While Squamish homeowners may wince at the jump in their property tax bill when it arrives in the mail, it pales in comparison with the close to 50 per cent jump the Squamish Terminals will see.
Officials at the Squamish Terminals had requested a break in their provincially -capped municipal property taxes this year, which were set to jump 61 per cent over last year due in large part to its new $30 million dock that replaced the one burned in the April 2015 fire.
Due to the port’s improvements, its BC Assessment in 2017, was $23.6 million up from $14 million in 2016. In other words the assessment increased a whopping 68 per cent.
Stegeman-Lowe, president of Squamish Terminals, has argued that the improvement merely returned the port to its pre-fire status.
She also argues that the terminal continued to operate at near full capacity while the east dock was being rebuilt, which benefited Squamish’s economy.
“Squamish Terminals had two options when its dock was destroyed in the April 16, 2015 fire. We could have curtailed our operations to facilitate having only one dock,” said Stegeman-Lowe in a recent letter to council. “Instead, Squamish Terminals spent a very large sum of money to restore the terminal’s capacity and maintain [the port’s] level of contribution to the Squamish economy.”
Council settled on a 49.71 per cent increase over last year for the port, meaning the terminal will pay $576,577 in property taxes this year. Mayor Patricia Heintzman said council recognizes the port is in a tough spot due to their increase and that it didn’t get the cut in municipal taxes they wanted.
“It is an unprecedented occurrence that caused this situation,” Heintzman said.
“At the same time, any business that does a major improvement or any home that does any major improvement has to pay for it…. We can’t legally show preference to a business under the legislation.”
Council tried to find a middle ground and settled on the B.C. average for ports that gave Squamish Terminals a small break on their taxes, Heintzman added.
Stegeman-Lowe was diplomatic in her response to the increase, acknowledging, “council faces a difficult challenge balancing various community interests when assessing municipal taxes.”
“Squamish Terminals is appreciative of council’s time and ability to provide a form of interim property tax relief, which is designed to help offset the tax inequity we face and in recognition of the Terminal being a major contributor to the community,” Stegeman-Lowe told The Chief.
The municipal tax relief is temporary while the port works with higher levels of government to establish tax equity with competitor ports in B.C., according to District staff.
The terminal is currently in discussions with the provincial government on a permanent solution to what the terminal describes as tax inequity, when compared to their competitors in the Lower Mainland.
This solution would be in the form of legislative amendments by the provincial government allowing for berth corridor improvement exemptions, Stegeman-Lowe explained.
