A push by the District of Houston council to limit the impact on tax revenues from the closure of major industries has received support from local governments across the north.
As provincial legislation stands now, a large company can apply to reduce the assessed value of improvements or facilities on property it owns down to 10 per cent when it closes the facility.
The Houston council wants to change that and submitted a resolution to the annual convention of the North Central Local Government Association two weeks ago in Dawson Creek.
The resolution was passed unanimously and will now be considered by all local governments in B.C. this fall when the Union of B.C. Municipalities has its own annual convention.
“There was quite a bit of support,” said District of Houston mayor Shane Brienen of the resolution.
“A lot of the people were quite familiar with our situation and there was really very little debate.”
Although the District’s resolution did not mention Canfor by name, the closure as of last month of its mill would have a substantial impact on the heavy industrial portion of the District’s tax base.
That’s because municipalities collect tax revenues based on assessed values of buildings, improvements and land.
“Municipalities face significant economic and financial and taxation challenges when major industrial and electrical proponents cease operations in their communities,” the District stated in the resolution.
The resolution does not oppose a reduction in assessments but says the lower value should be less than what is permitted now.
The District’s tax revenues this year won’t be put in jeopardy by the Canfor closure. That’s because its sawmill’s assessed value for this tax year was set last year.
Financial information prepared for the 2023 tax year indicates Canfor is expected to pay $1.687 million. It is by far the largest single contributor to the District of Houston’s tax revenues which are estimated to be $4.725 million this year.
For its part, Canfor says that while it is closing its sawmill, it does want to build a new one, but won’t be making that decision until June.
Constructing a new mill would take at least two years and Canfor says there would not be any tax revenue disruption during that period.
Also passed was a District of Houston resolution pressuring the provincial government to increase training and support for public health care officials in rural and northern B.C.
“We’re hearing that subdivisions and other developments are being held up because there’s a shortage of health officers,” said Brienen. “So we really need more of them if we are to grow.”