Changes to the Provincial Industrial Property Tax Credit
Circular No. 13:05
ARCS File#: 195-20
February 22, 2013
To: All Municipal Financial Administrators
Re: Changes to the Provincial Industrial Property Tax Credit
In Budget 2013, the Honourable Michael de Jong, Minister of Finance, announced that the Province of British Columbia (Province) will be phasing out the Provincial Industrial School Property Tax Credit for class 5 (Light Industry) properties over two years starting with the 2013 taxation year.
For the 2013 taxation year, the reduction to the credit will be achieved through the setting of the class 5 school tax rate. The class 5 school tax rate will provisionally be determined according to the longstanding general rate setting policy for provincial non‑residential school property tax rates. The final school tax rate for 2013 will be set such that the benefit of the credit for class 5 will be halved. The benefit of the credit for class 5 will be eliminated for the 2014 taxation year.
As the adjustment is being done through an increase to the school tax rate, no change is required to municipal tax notices for 2013. You will need to continue to provide the 60 percent credit to class 5 properties as you did previously. We will be providing more information about the elimination of the credit for class 5 in 2014 as it becomes available.
The above change is only for class 5 (Light Industry) properties. There are no changes to the Provincial Industrial School Property Tax Credit for class 4 (Major Industrial) properties, nor to the Provincial Farm Land Tax Credit for class 9 (Farm Land) properties.
If you have any questions or require further information, please contact
Ms. Brittany Johnson by telephone at: 250 387-8741, or by email at: Brittany.Johnson@gov.bc.ca, or your Tax Analyst at the Ministry of Finance’s Property Taxation Branch.
Original signed by:
Talitha Soldera, CGA
Local Government Finance