Whereas senior governments are exempt from property taxation under s. 125 of the Constitution Act; And whereas provincial grant-in-lieu amounts are determined under the Municipal Aid Act and federal payment-in-lieu amounts are determined under the Payment In Lieu of Taxes Act; And whereas grant-in-lieu revenues from exempted provincial and federal government properties are significantly lower than those revenues that would be collected through property taxation: Therefore be it resolved that UBCM lobby the provincial and federal governments to review, support and implement changes to the determination of grant-in-lieu and payment-in lieu of property tax amounts under the Municipal Aid Act and Payment In Lieu of Taxes Act.
Ministry of Municipal Affairs Section 21 of the Municipal Aid Act clearly states that the amount of the grant-in-lieu GIL of taxes is equal to the product obtained by multiplying the assessed value of Provincial land and improvements on it in the municipality by the rate, including debt, fixed by the municipality in that year for general municipal and regional district taxation purposes. Thus, any property that is subject to a GIL under the Municipal Aid Act would pay a grant equivalent to taxes if the property were taxable. Note, that some Provincial properties pay GILs not under the Municipal Aid Act but under separate legislation, like BC Hydro and universities. Because of their unique and complex operational circumstances, these organizations pay GILs that may vary from taxes if the properties were taxable. For example, BC Hydro deals with complex operations of generation, transmission and distribution that do not easily lend themselves to a GIL comparable to taxes. The Province is happy to discuss any concerns with GILs that are covered by the Municipal Aid Act.