Province shines on Nelson for taxes in lieu
By Nelson Daily Staff
Nelson was the biggest winner in the grants in lieu of property taxes sweepstakes as the Ministry of Citizens’ Services announced its annual dole to 63 BC communities Tuesday.
The Heritage City received the largest grant in lieu of any Kootenay community, and sat 14th out of the 63 in the province with a total of $194,548 coming into the City coffers from the Province of BC.
The City received such a large sum because of the purchase of the former Provincial government building — that now houses City Hall — several years ago, with the taxes in lieu now comprising more “rent” than a grant.
Before the 1960s, it was practice that one level of government did not tax the property of another level of government.
However, in 1963, the Province of BC began to recognize its responsibility to compensate municipalities for local services that benefited these properties, such as roads, sewers and fire protection.
Grants-in-lieu of property taxes are distributed as a way to compensate municipalities for services that benefited government properties.
The grants are based on the assessed value of provincially-owned office buildings and other properties in each municipality.
To save time, money and paper, the funds are distributed electronically.
Since 2002, the Government of British Columbia has distributed more than $156 million as grants in lieu to BC municipalities.
Each municipality sends a portion of the funds to its regional district, and those local governments use the money to help pay for local services.
Also on the list were: Castlegar, 21,737; Cranbrook, 28,224; Creston; 13,726; Fernie, 2,774; Golden, 4,134; Nakusp, 6,054; Revelstoke, 25,524; and Rossland, 13,002.
