Agreement solves dispute about terminals

A revised formula for valuing ferry terminals in the province leaves local governments with less tax revenue for the next five years.

BC Assessment and BC Ferries have agreed to new rules, after Bill Bennett, minister of community, sport and cultural development, asked them to enter into discussions and agree on a fair assessment level.

The BC Property Assessment Appeal Board recently ruled the value of the Horseshoe Bay ferry terminal was only $20, down from $47 million. The decision would have meant West Vancouver would collect no tax from BC Ferries in future years. It would also have been required to repay property tax revenues collected for the past three years, amounting to about $750,000.

The new ferry terminal assessment method reduces ferry terminal property values between 12 and 22 per cent.

In the City of Powell River, the value of the Westview terminal drops from a taxable value in 2013 of $1,115,000 to $870,000. The 22 per cent reduction translates into a $4,855 municipal tax reduction.

Mayor Dave Formosa said he was glad the issue has been worked out. “They worked it out in good time,” he said. “It didn’t drag on forever.”

The 22 per cent reduction on the value of the Westview terminal could have been a lot worse, Formosa also said, “if BC Ferries got anything close to what they were looking for. I would imagine that both parties put their heads together and this was a compromise they came up with.”

Formosa added that he was happy that the agreement is reasonable and the city will still see some good revenues from the terminal. “To have received nothing, the way they were proposing, would have been a lot worse than the $4,800 amount that we’re going to see,” he said. “All in all, I’m pleased that it was dealt with swiftly and that both parties came up with something everybody can live with.”

BC Ferries is withdrawing all unresolved 2010, 2011 and 2012 property assessment appeals. BC Assessment will apply the same methodology to the 2013 revised roll for all of the other 48 BC Ferries terminals located throughout BC.

The Saltery Bay terminal was included on a list of properties BC Ferries was appealing. BC’s ministry of finance collects taxes on rural properties and the tax implications to the Powell River Regional District won’t be known until after the province tables its 2013 budget.