Tax exemption - amenity lot contribution

Hi All,

Wondering if anyone has developed a mechanism for dealing with the exemption issues related to land amenity contributions.

When the municipality receives an amenity contribution in the form of land, the property often comes through as taxable. For instance, if we received a piece of land from a developer in February 2018, it would remain taxable. BC Assessment looks at Dec 31, 2017 as the ownership date to determine exempt status. They also will not issue a supp adjustments part way through the year to exempt the property all or in part. I don't think they have the legislative authority to do so.

So is there any practical way to indemnify the muni against the tax liability? We can't exempt the lot by permissive tax exemption bylaw and it is doubtful that the developers would be willing to pay the full tax liability since they will not have owned the land for the whole year. I don't think it would qualify for a n LGA 315.3 write off. So essentially the muni will be liable for the municipal and school taxes (among others).

Looking for any ingenious ideas. [email protected]

Christopher

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