Whereas section 5e of the Assessment Act - Prescribed Classes of Property Regulation B.C. Reg. 43881 mandates that land or improvements used for transporting of products or used for the storage of products are classified as Class 5 Light Industry, but specifically exclude land or improvements held for purposes ancillary to the business of transportation from railway operations; And whereas this legislation creates unfair taxation from railway operations because they are reflective of a Class 5 Light Industrial use and require high level local government service support including fire services and road infrastructure use: Therefore be it resolved that UBCM urge the provincial government to repeal section 5e from the Assessment Act - Prescribed Classes of Property Regulation B.C. Reg. 43881 in order to create fair taxation from railway operations.
Ministry of Finance The Province is aware of the issue that local governments have raised regarding property assessment and tax fairness for rail yards. BC Assessment is also aware of the issue, and the Province would encourage any municipality that has concerns regarding the assessment of a specific property reach out to BC Assessment for assistance. At this time, the Province does not intend to explore reclassification, as government undertook significant work in 199596 to classify rail yards as Class 6 Business and Other. Ministry staff are working with BC Assessment to review the assessment of linear properties, which includes rail properties in Class 2 - Utilities. The review may address some of the revenue concerns raised by local governments.