1993 Legislative Session: 2nd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE GLEN CLARK
MINISTER OF FINANCE AND
CORPORATE RELATIONS

BILL 6 -- 1993

PROPERTY TAXATION STATUTES AMENDMENT ACT, 1993

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

 
Assessment Act

1 Section 26 of the Assessment Act, R.S.B.C. 1979, c. 21, is amended by adding the following subsection:

(8.1) The Lieutenant Governor in Council shall prescribe a single residential unit category of property for the purpose of administering property taxes authorized under section 135 (1) (b) of the School Act.

2 Section 80 is amended by adding the following subsection:

(5) Notwithstanding subsection (3), at any time before September 1, 1993, regulations may be made under subsection (1) (a.2) or section 26 (8.1) that are retroactive to the extent necessary to give them effect for the purposes of assessment and taxation in the 1993 taxation year.

 
Home Owner Grant Act

3 Section 1 of the Home Owner Grant Act, S.B.C. 1980, c. 18, is amended by adding the following definition:

"residential value" means the value of property that is classified under the Assessment Act as Class 1 property; .

4 Section 2 is amended by adding the following subsection:

(2.2) Notwithstanding subsections (1) and (2), if the net taxable residential value of an eligible residence as assessed under the Assessment Act exceeds $400 000, the amount of the grant shall be reduced by $10 for each $1 000 of residential value in excess of $400 000.

5 Section 3 is amended

(a) by adding the following subsection:

(3.2) Notwithstanding subsections (1) to (3), if the net taxable residential value of an eligible apartment as assessed under the Assessment Act exceeds $400 000, the amount of the grant shall be reduced by $10 for each $1 000 of residential value in excess of $400 000. , and

(b) by repealing subsection (4) and substituting the following:

(4) For the purposes of determining the amount that an owner is entitled to under subsections (2), (3) and (3.2), the owner shall ascertain

(a) the amount of the current year taxes applicable to each eligible apartment and that amount shall be the "Current Year Taxes" referred to in Schedules 1 and 2, and

(b) the net taxable residential value applicable to each eligible apartment.

6 Section 3.1 is amended

(a) by adding the following subsection:

(3.2) Notwithstanding subsections (1) to (3), if the net taxable residential value of an eligible land cooperative residence as assessed under the Assessment Act exceeds $400 000, the amount of the grant shall be reduced by $10 for each $1 000 of residential value in excess of $400 000. , and

(b) by repealing subsection (4) and substituting the following:

(4) For the purposes of determining the amount that an owner is entitled to under subsections (2), (3) and (3.2), the owner shall ascertain

(a) the amount of the current year taxes applicable to each eligible land cooperative residence and that amount shall be the "Current Year Taxes" referred to in Schedules 1 and 2, and

(b) the net taxable residential value applicable to each eligible land cooperative residence.

7 Section 3.2 is amended

(a) by adding the following subsection:

(3.2) Notwithstanding subsections (1) to (3), if the net taxable residential value of an eligible multi dwelling leased parcel residence as assessed under the Assessment Act exceeds $400 000, the amount of the grant shall be reduced by $10 for each $1 000 of residential value in excess of $400 000. , and

(b) by repealing subsection (4) and substituting the following:

(4) For the purposes of determining the amount that an owner is entitled to under subsections (2), (3) and (3.2), the owner shall ascertain

(a) the amount of the current year taxes applicable to each eligible multi dwelling leased parcel residence in respect of improvements only and that amount shall be the "Current Year Taxes" referred to in Schedules 1 and 2, and

(b) the net taxable residential value applicable to each eligible multi dwelling leased parcel residence in respect of improvements only.

8 Schedules 1 and 2 are repealed and the following substituted:

SCHEDULE 1

Current Year Taxes

Amount of Grant

$820 or more

$470

Less than $820

Current Year Taxes minus $350

SCHEDULE 2

Current Year Taxes

Amount of Grant

$845 or more

$745

Less than $845

Current Year Taxes minus $100

 
Municipal Act

9 Section 275.1 of the Municipal Act, R.S.B.C. 1979, c. 290, is amended by adding the following subsection:

(9) Notwithstanding anything in this section, for the purposes of the tax levied under section 135 (1) (b) of the School Act, the net taxable value for school purposes of land and improvements shall be used instead of the value determined by bylaw under this section.

 
School Act

10 Section 135 (1) to (3) of the School Act, S.B.C. 1989, c. 61, is repealed and the following substituted:

(1) In order to raise revenue to finance the Provincial block and debt service expenses of boards, the Province may levy school taxes consisting of

(a) a basic school tax equal to the net taxable value of the land and improvements multiplied by the appropriate rate prescribed under subsection (3) (a), and

(b) a school surtax equal to the aggregate of the appropriate surtax rates prescribed under subsection (3) (b) multiplied by the net taxable value of the residential land and improvements in excess of threshold values prescribed under subsection (3) (b) for each parcel in the single residential unit category of property as prescribed under section 26 (8.1) of the Assessment Act.

(2) The Minister of Finance and Corporate Relations shall

(a) determine the total amount to be raised by the basic school tax and the school surtax under this Act on land and improvements from each class of property in all school districts, and

(b) determine the threshold values and rates referred to in subsection (1) (b) to be applied to the land and improvement values for each parcel in excess of each threshold value.

(3) On or before May 4 in each year, the Lieutenant Governor in Council shall prescribe

(a) rates to be applied to the net taxable value of all land and improvements in each school district in order to raise the amount referred to in subsections (1) (a) and (2) (a), and

(b) the threshold values and rates referred to in subsections (1) (b) and (2) (b) to be applied to the land and improvement values for each parcel in excess of each threshold value.

11 Section 136 (2) is repealed and the following substituted:

(2) The Lieutenant Governor in Council shall adopt a variable tax rate system for the purpose of determining tax rates for land and improvements under section 135 (3) (a).

 
Vancouver Charter

12 Section 374.4 of the Vancouver Charter, S.B.C. 1953, c. 55, is amended by adding the following subsection:

(9) Notwithstanding anything in this section, for the purposes of the tax levied under section 135 (1) (b) of the School Act, the net taxable value for school purposes of land and improvements shall be used instead of the value determined by bylaw under this section.

 
Amendments to Other Acts

13 The following provisions are amended by striking out "section 26 of the Assessment Act" and substituting "section 26 (8) of the Assessment Act":

(a) section 15.1 (1) of the Assessment Authority Act;

(b) sections 12 (14) (a) and 12.1 (1) of the British Columbia Transit Act;

(c) section 26.1 (1) of the Hospital District Act;

(d) section 43 (1) of the Islands Trust Act;

(e) section 429 (1) of the Municipal Act;

(f) section 14.1 (1) of the Municipal Finance Authority Act;

(g) section 136 (1) of the School Act;

(h) section 19 (1) of the Taxation (Rural Area) Act.

 
Transitional, Commencement and Repeal

Definitions

14 (1) In sections 15 to 17 "review officer" means a review officer appointed under section 15.

(2) Words used in sections 14 to 18 have the meanings given to them in the Assessment Act.

Appointment of review officer

15 (1) Notwithstanding any other Act, the Lieutenant Governor in Council shall appoint one or more review officers to hear appeals on the classification of land and improvements relating to the category prescribed under section 26 (8.1) of the Assessment Act.

(2) A review officer shall be paid reasonable and necessary travelling and out of pocket expenses incurred in carrying out his or her duties and in addition may be paid remuneration as may be ordered by the Lieutenant Governor in Council.

Appeal to review officer

16 (1) A person, including a municipality, the minister, assessor or commissioner, may appeal to the review officer if the person is of the opinion that an error or omission exists in an assessment roll or a supplementary assessment roll because land or improvements, or both land and improvements, have been improperly classified with respect to the category prescribed under section 26 (8.1) of the Assessment Act.

(2) The last day for starting an appeal under subsection (1) is July 16, 1993.

(3) An appeal is started by delivering to a review officer a written notice of appeal that states the grounds of the appeal.

(4) The review officer may decide the appeal on the basis of written information received from the appellant or may hold a hearing.

(5) If a review officer decides that a hearing should be held, the review officer shall set a time, date and place for hearing the appeal and give notice of the hearing to the appellant and to the assessor.

Application of Assessment Act

17 (1) Subject to sections 14 and 16 and the regulations and notwithstanding section 10 of the Assessment Act, the review officer has the powers of a Court of Revision under the Assessment Act.

(2) Subject to subsection (3) and the regulations, an appeal of a decision of the review officer may be made to the board and the Assessment Act applies to that appeal.

(3) For the purposes of an appeal under subsection (2), the board must restrict the appeal to the question of whether or not the land or improvements, or both, have been properly classified with respect to the category prescribed under section 26 (8.1) of the Assessment Act.

Regulations

18 (1) The Lieutenant Governor in Council may make regulations respecting appeals under sections 15 to 17.

(2) Without limiting subsection (1) the Lieutenant Governor in Council may make regulations modifying the application of the Assessment Act with respect to appeals under sections 15 to 17.

Commencement

19 (1) Sections 3 to 8 shall be deemed to have come into force on January 1, 1993 and are retroactive to the extent necessary to give them effect on and after that date.

(2) Sections 14 to 18 are repealed on December 31, 1993.

 
Explanatory Notes

 
Assessment Act

SECTION 1: provides for the single residential unit category of property to be prescribed for the purpose of the school surtax.

SECTION 2: allows regulations relating to exemptions from liability to assessment and relating to the single residential unit category of property to be made retroactively.

 
Home Owner Grant Act

SECTION 3: defines "residential value".

SECTION 4: provides for the reduction of the home owner grant with respect to eligible residences of residential value in excess of $400 000.

SECTION 5: provides for the reduction of the home owner grant with respect to eligible apartments of residential value in excess of $400 000.

SECTION 6: provides for the reduction of the home owner grant with respect to eligible land cooperative residences of residential value in excess of $400 000.

SECTION 7: provides for the reduction of the home owner grant with respect to eligible multi dwelling leased parcels of residential value in excess of $400 000.

SECTION 8: increases the home owner grant by $25 for seniors and handicapped persons and by $20 for others.

 
Municipal Act

SECTION 9: amends the Municipal Act consequential to the amendments made to section 135 of the School Act.

 
School Act

SECTION 10: provides for a school surtax on land and improvements in the single residential unit category of property with a net taxable value in excess of a threshold value to be set by regulation.


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