the Prescribed Classes of Property Regulation 43881 to include prescribed classes for vacant land and vacant contaminated land that allows for a higher tax rate andor flat taxes.
Ministry of Community, Sport and Cultural Development The prescribed classes of property for the BC assessment and tax system are based on the distinct use and assessment methodology applied to properties in each class e.g. residential, business, industrial, utilities, and farmland. Vacant property does not yet have a distinct use, and by default is assigned to Class 6 Business and Other until the potential use of the property can be refined through the municipal planning and zoning process. It is important to remember that Class 6 Business and Other properties are taxed at a higher rate than Class 1 Residential properties. Also, vacant land is assessed based on its highest and best potential use. Thus, there is significant tax already levied on vacant land. To create a vacant class for the specific intent of levying a higher rate of taxation would be inequitable because the municipality would be using the assessment and tax system to essentially levy a vacancy penalty. The Province is not prepared to do that. Instead, the Province recommends that municipalities consider incentives to expedite development, such as the revitalization tax exemption in section 226 of the Community Charter.