Ports Property Tax Act

PORTS PROPERTY TAX
NEW INVESTMENT REGULATION

Interpretation

1 In this regulation:

"Act" means the Ports Property Tax Act;

"assessed value of improvements" means the value calculated in accordance with the following formula:

A - UF - I + D + UFD + ID - AD

where

A	=	the assessed value of taxable Class 4 improvements under the Assessment Act on the revised assessment roll of a taxation year, subject to any final determination;
UF	=	the portion of A determined by applying, in accordance with the MIPM, the update factor for that taxation year;
I	=	the portion of A determined by applying, in accordance with the MIPM, the interest factor for that taxation year;
D	=	the amount of depreciation deducted in accordance with the MIPM to arrive at the value of A;
UFD	=	a value determined by applying, in accordance with the MIPM, the update factor for the year of designation to the value of A - UF - I + D;
ID	=	a value determined by applying, in accordance with the MIPM, the interest factor for the year of designation to the value of A - UF - I + D + UFD;
AD	=	an amount of depreciation calculated in accordance with the MIPM with respect to the value of A - UF - I + D + UFD + ID;

"baseline value" means the assessed value of improvements in the year of designation;

"Class 4 improvement" means property that is both

(a) Class 4 property, and

(b) an industrial improvement;

"current taxation year" means the taxation year within the period 2005 through 2009 for which the value of new investment in improvements is determined under section 2;

"final determination" means any change in assessment that is finally determined under the Assessment Act by a supplementary assessment roll or on further appeal;

"industrial improvement" has the same meaning as in section 20 (1) of the Assessment Act;

"interest factor" means the factor used to calculate interest during construction in the MIPM;

"MIPM" means the Major Industrial Properties Manual established or adopted under section 20 (5) of the Assessment Act;

"revised assessment roll" has the same meaning as in section 1 of the Assessment Act;

"update factor" means the cost update factor in the MIPM;

"year of designation" means

(a) the calendar year during which property is designated for the purposes of section 4 of the Act, or

(b) if the property is designated after October 31 but before the end of December 31 of the same calendar year, the following calendar year.

Property tax rate cap on new investment in port facilities

2 New investment in improvements on property described in sections 4 (1) (a) and (b) of the Act is subject to the maximum municipal tax rate set out in section 4 (1) of the Act for the period set out in section 4 (4) of the Act, if the assessed value of the improvements is included in an assessment roll during the period set out in section 4 (2) of the Act.

New investment in improvements

3 (1) Subject to this section, for the purposes of section 4 of the Act, the value of new investment in improvements, for any of the 2005 through 2009 taxation years, is the sum of the amounts determined by completing the calculation set out in subsection (2) for

(a) the current taxation year, and

(b) the taxation year following the year of designation and each of the subsequent taxation years within the period up to the current taxation year.

(2) The amounts for the purposes of subsection (1) for any of the 2005 through 2009 taxation years are to be determined in accordance with the following calculation:

(AVI - AVIP) - B - AVIP)

where

AVI	=	the assessed value of improvements for that year;
AVIP	=	the assessed value of improvements for the previous year;
B	=	the baseline value.

(3) In determining an amount under subsection (2), if (B - AVIP) yields a negative number, the value to be used for (B - AVIP) is nil.

(4) If an amount determined under subsection (2) is a negative number, the amount for the purposes of the calculation is nil.

(5) An amount determined under subsection (2) is to be adjusted for the incremental change in the update factor and for depreciation by multiplying that amount by the following:

[(CU/DU) (1 - 0.05 Y)]

where

CU	=	the current update factor;
DU	=	the update factor in the year of designation;
Y	=	the number of years by which the taxation year for which the amount is being determined under subsection (1) (a) or (b) precedes the current taxation year.

(6) For a taxation year within the period set out in section 4 (4) of the Act, but after the 2009 taxation year, the value of new investment in improvements on property is the sum of the amounts

(a) determined under subsection (2) for each of the years within the period referred to in subsection (1) that the property was designated, and

(b) adjusted in accordance with subsection (5) for each year within the period referred to in section 4 (4) of the Act.

(7) If the value of new investment in improvements on property for any taxation year, determined in accordance with this section, exceeds the assessed value of taxable Class 4 improvements on the property for that year, the value of new investment in improvements for the purposes of section 4 of the Act for that year is the assessed value of taxable Class 4 improvements.

[Provisions of the Ports Property Tax Act, S.B.C. 2004, c. 7, relevant to the enactment of this regulation: section 4]

Copyright (c) 2005: Queen's Printer, Victoria, British Columbia, Canada