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   NEWS RELEASE   

For Immediate Release

2008LCS0022-001788

Nov. 21, 2008

Ministry of Labour and Citizens' Services

 

MUNICIPALITIES RECEIVE $15.9 MILLION IN GRANTS

 


VICTORIA – Sixty-three local governments will benefit from a total of $15.9 million in provincial grants-in-lieu of property taxes, Labour and Citizens’ Services Minister Iain Black announced today.

 

“These grants are just part of our ongoing commitment to British Columbia’s municipalities,” said Black. “The grants provide additional resources to help communities pay for local services, and lower the tax burden on residents and businesses.”

 

Grants-in-lieu of property taxes are distributed as a way to compensate municipalities for services that benefited government properties. In the past, it was the practice that one level of government did not tax the property of another level of government. However, beginning in the 1960s the Province began to recognize its responsibility to compensate municipalities for local services that benefited these properties, such as roads, sewers, and fire protection.

 

The annual grants are based on the assessed value of provincially owned office buildings and other properties in each municipality. They are paid through Accommodation and Real Estate Services, a division of the Ministry of Labour and Citizens’ Services.

 

Since 2002, ARES and its predecessor organization have distributed more than
$124 million as grants-in-lieu to B.C. municipalities.

 

Each municipality sends a portion of its grant-in-lieu to its regional district, and those local governments use the money to help pay for local services.

 

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 1 backgrounder(s) attached.

 

 

Media

contact:

Rob Duffus

Communications Director

Ministry of Labour and Citizens’ Services

250 387-3134

 

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