Provincial Industrial Property Tax Credit
Circular No. 09:12
ARCS File#: 195-20
To: All Municipal Financial Administrators
March 27, 2009
Re: Provincial Industrial Property Tax Credit
In October 2008, the Honourable Gordon Campbell, Premier, announced that the British Columbia government is providing a 50 percent provincial Industrial Property Tax Credit for major industrial and light industrial properties. For 2009 and subsequent tax years, an owner of Class 4 (major industry) or Class 5 (light industry) property is entitled to a credit that will reduce the provincial school tax payable on these properties by
50 percent. In Budget 2009, the Province of British Columbia (Province) announced that, starting in the 2011 tax year, the Industrial Property Tax Credit will be increased to 60 percent.
Section 131.2 of the School Act provides the Industrial Property Tax Credit and requires that the collector of taxes for the municipality deduct the amount of the credit from the school taxes otherwise payable by the owner.
The Province has set out in legislation the manner in which the tax credit is to be presented in municipal tax notices. Section 128 (4) of the School Act requires that property tax notices show the following:
To ensure full compliance with the legislation, we recommend that the provincial Industrial Property Tax Credit be presented on a separate line in the tax notice, marked clearly as a deduction from the amount of school taxes levied.
- The total amount of school taxes levied on each property by the Province;
- The amount of any provincial Industrial Property Tax Credit to which the owner is entitled; and
- The net amount of school taxes payable after the deduction of the credit.
As there are frequently costs associated with changes to the tax notice, you will soon receive an electronic funds transfer of $1,000 to help defray these costs.
If you have any questions or require further information, please contact the following:
- For information about the $1,000 payment, please contact your Financial Analyst at the Ministry of Community Development.
- For information about the Industrial Property Tax Credit and tax notices, please contact your Tax Analyst at the Ministry of Finance’s Property Taxation Branch.
Original signed by:
Talitha Soldera, CGA