Provincial response to Varying Tax Rates

Below is a UBCM Resolution from the 2008 session that was passed and sent to the Provincial Government. (Their reply also follows.)

B18 - VARYING TAX RATES

WHEREAS the Community Charter allows for the establishment of different tax rates for raising municipal revenue from each property class;
AND WHEREAS there is no legislative provision to allow municipalities to impose separate tax rates for each of land and improvements;

AND WHEREAS the current system of property taxation provides little or no incentive for property owners to make significant improvements to their property or provide municipalities the opportunity to reduce the impact of sudden fluctuations in property values by adjusting the tax rates for either land or improvements:

THEREFORE BE IT RESOLVED that the Province amend Section 197 of the Community Charter to allow municipalities to have the flexibility of levying separate tax rates for each of land and improvements for each property class.

RESPONSE: Ministry of Community Development

While the variable tax rate system does not currently allow municipalities to set differing property tax rates for Land and Improvements, there are other mechanisms available through the Community Charter and Regulations. Section 216 of the Community Charter, Local Service Taxes, allows costs to be recovered through taxes imposed on land, on improvements, or on both.

Municipalities may also use tools such as the revitalization tax exemption provisions found in section 226 of the Community Charter, or assessment averaging and phasing as described in the Assessment Averaging and Phasing Regulation, B.C. Reg. 370/2003, to encourage property owners to make significant improvements to their property.
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Don Quixote Note: This is rather ironic in that Vernon had the right to set the tax base for Fire Suppression etc. through the use of the two specified areas that have been in existence since 1993. Although Vernon Council has moved MOST of the fire costs out of these specified areas into general taxation and has consequently changed the base from IMPROVEMENTS ONLY to LAND AND Improvements, the two specified areas remained and taxes are still been collected at a rather low mill rate of .0048 per $1000 of assessment for residential and .0146 for business. (Based on improvements only)