Thompson-Nicola regional district estimates $1.3M budget shortfall after pipeline tax cut

The Thompson-Nicola regional district is estimating it will lose out on $1.6 million in tax funding when the province cuts its assessed values to pipelines.

BC Assessment has been working on changes to how it evaluates pipelines for years and recently briefed local governments on the upcoming changes. The regional district has pushed back on the move, decrying a lack of consultation and short-notice warning.

Though the changes haven’t been approved by the BC finance ministry, regional district staff estimate the change would require $1.3 million to be made up by area property owners. The board sent a second letter to the province this week asking changes to be postponed.

“The abrupt notice provided by BC Assessment for changes of this magnitude is not sufficient for local governments to reasonably adjust their budgets and ease the anticipated tax burden that this now creates for residents and businesses,” regional district board chair Barbara Roden said in a news release.

According to the regional district, the combined $1.3 million “unfairly” shifts 3.3 per cent of its overall budget to homeowners and businesses, along with 1.7% of the Thompson Regional Hospital District budget.

Local governments are limited to how much they can tax utility properties, like pipelines. If BC Assessment devalues them, their overall tax bill will drop. It would be the first time BC Assessment has done so for pipelines since 1986, according to the regional district.

Meanwhile, BC Assessment is looking at another substantial change which won’t come until next year at least. It’s expected to bring railway properties into the local government tax regime.

The regional district has asked the BC finance ministry to postpone any changes to pipeline values so it can be done at the same time as the impending addition of railway properties.