BILL 28 – 2022
MUNICIPAL AFFAIRS STATUTES (PROPERTY TAXATION)
AMENDMENT ACT, 2022
HIS MAJESTY, by and with the advice and consent of
the Legislative Assembly of the Province of British Columbia, enacts as
follows:
Community Charter
1 The Community Charter, S.B.C. 2003, c. 26, is amended in section 165 (3.1) by adding the following paragraph:
(b.1) the provision of development potential relief under section 198.1; .
2 The following section is added:
Development potential relief
198.1 (1) In this section:
"development potential" means the difference between
(a) the assessed value of a property, and
(b) the actual value of the property determined taking
into consideration only the actual use of the land and improvements that
comprise the property and not taking into consideration any other use
to which the land or improvements could be put;
"eligible land" has the meaning given to it in subsection (5);
"eligible occupier" means a tenant or owner-occupier of an improvement described in subsection (5) (b) (i).
(2) For the purpose of relieving the impact of
development potential on eligible occupiers, an annual property tax
bylaw may impose property taxes under section 197 (1) (a) on eligible
land at reduced tax rates.
(3) An annual property tax bylaw that provides relief under this section
(a) must identify the properties for which relief is provided,
(b) must specify for each of those properties the
percentage of the eligible land, comprising the property, that is to be
taxed at the reduced tax rates,
(c) must establish the reduced tax rates as follows:
(i) a tax rate for property class 5 that is lower
than the tax rate established under section 197 (3) for that property
class or, if separate rates are established, the sum of those rates;
(ii) a tax rate for property class 6 that is lower
than the tax rate established under section 197 (3) for that property
class or, if separate rates are established, the sum of those rates, and
(d) may require an owner of a property identified under
paragraph (a) to give notice of the relief to the eligible occupiers of
the property.
(4) An annual property tax bylaw may specify different
percentages under subsection (3) (b) for different areas, properties or
kinds of properties.
(5) Land is eligible for relief under this section if
(a) the land is classified as property class 5 or 6, and
(b) the property that includes the land meets all of the following criteria:
(i) the property includes an improvement that
(A) is classified as property class 5 or 6, and
(B) was in use on October 31 of the taxation year
immediately preceding the taxation year to which the annual property tax
bylaw relates;
(ii) the property has a land-value ratio equal to or greater than 0.95, determined by taking the quotient of
(A) the assessed value of the land that is classified as property class 5 or 6, and
(B) the assessed value of the land and improvements that are classified as property class 5 or 6;
(iii) the property is not disqualified under subsection (6).
(6) A property is disqualified from relief under this section if
(a) relief under this section was provided for the
property for a taxation year that is more than 4 or a prescribed number
of years, whichever is greater, preceding the taxation year to which the
annual property tax bylaw relates, or
(b) the property includes any of the following:
(i) land or improvements classified as property class 2, 3, 4, 7, 8 or 9;
(ii) land or improvements that are exempt under this
Act or another enactment from taxation under section 197 (1) (a) of this
Act, other than under a prescribed exemption;
(iii) land classified as property class 5 or 6 on which tax is imposed in accordance with section 198 of this Act;
(iv) property designated under section 20.2 [ski hill property] or 20.5 [restricted-use property] of the Assessment Act;
(v) prescribed property.
(7) The following provisions do not apply in relation to relief provided under this section:
(a) section 25 (1) [prohibition against assistance to business];
(b) section 197 (3) (b) [annual property tax bylaw – limits on rates].
(8) The Lieutenant Governor in Council may make regulations as follows:
(a) prescribing a number of years for the purposes of subsection (6) (a);
(b) prescribing exemptions for the purposes of subsection (6) (b) (ii);
(c) prescribing kinds of properties for the purposes of subsection (6) (b) (v).
Vancouver Charter
3 The Vancouver Charter, S.B.C. 1953, c. 55, is amended in section 219 (2) by adding the following paragraph:
(b.1) the provision of development potential relief under section 374.6; .
4 Section 374.1 is amended by striking out "In sections 374.2 to 374.5" and substituting "In sections 374.2 to 374.6,".
5 The following section is added:
Development potential relief
374.6 (1) In this section:
"development potential" means the difference between
(a) the assessed value of a property, and
(b) the actual value of the property determined taking
into consideration only the actual use of the land and improvements that
comprise the property and not taking into consideration any other use
to which the land or improvements could be put;
"eligible land" has the meaning given to it in subsection (5);
"eligible occupier" means a tenant or owner-occupier of an improvement described in subsection (5) (b) (i);
"municipal property taxes"
means property taxes levied to raise money other than for the purposes
of an enactment set out in section 374.4 (7) (a) (i) to (vi).
(2) For the purpose of relieving the impact of
development potential on eligible occupiers, a rating by-law may levy
municipal property taxes under section 373 on eligible land at reduced
rates of levy.
(3) A rating by-law that provides relief under this section
(a) must identify the properties for which relief is provided,
(b) must specify for each of those properties the
percentage of the eligible land, comprising the property, on which
property tax is to be levied at the reduced rates of levy,
(c) must establish the reduced rates of levy as follows:
(i) a rate of levy for property class 5 that is lower
than the rate of levy established under section 373 that would
otherwise apply to that property class;
(ii) a rate of levy for property class 6 that is
lower than the rate of levy established under section 373 that would
otherwise apply to that property class, and
(d) may require an owner of a property identified under
paragraph (a) to give notice of the relief to the eligible occupiers of
the property.
(4) A rating by-law may specify different percentages
under subsection (3) (b) for different areas, properties or kinds of
properties.
(5) Land is eligible for relief under this section if
(a) the land is classified as property class 5 or 6, and
(b) the property that includes the land meets all of the following criteria:
(i) the property includes an improvement that
(A) is classified as property class 5 or 6, and
(B) was in use on October 31 of the taxation year immediately preceding the taxation year to which the rating by-law relates;
(ii) the property has a land-value ratio equal to or greater than 0.95, determined by taking the quotient of
(A) the assessed value of the land that is classified as property class 5 or 6, and
(B) the assessed value of the land and improvements that are classified as property class 5 or 6;
(iii) the property is not disqualified under subsection (6).
(6) A property is disqualified from relief under this section if
(a) relief under this section was provided for the
property for a taxation year that is more than 4 or a prescribed number
of years, whichever is greater, preceding the taxation year to which the
rating by-law relates, or
(b) the property includes any of the following:
(i) land or improvements classified as property class 2, 3, 4, 7, 8 or 9;
(ii) land or improvements that are exempt under this
Act or another enactment from municipal property taxes levied under
section 373 of this Act, other than under a prescribed exemption;
(iii) land classified as property class 5 or 6 on which tax is imposed in accordance with section 374.4 of this Act;
(iv) property designated under section 20.2 [ski hill property] or 20.5 [restricted-use property] of the Assessment Act;
(v) prescribed property.
(7) The following provisions do not apply in relation to relief provided under this section:
(a) section 374.2 [variable property tax rate system];
(b) section 374.3 [limits on variable tax rate system].
(8) The Lieutenant Governor in Council may make regulations as follows:
(a) prescribing a number of years for the purposes of subsection (6) (a);
(b) prescribing exemptions for the purposes of subsection (6) (b) (ii);
(c) prescribing kinds of properties for the purposes of subsection (6) (b) (v).
Consequential Amendments
Municipalities Enabling and Validating Act (No. 4)
6 Division 1 of Part 4 of the Municipalities Enabling and Validating Act (No. 4), S.B.C. 2011, c. 14, is repealed.
Commencement
7 This Act comes into force on the date of Royal Assent.
Explanatory Notes
CLAUSE 1: [Community Charter, section 165] is consequential to the addition by this Bill of section 198.1 to the Act.
CLAUSE 2: [Community Charter, section 198.1]
enables municipal councils to provide tax relief to lessen the impact
of development potential on tenants and owner-occupiers of class 5 or 6
improvements.
CLAUSE 3: [Vancouver Charter, section 219] is consequential to the addition by this Bill of section 374.6 to the Act.
CLAUSE 4: [Vancouver Charter, section 374.1] is consequential to the addition by this Bill of section 374.6 to the Act.
CLAUSE 5: [Vancouver Charter, section 374.6]
enables the Council of the City of Vancouver to provide tax relief to
lessen the impact of development potential on tenants and
owner-occupiers of class 5 or 6 improvements.
CLAUSE 6: [Municipalities Enabling and Validating Act (No. 4), Division 1 of Part 4] is consequential to the amendments made by this Bill to the Community Charter and the Vancouver Charter.
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