Industrial Taxation of Liquefied Natural Gas Industry

Year
2014
Category
Community and Resources,Other,Energy,Natural Gas,Finance,Taxation
NCLGA Ref#
A1
UBCM Ref#
A5

Status

Endorsed by the NCLGA and UBCM Memberships

Details

WHEREAS the provincial government has indicated that it is considering, as part of a liquefied natural gas (LNG) regime for the Province of BC, capping increases of property tax rates for LNG-related industrial properties;

 

AND WHEREAS the UBCM, with the support of the provincial government, has long held to the following principles, most recently affirmed in the member-endorsed 2008 policy paper, “Financing Local Government: Achieving Fiscal Balance:”

 

  • The ultimate determination of the local public interest in terms of local responsibilities lies with locally elected representatives; including the freedom to determine the level of local services, expenditures and taxation;
  • Local government should have the necessary legislative powers to meet its responsibilities, the power to ensure its policies and financial programs are mutually supporting, and the discretion and flexibility to determine the most appropriate methods of meeting the local needs; and
  • Property taxation distribution must be the responsibility of local government; it should be based on actual value assessment and grants in lieu of taxes paid by other governments and their agencies should be paid on the same basis as the ordinary taxpayer:

 

THEREFORE BE IT RESOLVED that the NCLGA urge the provincial government to refrain from considering or implementing a cap on local government's ability to set property tax rates for industrial properties related to the liquefied natural gas industry.

Additional Information

UBCM Comments: The UBCM membership has not previously considered a resolution calling on the provincial government to refrain from considering or implementing a cap on local government's ability to set property tax rates for industrial properties specifically related to the liquefied natural gas industry.

However, as expressed by the sponsor in the text of the resolution, the authority of local government to set property taxation distribution is a key component of local government in BC -- one that has long been supported by local government and the provincial government alike.