1994 Legislative Session: 3rd Session, 35th Parliament
FIRST READING


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


MR. DAVID MITCHELL

BILL M 213 -- 1994

RAILWAY AMENDMENT ACT, 1994

Preamble

WHEREAS the government of the Province of British Columbia owns and operates the crown corporation known as the British Columbia Railway Company, which is exempt from municipal property tax, and

WHEREAS this tax exemption is unfair and outdated, causes a financial strain on affected municipal governments, and creates unfair competition in British Columbia's transportation market;

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

Interpretation

1 In this Act:

"the Company" is the provincial crown corporation known as the British Columbia Railway Company.

"the Minister" is the member of the Executive Council responsible for the British Columbia Railway Company.

Enactment

2 Deletion of municipal property tax exemption The Company and its subsidiaries will no longer be exempt from municipal property tax. This Act will delete section 1.5 of the British Columbia Railway Act. This Act will nullify municipal property taxation exemptions as conferred by section 2 of the Pacific Great Eastern Railway Taxation Exemption Act, S.B.C. 1926-27, c. 52 as enacted by the Pacific Great Eastern Railway Taxation Exemption Act, 1929, S.B.C. 1929, c. 49.

3 Payment of municipal property taxes by the Company

(a) The Company and its subsidiaries will be required to remit municipal property taxes directly to the municipalities, districts and regional districts where the property taxes are applicable following the deletion of section 1.5 of the British Columbia Railway Act.

(b) Subject to discussion with municipal governments, the Minister may establish a schedule for the payment of grants in lieu of taxes where the Company owns property taxable by the passage of this Act.

Commencement

4 This Act comes into force on the day of Assent.

 
Explanatory Notes

This Act amends the British Columbia Railway Act, eliminating the municipal property tax exemption granted to the British Columbia Railway Company and its subsidiaries. The Act also establishes a schedule for the payment of property taxes or the remittance of grants in lieu of property taxes where the British Columbia Railway Company has holdings and where property tax is applicable following the deletion of the municipal property tax exemption.

SECTION 2 removes BC Rail's municipal property tax exemption.

This exemption from taxation was conferred by section 2 of the Pacific Great Eastern Railway Taxation Exemption Act, S.B.C. 1926-27, c. 52 as enacted by the Pacific Great Eastern Railway Taxation Exemption Act, 1929, S.B.C. 1929, c. 49 and further modified by section 1.5 of the British Columbia Railway Act.

SECTION 3 causes the Minister to remit property taxes to the municipalities, districts and regional districts where it previously has paid no property tax, or, to enter into discussion for the establishment of a grant in lieu of property taxes to be paid to the municipal jurisdictions for all British Columbia Railway Company's land holdings and rights of way.


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