Whereas local governments within the Province of British Columbia are responsible for essential infrastructure in areas such as water, sewer and storm sewer mains as well as roads; And whereas these critical infrastructures, which were constructed years ago using a dollar which had a greater purchasing power, are subject to provincial health and safety regulations which require local governments to upgrade or replace the infrastructure despite limited funds and grant opportunities: Therefore be it resolved that UBCM request the Ministry of Finance to provide a provincial sales tax exemption on the upgrade or replacement of local government infrastructure projects.
Ministry of Finance Sales tax exemptions complicate the tax system and set precedents that could ultimately reduce the effectiveness of the tax as an important provincial revenue source. The Province has traditionally chosen to provide grants and other forms of financial assistance to help local governments meet their objectives. Local governments are generally eligible for the same PST exemptions as other purchasers. Examples include certain kinds of emergency equipment and services, including work-related safety equipment worn by employees. Local governments are also eligible for PST exemptions specific to local government, such as certain types of emergency communication systems and machinery and equipment to generate electricity or heat and electricity at a co-generation facility.