Major Industry Property Tax Regulation

By Jan Baker

Members of the Union of British Columbia Municipalities (UBCM) are concerned about the possibility that the BC Government may cap or regulate municipal property taxes.

The Pulp and Paper Industry Advisory Council has submitted its report to the newly created British Columbia Competition Council. The Council was established on March 30, 2006 by Premier Gordon Campbell. The purpose of the Council is to “review several priority industry sectors and identify barriers to economic growth, and solutions to overcome them that can be taken by industry or government.”

One of the findings from the Pulp and Paper Industry Advisory Committee was that “Municipal industrial tax rates are adversely affecting the competitiveness of the pulp and paper industry and act as a disincentive to new investment. It is proposed that these tax rates should be reduced and capped.” Any reduction in property taxes paid by industry will result in higher taxes being paid by residential and other classes of assessment. 

UBCM members feel that the Government has their own means to reduce taxation on major industry, if the government wishes.

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