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Kamloops area officials lobbied for weeks after they learned of an approaching dip in pipeline taxes, and the province turned to instead increase what companies will pay.
The now-abandoned change would have seen assessed pipeline values drop by up to 30 per cent, taking $1.3 million from the Thompson-Nicola Regional District budget, according to a news release.
BC Assessment proposed its plan after a lengthy review with pipeline companies, but decided against the change after local government pushback and discussions with the BC finance ministry.
“The (regional district) was one of the first local governments to realize the implications of the proposed changes, and has been leading the way in advocating for these changes to be postponed. We are grateful that our suggestions have been listened to, and thank BC Assessment and the Province of BC for this decision,” regional district board chair Barbara Roden said in a news release.
Instead of dropping the values as previously planned, BC Assessment will increase pipeline tax values by seven per cent within the Thompson-Nicola region, according to the regional district.
Finance Minister Brenda Bailey said she spoke with BC Assessment after hearing from local governments, adding that it was a BC Assessment decision not to follow through.
“I know communities have been worried about the proposed changes on pipeline valuations from BC Assessment. Any risk of a big tax burden shifting to residents and small businesses is something I take seriously,” she said in a written statement.
She did not answer when asked whether BC Assessment might reconsider its plans to reduce pipeline values in 2027.
Pipelines aren’t the only major industrial properties seeing changes under provincial tax policies. BC Assessment is planning to increase taxes for railway properties, too.
Regional district directors had also lobbied to at least postpone the decision until railway properties are reassessed, expecting a smaller impact on homeowners and businesses if done at the same time.
It’s not clear when railway taxes might change or if the pipeline changes will be considered in the future.
BC Assessment did not respond to an inquiry about the decision.
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