Port Metro Vancouver (PMV) is voicing strong support for the province’s move, announced during last week’s B.C. budget release, to make an existing rate cap on port property taxes permanent.
“These changes are essential in supporting the competitiveness of Port Metro Vancouver and our industry stakeholders,” said Robin Silvester, PMV president and CEO.
“As Canada’s largest port and gateway to Asia, we appreciate the important steps the province has taken to encourage port investments and create new jobs, while maintaining support for our municipal neighbours.”
The caps were introduced in 2004 on a temporary basis through the Ports Property Tax Act. According to the province, since that date B.C.’s private sector has announced, initiated or completed port investment projects worth more than $1 billion.
According to a press release from the province, the permanent rate cap will provide greater long-term cost certainty for investors and incentive for further investment.
The BC Wharf Operators Association has estimated that the change will stimulate more than $2 billion in future private sector investments in B.C. ports.
The province has stated that it will “compensate local governments for the resulting impact.” It said that municipal compensation payments are indexed to the rate of inflation.
When the province announced the measures last week, Anthony Perl, director of the Urban Studies Program at Simon Fraser University, voiced concern that the rate cap will push new costs onto municipalities.
The legislative changes are subject to approval of the legislature.
