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Infrastructure &
Finance Division
 

Changes to Municipal Tax Notices

 

Circular No. 10:16
ARCS File#: 195-20

 


 
November 4, 2010
 

To: All Municipal Financial Administrators

Re: Changes to Municipal Tax Notices

Provincial Industrial Property Tax Credit

Beginning with the 2009 taxation year, the Province of British Columbia (Province) introduced the Provincial Industrial Property Tax Credit (PIPTC), which entitled an owner of Class 4 (major industry) or Class 5 (light industry) property to a credit that reduced the provincial school tax payable on these properties by 50 percent.  For 2011 and subsequent taxation years, this credit will be increased to 60 percent.  

Sections 131.2 and 128(4) of the School Act provide for the PIPTC and require the credit to be presented on a separate line in the tax notice, marked clearly as a deduction from the amount of school taxes levied.  

Provincial Farm Land Tax Credit 

In Budget 2009, the Honourable Colin Hansen, Minister of Finance, announced that the Province will provide a 50 percent Provincial Farm Land Tax Credit (PFLTC) for farm land (Class 9) properties.  For 2011 and subsequent tax years, an owner of Class 9 (farm land) property is entitled to a credit that will reduce the provincial school tax payable on these properties by 50 percent.  

Section 131.3 of the School Act provides for the PFLTC 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 PFLTC is to be presented in municipal tax notices.  Section 128 (4) of the School Act requires that property tax notices show the following:  

  • The total amount of school taxes levied on each property by the Province;
  • The amount of any PFLTC to which the owner is entitled; and
  • The net amount of school taxes payable after the deduction of the credit.
Similar to the PIPTC and to ensure full compliance with the legislation, we recommend that the PFLTC be presented on a separate line in the tax notice, marked clearly as a deduction from the amount of school taxes levied.  

Northern and Rural Area Home Owner Benefit  

As announced in Budget 2009, a Northern and Rural Area Home Owner Benefit (NRAHOB) of up to $200 will be available for the 2011 and subsequent tax years.  To be eligible for the benefit, the home owner must meet the requirements of the basic and/or additional Home Owner Grant and the property must be located in the Province, but outside the Capital Regional District, Greater Vancouver Regional District and Fraser Valley Regional District.

 

In accordance with section 10(1)(a) of the Home Owner Grant Act, the collector of taxes for the municipality must insert the amount of the grant and the amount of tax remaining due after deducting the grant from current year taxes on the tax notice.  With the addition of the NRAHOB, municipalities within the eligible areas will need to make the following changes to their tax notices as specified by the Minister of Finance:

  • Include the amount of the NRAHOB in the amount of the grant shown on the tax notice;
  • Amend the wording of the grant amount line from “Home Owner Grant” to “*N&R Home Owner Grant”; and
  • Include a note at the bottom of the notice that reads:
    • *N & R Home Owner Grant is the longstanding Home Owner Grant combined with the new Northern and Rural Area Home Owner Benefit of up to $200 that is available in northern and rural areas.
It is also important to note that the NRAHOB is still subject to the existing minimum tax threshold and grant phase-out provisions.

If you have any questions or need any further information please contact Ms. Brittany Johnson at Brittany.Johnson@gov.bc.ca or call 250 387-8741.



Original signed by:

 


Talitha Soldera, CGA
Director, Local Government Finance


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