City of Powell River has received nearly $48,000 from the Province of BC for grants-in-lieu of municipal property taxes.
In a response to an enquiry from the Peak, city chief financial officer Adam Langenmaier said the grants-in-lieu for the city are treated the same way municipal property taxes are treated and flow into general revenue to support city services.
“The city does not separate grants-in-lieu payments for specific expenses,” said Langenmaier. “Grants-in-lieu are the governments’ [provincial and federal] method of paying property taxes as property owned by provincial and federal governments are exempt from municipal taxation.”
Each November, the province pays grants-in-lieu of property taxes to municipalities and regional districts for services they provide in their communities, such as parks, sewers, roads, fire protection and other infrastructure projects, according to a media release from the province. The grants are for properties owned by the provincial government, such as office buildings, warehouses and courthouses.
Municipalities use these grants to fund and maintain priority public services and local infrastructure projects, according to the release.
