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Infrastructure &
Finance Division
 

Regional District Apportionment Legislation (Section 804.11 of the Local Government Act)

 

Circular No. 07:16
ARCS File#: 195-20

 


 
June 11, 2007
To: All Regional District Chief Administrative Officers
 
Re: Regional District Apportionment Legislation (Section 804.11 of the Local Government Act)
 

A recent amendment to the Local Government Act introduces a new tool for local governments. The amendment, found in Section 804.11 [Exclusion of property under creditor protection from apportionment], enables a regional district board to annually exclude the value of a non performing property from the apportionment calculation for one or more eligible services during the requisition.
 

A non-performing property is a property within the area of an eligible service that is owned or occupied by an insolvent person. An eligible service is a regional district service that apportions its costs on some form of assessment basis (e.g. assessed, net taxable or converted value of land and/or improvements).
 

This authority should be considered if the board concludes that the inclusion of the non performing property represents a significant tax inequity issue within the regional district and that the taxing authority (municipality or the Surveyor of Taxes) will likely never collect the taxes owing or fully recover costs through a tax sale.
 

Should the board grant an exclusion, it is non-reversible once the requisition process is complete for the year in which the exclusion occurred (even if the property owner/occupier becomes solvent again). Thus, the Province does not anticipate that this power will be exercised frequently. Regional districts will need to determine if a situation is serious enough to warrant exercising this apportionment exclusion.
 

It is important to note that this amendment to provincial legislation does not exempt the excluded property from taxation, as taxes are still imposed and owing. The legislative amendment simply recognizes that in significant situations where the chances of collecting taxes are minimal, the value of a non-performing property might best be excluded from the apportionment calculation of a participant’s share of a regional district requisition.
 

Should you have any questions or comments regarding this new enabling authority, please contact your financial analyst.
 

Original signed by:
 
Talitha Soldera
A/Director
Local Government Infrastructure and Finance Division
 

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