Changes to Municipal Tax Notices
Circular No. 10:16
ARCS File#: 195-20
To: All Municipal Financial Administrators
November 4, 2010
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:
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
- The total amount of school taxes levied on each property by
- The amount of any PFLTC to which the owner is entitled; and
- The net amount of school taxes payable after the deduction of
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:
It is also important to note
that the NRAHOB is still subject to the existing minimum tax threshold
and grant phase-out provisions.
- 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.
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