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VICTORIA
– British Columbia will introduce
legislation to provide a 10-year extension to its tax relief initiative for
ports operators, Finance Minister Carole Taylor said today.
After
consultation with the ports industry and affected local governments, the
Province intends to extend the Ports Competitiveness Initiative to 2018.
Starting in 2009, the proposed renewal would see the Province increase
compensation by the rate of inflation since 2004 and index future payments to
inflation. In addition, the proposal provides local
governments and port operators with the ability to enter into their own ports
competitive agreements using new provisions in the Community Charter.
“Our ports contribute
billions of dollars to the provincial economy each year and provide thousands
of jobs for B.C. families,” said Taylor. “This extension will provide
additional support for communities and ports operators to ensure B.C.’s ports
remain competitive into the future.”
The
Ports Competitiveness Initiative aims to encourage new investments in ports
infrastructure and secure the competitive position of British Columbia’s major
industrial ports. Introduced in 2003, the initiative provides property tax
relief to 20 major industrial ports by capping municipal tax rates on eligible
facilities and compensates local governments for the resulting impact. Recent
consultation with stakeholders fulfils the Province’s commitment to review the
initiative after three years.
“British Columbia’s ports are an integral part
of the Pacific Gateway Strategy, providing a vital transportation and trade
link to the Asia-Pacific,” said Transportation Minister Kevin Falcon. “This
extension is an important step to ensure our ports system continues to grow and
attract international investment.”
If
approved by the Legislative Assembly, as of 2009 the Ports Competitiveness
Initiative will include:
·
a continued tax rate cap
of $27.50/$1,000 of assessed value for existing investments for 10 years;
·
a continued tax rate cap
of $22.50/$1,000 on new investments for 10 years on improvements constructed
before Dec. 31, 2018;
·
increased municipal
compensation and payments indexed to the rate of inflation from 2009 to 2018;
and
·
the option for municipalities
to negotiate 10-year agreements with port operators using new provisions in the
Community Charter; these agreements would not affect a municipality’s ability
to access provincial compensation.
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contact: |
Ministry of Finance 250 387-5013 |
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