Definitions

12   In this Part:

Definitions

12   In this Division:

"assessment authority" means the British Columbia Assessment Authority;

"base year", in relation to a municipality, means a taxation year specified in an exemption bylaw of the municipality as the base year for that municipality;

"classified" means classified under the Assessment Act;

"council" includes the Council of the City of Vancouver;

"eligible portion", in relation to assessed value or net taxable value, means the sum of the following portions of the value:

(a) the portion attributable to land classified as class 5 property;

(b) the portion attributable to land classified as class 6 property;

(c) the portion attributable to improvements classified as class 5 property;

(d) the portion attributable to improvements classified as class 6 property;

"eligible property" has the meaning given to it in section 15 [eligible properties];

"eligible taxation year" means a taxation year after 2019 and before 2025;

"exemption bylaw" means a bylaw under section 13 (1) [exemption bylaw];

"property" has the same meaning as in section 1 (1) of the Assessment Act;

"reported net taxable value", in relation to a property and taxation year, means the following value, adjusted, if applicable, under section 17 (2) [adjustments by collector]:

(a) for the purposes of taxation under section 197 (1) (a) [annual property tax bylaw] of the Community Charter or section 373 [annual rating by-law] of the Vancouver Charter, the value reported under section 16 (3) (b) (ii) [reported net taxable value] of this Act for the property and taxation year;

(b) for the purposes of taxation under section 119 [general school tax] of the School Act, the value reported under section 16 (3) (c) (ii) of this Act for the property and taxation year;

"taxation year" has the same meaning as in section 1 (1) of the Assessment Act;

"year-end assessed value", in relation to a property and taxation year, means the assessed value of the property for the taxation year, as shown in the assessment roll as that roll stands on December 31 of the prior taxation year.

Permissive tax exemption — interim business relief

13   (1) A council of a municipality may, by bylaw in accordance with this section, exempt eligible properties in the municipality from taxation under the following provisions, as applicable:

(a) section 197 (1) (a) of the Community Charter;

(b) section 373 of the Vancouver Charter.

(2) An exemption bylaw for a taxation year must specify for the taxation year, in accordance with the regulations, if applicable, and subsections (3) and (4),

(a) the base year for the municipality,

(b) the land value ratio threshold for purposes of section 15 (1) (c),

(c) the base change threshold for the purposes of section 15 (3), and

(d) the extent of the exemption, expressed as a percentage of the eligible portion of assessed value.

(3) An exemption bylaw may not specify a base year that is

(a) before 2015, or

(b) different from a base year previously specified in an exemption bylaw of the municipality.

(4) An exemption bylaw may specify different percentages under subsection (2) (d) for different areas, properties or kinds of properties.

(5) Subject to the regulations, an exemption bylaw may be adopted only

(a) for an eligible taxation year,

(b) on or after January 1 and before March 31 of the eligible taxation year, and

(c) after notice of the proposed bylaw has been given in accordance with section 20 (2) [application of Community Charter] or 21 (1) [application of Vancouver Charter], as applicable.

(6) Section 135 (3) [requirements for passing bylaws — delay between third reading and adoption] of the Community Charter does not apply in relation to an exemption bylaw for 2020.

(7) Section 25 (1) [prohibition against assistance to business] of the Community Charter does not apply in relation to an exemption bylaw.

Effect of tax exemption

14   (1) If a property is exempt under an exemption bylaw for a taxation year,

(a) despite section 197 (2) of the Community Charter, property value tax imposed under section 197 (1) (a) of that Act on the property for the taxation year must be based on the reported net taxable value for the property and taxation year, and

(b) despite sections 374 [levy on net taxable value] and 396 [property tax exemptions] of the Vancouver Charter, a levy imposed under section 373 of that Act on the property for the taxation year must be imposed on the reported net taxable value for the property and taxation year.

(2) Despite the Assessment Act and any other enactment, an exemption under section 13 of this Act must not be

(a) entered in an assessment roll, or

(b) considered as an exemption for the purposes of the Assessment Act or any other enactment other than this Part.

Eligible properties

15   (1) A property in a municipality is eligible for a tax exemption under section 13 for a taxation year if

(a) the property, as shown in the assessment roll as that roll stands on December 31 of the prior taxation year, is classified, in whole or in part, as class 5 or class 6 property for the taxation year,

(b) the property, on December 31 of the prior taxation year, is subject to a commercial lease that obliges the leaseholder to pay an amount of money that varies with the amount of tax imposed on the property for the taxation year under

(i) section 197 (1) (a) of the Community Charter, or

(ii) section 373 of the Vancouver Charter,

(c) the land value ratio determined under subsection (2) for the property and taxation year is equal to or greater than the land value ratio threshold set by the municipality under section 13 (2) (b) for the property and taxation year, and

(d) the property is an outlier under subsection (3) for the taxation year.

(2) The land value ratio for a property and taxation year is the quotient, expressed as a percentage, of

(a) the year-end assessed value for the taxation year of the land that comprises the property, and

(b) the year-end assessed value for the taxation year of the land and improvements that comprise the property.

(3) A property in a municipality is an outlier for a taxation year if the base change determined under subsection (4) for the property and taxation year is equal to or greater than the base change threshold set by the municipality under section 13 (2) (c) for the property and taxation year.

(4) The base change for a property and taxation year is the amount, expressed as a positive or negative percentage, determined in accordance with the following formula:

Reported net taxable value

16   (1) In this section, "averaging or phasing bylaw" means

(a) a bylaw imposing tax rates under section 198 [assessment averaging and phasing options] of the Community Charter, or

(b) a bylaw levying rates under section 374.4 (2) or (3) [assessment averaging and phasing in by-laws] of the Vancouver Charter.

(2) Subject to the regulations, if a municipality adopts an exemption bylaw for a taxation year,

(a) the municipality must give a copy of the bylaw to the assessment authority as soon as practicable and no later than April 2 of the taxation year, and

(b) the assessment authority must deliver a report in accordance with this section to the municipality by April 15 of the taxation year.

(3) A report under subsection (2) (b) in relation to an exemption bylaw for a taxation year must set out the following for each property exempted by the bylaw:

(a) the value of the exemption, calculated by multiplying

(i) the extent of the exemption that is specified for the property under section 13 (2) (d) for the taxation year, and

(ii) the eligible portion of the assessed value of the property for the taxation year;

(b) for the purposes of taxation under section 197 (1) (a) of the Community Charter or section 373 of the Vancouver Charter,

(i) the net taxable value for the property and taxation year, as determined under subsection (4) of this section, and

(ii) the difference between

(A) the net taxable value referred to in subparagraph (i), and

(B) the lesser of the value of the exemption and the eligible portion of the net taxable value referred to in subparagraph (i);

(c) for the purposes of taxation under section 119 of the School Act,

(i) the net taxable value for the property and taxation year, as determined under subsection (5) of this section, and

(ii) the difference between

(A) the net taxable value referred to in subparagraph (i), and

(B) the lesser of the value of the exemption and the eligible portion of the net taxable value referred to in subparagraph (i).

(4) Subject to the regulations, for the purposes of subsection (3) (b) (i), the net taxable value for a property and taxation year is the following, as applicable:

(a) if an averaging or phasing bylaw applies on March 31 of the taxation year in relation to the property for the taxation year, the difference between the following amounts:

(i) the averaged or phased value of the property for the taxation year, as determined under subsection (6);

(ii) the total value of any tax exemptions, other than an exemption under section 13, that apply in relation to the property for the taxation year for the purposes of taxation under section 197 (1) (a) of the Community Charter or section 373 of the Vancouver Charter, as applicable;

(b) in any other case, the net taxable value for the property and taxation year for the purposes of taxation under section 197 (1) (a) of the Community Charter or section 373 of the Vancouver Charter, as applicable.

(5) Subject to the regulations, for the purposes of subsection (3) (c) (i), the net taxable value for a property and taxation year is the following, as applicable:

(a) if an averaging or phasing bylaw applies on March 31 of the taxation year in relation to the property for the taxation year, the difference between the following amounts:

(i) the averaged or phased value of the property for the taxation year, as determined under subsection (6);

(ii) the total value of any tax exemptions, other than an exemption under section 13, that apply in relation to the property for the taxation year for the purposes of taxation under section 119 of the School Act;

(b) in any other case, the net taxable value for the property and taxation year for the purposes of taxation under section 119 of the School Act.

(6) For the purposes of subsections (4) (a) (i) and (5) (a) (i), the averaged or phased value of a property for a taxation year is the following, as applicable:

(a) in the case of a property in a municipality other than the City of Vancouver, the modified assessed value, determined in accordance with the regulations under section 198 (2) (a) of the Community Charter, of the property for the taxation year;

(b) in the case of a property in the City of Vancouver, the amount determined in accordance with section 374.4 (2) or (3) of the Vancouver Charter, as applicable, for the property and taxation year.

(7) For the purposes of a report under subsection (2) (b) in relation to a taxation year, the following values are to be determined on the basis of the assessment roll for the taxation year as that roll stands on March 31 of the taxation year:

(a) an eligible portion and assessed value referred to in subsection (3) (a) (ii);

(b) the value of a tax exemption, other than an exemption under section 13, referred to in subsection (4) (a) (ii) or (5) (a) (ii) of this section;

(c) a net taxable value referred to in subsection (4) (b) or (5) (b);

(d) a modified assessed value or amount referred to in subsection (6) (a) or (b).

(8) A municipality must make available to the public, on request, a report under subsection (2) (b).

Adjustments to report by collector

17   (1) In this section, "collector", in relation to the City of Vancouver, means the Collector of Taxes under the Vancouver Charter.

(2) Subject to the regulations, the collector must adjust the reported net taxable values for a property and taxation year if

(a) there are errors or omissions in the report under section 16 (2) (b), or

(b) the assessment of the property for the taxation year, as shown on the assessment roll, has changed since March 31 of the taxation year.

(3) For certainty, the following provisions apply in relation to adjustments under subsection (2) (b):

(a) in the case of a property in a municipality other than the City of Vancouver, sections 240 [adjustments for assessment changes] and 241 [taxation based on supplementary roll] of the Community Charter;

(b) in the case of a property in the City of Vancouver, sections 375 [pending appeals] and 401A [supplementary roll] of the Vancouver Charter.

Notice to owners and lessees — exemption notice

18   (1) If the council of a municipality adopts an exemption bylaw for a taxation year, the municipality must, as soon as practicable, give notice of the exemption to the owner of each property exempted by the bylaw.

(2) A notice under subsection (1) in relation to a property and taxation year must

(a) state that the property is exempt under section 13 for the taxation year,

(b) state the extent of the exemption that is specified under section 13 (2) (d) for the property and taxation year, and

(c) advise that the owner or any other person may

(i) review a report under section 16 (8) [reported net taxable value], and

(ii) request adjustments under section 17 (2) [adjustments by collector].

(3) If the owner of a property has received a notice under subsection (1), the owner must promptly deliver a copy of the notice to each lessee of any portion of the property under a lease referred to in section 15 (1) (b).

Notice to owners and lessees — tax notice or statement

19   (1) In this section:

"tax notice" means a tax notice under section 237 (1) of the Community Charter;

"tax statement" means a tax statement under section 403 (1) of the Vancouver Charter.

(2) If the council of a municipality adopts an exemption bylaw for a taxation year, the tax notice or tax statement of the municipality for the exempt properties and taxation year, as the case may be, must

(a) include the statements and advice referred to in section 18 (2) (a) to (c), and

(b) advise that the rates determined under section 119 (3) of the School Act have been adjusted as a result of the bylaw.

(3) If the owner of a property has received a notice or statement referred to in subsection (2) in relation to the property, the owner must promptly deliver a copy of the notice or statement, as the case may be, to each lessee of any portion of the property under a lease referred to in section 15 (1) (b).

Application of Community Charter

20   (1) For the purposes of section 98 (2) (b) [annual municipal report] of the Community Charter, a tax exemption provided under section 13 of this Act is deemed to be a tax exemption provided under Division 7 [Permissive Tax Exemptions] of Part 7 [Municipal Revenue] of that Act.

(2) A council of a municipality other than the City of Vancouver must give notice of a proposed exemption bylaw in accordance with section 94 [requirements for public notice] of the Community Charter.

(3) A notice under subsection (2) must

(a) describe the proposed exemption, and

(b) state the taxation year for which the exemption will be provided.

(4) Despite section 94 (2) (b) of the Community Charter, a notice under subsection (2) of this section in relation to an exemption bylaw for the 2020 taxation year need only be published once.

Application of Vancouver Charter

21   (1) The council of the City of Vancouver must give notice of a proposed exemption bylaw by

(a) publishing notice of the proposed exemption bylaw in accordance with section 3 [requirements for public notice] of the Vancouver Charter, and

(b) from the date on which the notice is first published under paragraph (a) of this subsection, posting that notice for public inspection in the City Hall during its regular office hours.

(2) A notice under subsection (1) must

(a) describe the proposed exemption, and

(b) state the taxation year for which the exemption will be provided.

(3) Despite section 3 (2) (b) of the Vancouver Charter, a notice under subsection (1) of this section in relation to an exemption bylaw for the 2020 taxation year need only be published once.

School tax exemptions

22   (1) This section applies despite section 119 [general school tax] of the School Act.

(2) If a property in a municipality is exempt under an exemption bylaw for a taxation year,

(a) the net taxable value must continue to be the basis for determining the amount of money to be raised in the municipality for the purposes of section 119 of the School Act,

(b) a tax levied under section 119 (1) of the School Act on the property for the taxation year must be based on the reported net taxable value for the property and taxation year, and

(c) the council of the municipality must, by resolution, substitute, for the rates set under section 119 (3) of the School Act for the taxation year, rates that are sufficient to raise the same amount of revenue in the municipality from each property class by taxation under section 119 of the School Act as the amount that would have been raised by taxation under that section had the bylaw not been adopted.

(3) If the amount of revenue raised in any year under subsection (2) (c) is more or less than the amount that would have been raised had the council not substituted the rates, the difference must be used to adjust the rates for the next year.

(4) Land and improvements that are exempt from taxation under section 13 for a taxation year are not, by reason of that exemption, exempt under

(a) section 131 (1) [other exemptions] of the School Act, or

(b) any other enactment that applies section 131 (1) of the School Act.

Modified dates for 2020 taxation year

23   Subject to the regulations, the following dates are modified in relation to the 2020 taxation year:

(a) the reference in section 13 (5) (b) [exemption bylaw — adoption period] to March 31 is to be read as a reference to April 22;

(b) the reference in section 16 (2) (a) [reported net taxable value] to April 2 is to be read as a reference to April 24;

(c) the reference in section 16 (2) (b) to April 15 is to be read as a reference to May 8.

Power to make regulations

24   (1) For the purposes of this Division, the Lieutenant Governor in council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) specifying the following or a range within which the following must fall:

(i) the taxation year to be specified under section 13 (2) (a) [base year];

(ii) the threshold to be specified under section 13 (2) (b) [land value ratio threshold];

(iii) the threshold to be specified under section 13 (2) (c) [base change threshold];

(iv) the percentage to be specified under section 13 (2) (d) [extent of exemption];

(b) modifying the dates specified in

(i) section 13 (5) (b) [exemption bylaw — adoption period],

(ii) section 16 (2) (a) or (b) or (7) [reported net taxable value],

(iii) section 17 (2) (b) [adjustments to report by collector], or

(iv) section 23 [modified dates for 2020 taxation year].

(3) Regulations under subsection (2) may be different for different municipalities.

(4) Without limiting subsection (3), regulations under subsection (2) (a) (iv) may be different for different areas, properties or kinds of property.

Transitional regulations

25   (1) The Lieutenant Governor in Council may make regulations considered necessary or advisable for the purpose of more effectively bringing this Division into operation and to avoid any transitional difficulties encountered in doing so.

(2) A regulation under subsection (1) may be made retroactive to the date this section comes into force or a later date and, if made retroactive, is deemed to have come into force on the date specified.

(3) If a regulation under subsection (1) conflicts with another enactment, the regulation prevails.

(4) This section and, unless earlier repealed, any regulations under this section are repealed one year after the date this section comes into force.

56   In this Part: