The B.C. Assessment Authority has reduced B.C. Ferries' property assessments throughout the province, including the Langdale and Earls Cove terminals, resulting in reduced property tax payments to local governments.
A Jan. 19 Property Assessment Appeal Board of B.C. decision amended B.C. Ferry Services Inc.'s assessments, with reductions of 42 per cent for 2004 and 48 per cent for 2005, according to B.C. Ferries vice-president of communications Mark Stefanson. As a result, affected municipalities and regional districts are losing the tax revenue through refund payments and future revenue loss. And money will be pouring back to B.C. Ferries to put toward its infrastructure.
Unlike municipalities, the Sunshine Coast Regional District (SCRD) will not have to write B.C. Ferries a property tax refund cheque for 2004 and 2005 - $66,000 for Langdale and Earls Cove - because the provincial government's Surveyor of Taxes will issue the refund, according to SCRD corporate services manager John France. But the SCRD will be looking at the future impacts of having the revenue difference dropping off the books, France said. As a result, other areas within the regional district may have to pay more taxes to compensate if the budget stays the same, he said.
The assessed value of the Langdale and Earls Cove terminals has dropped $7 million, France said. B.C. Ferries will now pay the SCRD $124,000 less a year in taxes, he added. In 2004, B.C. Ferries began paying property taxes because it became a corporate entity, so before 2004 the assessments were never challenged. B.C. Ferries launched the appeal based on the waterfront properties' having restricted use as ferry terminals, Stefanson said. Since the properties aren't being used to build condos or resorts, but rather are strictly for ferry services, the assessments should be less, Stefanson said. And the appeal was successful in having the amount reduced to more fair taxations levels, he said. B.C. Ferries will be discussing repayment with individual municipalities throughout the province, he said. He was not aware of regional districts' refunds being covered by the Surveyor of Taxes.
Annual surpluses, in this case the property tax refunds, go back into B.C. Ferries infrastructure, such as the Langdale terminal master plan improvements, Stefanson said.
