British Columbia officials are in the midst of considering a controversial plan proposed by BC Assessment to reduce the taxable value of pipeline and other projects, a move that has stirred up discontent among local leaders.
Finance Minister Brenda Bailey has pledged to review the plan put forth by BC Assessment, which could potentially lower the taxable value of pipelines by $300 million in the Thompson-Nicola Regional District alone, representing over a quarter of the original assessment.
David Laird, the Director of the Thompson-Nicola Regional District, expressed strong disapproval, labeling the lack of prior communication about the proposal as “disgusting.” He warned that the suggested changes could significantly impact municipal budgets and burden residents and small businesses with increased tax responsibilities.
During a recent board meeting with the Thompson-Nicola Regional District, a BC Assessment official outlined the details of the plan, emphasizing its potential effects on taxation and financial allocations.
Ashcroft Mayor Barbara Roden, who also serves as the regional district’s chair, echoed concerns over the possible repercussions of the proposal on ordinary citizens across the province. She criticized the idea of companies passing on costs to residents who have already been disrupted by the presence of pipelines in their communities.
Chris Whyte, B.C. Assessment’s manager of specialized costs, highlighted that the proposed alterations would influence municipal budgets but refrained from providing specific numerical estimates. The new valuation approach would revolve around handling factors like depreciation in a different manner.
While the primary focus was on properties hosting pipelines, Whyte mentioned that BC Assessment intends to review rates for other utilities such as rail, telephone, cable, and potentially electrical transmission and distribution.
Roden emphasized the importance of seeking input from municipalities before finalizing the policy changes, urging BC Assessment to engage in meaningful consultations with local governments.
Whyte confirmed that feedback would be shared with the Ministry of Finance, with plans to seek approval from the attorney general and Finance Minister Bailey in November, bypassing the need for further consultations.