Grants for municipal services to government buildings

Municipalities receive $15.9 million in lieu of taxes.

The Province, through the Ministry of Citizens’ Services, is providing $15.9 million to 63 B.C. municipalities as grants-in-lieu of property taxes for 2009, announced Minister Ben Stewart.

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.

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. Funds are distributed electronically, saving time, money and paper.

Since 2002, the Government of British Columbia has distributed more than $140 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.

Victoria
November 17, 2009
Ministry of Citizens’ Services
2009CITZ0009-000631