Minister of Health replies to Don Quixote E-Mail

Thank you for your email of October 31, 2006, regarding hospital charges to the municipal taxpayer on their property tax bill.

Regional Hospital Districts (RHDs) were created in 1967 under the Hospital District Act in order to create a consistent and equitable approach to financing local government's share of hospital projects through local property taxation. Prior to this, only some municipal areas contributed through property taxes and there were concerns that many property owners in British Columbia (BC) paid nothing towards a hospital system to which all had access.

RHDs cost-share with the Province a portion of the capital costs associated with health facilities operating under the authority of the Hospital Act. These are primarily acute care hospitals and extended care facilities. RHDs shares are usually up to 40 percent and are raised through property taxes requisitioned for hospital purposes, with hospital tax rates varying among RHDs.

The larger lower mainland cities listed in your email, and indicated as not having a portion of property taxes collected for hospital purposes, are all members of the Greater Vancouver Regional District (GVRD). Further information is available at: http://www.gvrd.bc.ca/about/municipalities.htm. The Greater Vancouver Regional Hospital District (GVRHD) was the related organization responsible to raise funds through property taxation to fund health care in the lower mainland, being responsible for up to 40 percent of the capital costs of many health facilities.

In the late 1990's, the highest priority of the GVRD was to find a new way to govern and finance transportation for the region. The Greater Vancouver Transportation Authority Act created a new transportation authority for the region, the Greater Vancouver Transit Authority (GVTA). This Act was co-operatively developed by the Province of BC and the GVRD, with the support of its member local governments. The GVRHD was dissolved December 31, 1998, as it was no longer to have an active role in lower mainland health planning or financing. The Act also provided that the GVTA receives revenue from the gas tax and from the portion of property taxes which previously went to pay a share of hospital capital costs for the region.

As a result, the Province assumed responsibility for the full cost of health capital projects for which GVRHD funding was no longer available, which enabled the GVTA to replace the tax levy for hospital purposes with an equivalent tax levy for transportation purposes. Many of the provincial referral centres are located in the GVRD, and taxpayers from throughout the Province receive medical services in these facilities.

I appreciate the opportunity to respond.

Yours truly,

George Abbott
Minister

pc: Honourable Carole Taylor, Minister of Finance
Honourable Tom Christensen, MLA, Okagnagan-Vernon