City loses out on Canfor taxes

It was a eye-opener for the Canadian Taxpayers Federation.

“I was surprised to hear about these very, very generous assessment decreases when major enterprises like mills go out of business,” says Carson Binda. “But I was even more surprised to find out that this isn’t just the thing in BC there’s very, very similar regulations across many Canadian provinces and indeed US states.”

In the case of the City of Prince George, that translates into a million-dollar hit with the loss of PG Pulp.

The City was a partner to a resolution to the most recently North Central Local Government Association AGM, alongside the Village of Fraser lake and the regional district of Bulkley-Nachako.

It reads:

WHEREAS Section 9 of the Depreciation of Industrial and Electrical Power Generating Facility Improvements Regulation (the Regulation) significantly reduces municipal property tax revenues at a time when communities are already experiencing substantial job losses, and further impedes the ability of municipalities to build reserves for the reclamation of abandoned industrial sites that lack regulatory requirements for dedicated reclamation funds; and

WHEREAS the Regulation can create incentives for industrial proponents to shut down operations earlier resulting in premature job losses and reduced government revenues; the Regulation limits opportunities for new investors to acquire and redevelop industrial sites; the Regulation provides exclusive subsidies to the natural resource sector that hinder economic diversification; and the Regulation shifts financial risk from investors to municipalities while subsidizing failing or failed enterprises;

THEREFORE BE IT RESOLVED that NCLGA and UBCM urge the provincial government, through the Ministry of Finance, to repeal and replace Section 9 of the Depreciation of Industrial and Electrical Power Generating Facility Improvements Regulation with provisions that support a clear and intentional strategy to provide more stable local economies, government revenues, revenues for reclamation of abandoned industrial sites, diversified economies, and sustainable economic growth.

“It was probably generated in response to a crisis, and then when the crisis passed, it just was never reduced,” says Frizzell. “So, we’re bringing their attention to it and it was great. Kudos to Houston Chamber and the Prince George Chamber for bringing it forward. One of the vehicles we have is NCLGA and UBCM, and that gets the attention of Cabinet.”

The Union of BC Municipalities convention – where the resolutions heads next – takes place in September.

Pattison Media is owned by Jim Pattison Industries a majority shareholder in Canfor.

by Cheryl Jahn

City loses out on Canfor taxes

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