B.C. communities receive grants-in-lieu of property taxes

VICTORIA– Government is distributing $16.9 million in compensation for municipal property taxes to 64 communities throughout British Columbia, Minister of Citizens’ Services and Open Government Ben Stewart announced today.

Grants-in-lieu of property taxes are distributed every November as a way to reimburse communities for services that benefited government properties, such as municipally-run sewers, roads and fire protection.

According to the Municipal Aid Act, a grant-in-lieu is payable on land owned by the provincial government – for example, courthouses, provincial government office buildings, ambulance stations and warehouses. Since schools and hospitals are exempt from paying municipal property taxes, a grant-in-lieu is not payable on these properties. In addition, highways, forests, parks or land under the control, management or administration of a Crown corporation are excluded from compensation under the act.

The funds are distributed electronically on behalf of government by the Ministry of Citizens’ Services and Open Government. The amounts paid are based on the municipality’s tax rate and the assessed value of the properties. 
------                           2012             2011                2010
Vernon                  91,841.40 -     90,627.10 -      90,279
Kamloops         1,152,764.01 -1,234,641.52 -  1,223,842

·         Kelowna              338,037.04 -   352,917.33 -     346,835

      LUMBY                  3,636.40 -       3,424.34 -          3,612

      Penticton               85,887.52 -      86,842.86 -       91,181