Whereas there is a lack of transparency for how assessed value is calculated for major industrial properties in British Columbia; And whereas there is a closure allowance for major industrial and electrical properties in British Columbia that allows for the reduction of improvement value to 10 of the cost for major industrial and electrical properties when they cease operations in British Columbia; And whereas local governments face significant economic and taxation challenges when major industrial and electrical proponents cease operations in their communities: Therefore be it resolved that UBCM advocate for greater transparency in major industrial and electrical property assessments and the lessening of closure allowances available to major industrial and electrical proponents when they cease operations in communities.
Ministry of Finance Government is committed to working with BC Assessment and local government partners to further increase understanding of assessment methodologies. Policies for the assessment of major industry properties are readily available from BC Assessment staff and information is also available on their website. Major Industrial property improvements are valued using legislated cost manuals which are based on replacement costs, minus annual depreciation. Moveable equipment in the buildings or service area is exempt from assessment. Land is valued using comparable sales data on vacant properties. Government recognizes that the closure of a major industry operation can have significant economic and taxation impacts on communities, particularly on smaller communities that rely on the operation for a large proportion of revenues. It is important, however, to fairly recognize the assessment and property taxation regime in the province that is based on fair and equitable property valuations. Government will continue to work with any impacted local governments to identify alternate programs to assist losses of property tax revenues due to the closure of major industry operations.