HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 — 2011

Definitions

1  In this Part:

"council" means the council of the municipality;

"exemption agreement" means an agreement under section 2 (7);

"exemption bylaw" means a bylaw under section 2 (4);

"exemption certificate" means a tax exemption certificate issued under section 2 (8);

"municipality" means the City of Richmond;

"school tax" has the same meaning as in section 1 (1) of the School Act;

"school tax exemption", in respect of a parcel of land, means the exemption from taxation under the School Act in respect of the parcel as provided for in section 6 of this Act.

Permissive tax exemption — City of Richmond

2  (1) The council may provide tax exemptions in relation to land in accordance with this section.

(2) The council may not provide a tax exemption under this section for a taxation year after 2016.

(3) For a tax exemption under this section to apply to a particular parcel of land for a taxation year,

(a) the land must

(i) be in that portion, designated by regulation, of the area known as the Richmond City Centre, as specified in the Richmond Official Community Plan Bylaw 7100 Amendment Bylaw 8383, Schedule 2.10 — City Centre Area Plan, adopted by the council on September 14, 2009,

(ii) be classified only as class 5 or 6 property under the Assessment Act for the purposes of taxation for the taxation year, and

(iii) have an assessed value on the revised assessment roll for the 2011 taxation year that has increased by an amount equal to or more than the greater of 100% or a prescribed percentage from the assessed value for that land on the revised assessment roll for the 2005 taxation year,

(b) the exemption must be in accordance with an exemption bylaw,

(c) an exemption agreement must apply to the parcel, and

(d) an exemption certificate for the parcel must have been issued under subsection (8).

(4) A tax exemption program must be established by a bylaw that includes the following:

(a) a description of the reasons for and objectives of the program;

(b) a description of how the program is intended to accomplish the objectives;

(c) a description of the kinds of land, or related activities or circumstances, that will be eligible for tax exemptions under the program;

(d) the extent of the tax exemptions available;

(e) the amounts of tax exemptions, expressed as a percentage of assessed value of land, that may be provided under the bylaw, by specifying percentages or by establishing formulas by which the percentages are to be determined, or both;

(f) the maximum term of a tax exemption that may be provided under the bylaw.

(5) An exemption bylaw

(a) may include other provisions the council considers advisable respecting the program, including, without limitation,

(i) the requirements that must be met before an exemption certificate may be issued,

(ii) conditions that must be included in an exemption certificate, and

(iii) provision for a recapture amount in respect of a taxation year that must be paid to the municipality if the conditions specified in the exemption certificate are not met or the exemption certificate is cancelled, and

(b) may be different for

(i) different classes of land, as established by the bylaw,

(ii) different activities and circumstances related to land or its uses, as established by the bylaw, and

(iii) different uses as established by a zoning bylaw.

(6) An exemption bylaw may be adopted only after

(a) notice of the proposed bylaw has been given in accordance with section 5 (2), and

(b) the council has considered the bylaw in conjunction with the objectives and policies set out under section 165 (3.1) (c) [use of permissive tax exemptions] of the Community Charter in its financial plan.

(7) The council may enter into an agreement with the owner of a parcel of land respecting

(a) the provision of a tax exemption under this section,

(b) any requirements that must be met before an exemption certificate is issued, and

(c) any conditions on which the tax exemption is to be provided.

(8) Once

(a) all requirements established in the exemption bylaw, and

(b) any additional requirements established in the exemption agreement

have been met, a tax exemption certificate must be issued for the parcel of land in accordance with the exemption agreement.

(9) An exemption certificate must specify the following in accordance with the exemption bylaw and the exemption agreement:

(a) the extent of the tax exemption;

(b) the amount of the tax exemption, expressed as a percentage of assessed value of the land, or the formula for determining the percentage;

(c) the term of the tax exemption;

(d) if applicable, the conditions on which the tax exemption is provided;

(e) if applicable, that a recapture amount is payable in respect of a taxation year if the conditions specified in the exemption certificate are not met or the exemption certificate is cancelled, and how that amount is to be determined.

(10) So long as an exemption certificate has not been cancelled, the land subject to the exemption certificate is exempt from taxation under section 197 (1) (a) [municipal property taxes] of the Community Charter as provided in the exemption certificate.

(11) The council may cancel an exemption certificate

(a) on the request of the owner of the land, or

(b) if any of the conditions specified in the exemption certificate are not met.

(12) An exemption certificate or cancellation does not apply to taxation in a taxation year unless the exemption certificate is issued or cancelled, as applicable, on or before October 31 in the preceding year.

(13) The designated municipal officer must

(a) provide to the relevant assessor a copy of an exemption certificate as soon as practicable after it is issued, and

(b) if applicable, notify that assessor as soon as practicable after an exemption certificate is cancelled.

(14) The authority to provide a tax exemption under this section is not subject to section 25 (1) [prohibition against assistance to business] of the Community Charter.

Requirement to issue exemption certificate
before October 31, 2011

3  Despite section 2, an exemption certificate may not be issued after October 31, 2011 unless at least one exemption certificate is issued on or before that date in respect of any parcel of land.

Notice to lessees

4  If an exemption certificate has been issued in respect of a parcel of land and the owner of the parcel has received an assessment notice for that parcel under the Assessment Act, the owner must promptly deliver a copy of the notice and of the exemption certificate to each lessee of any portion of the parcel.

Application of the Community Charter

5  (1) For the purposes of section 98 (2) (b) [annual municipal report] of the Community Charter, a tax exemption provided under section 2 of this Act is deemed to be a tax exemption provided under Division 7 [Permissive Tax Exemptions] of Part 7 [Municipal Revenue] of that Act.

(2) Section 227 [notice of permissive tax exemptions] of the Community Charter applies in relation to a proposed exemption bylaw as if the proposed exemption bylaw were a bylaw under section 226 (4) [revitalization program bylaw] of that Act.

School tax exemptions

6  (1) Land that is exempt from taxation under section 2 for a taxation year is, subject to this section and the regulations, exempt from taxation under the School Act for the taxation year as provided under subsection (2).

(2) In relation to the exemption under subsection (1), the percentage of the assessed value of the land that is exempt is the lesser of the following:

(a) 40% of the assessed value of the land;

(b) the percentage of the assessed value of the land that, under section 2 of this Act, is exempt from taxation under section 197 (1) (a) of the Community Charter.

(3) If a person must pay a recapture amount referred to in section 2 to the municipality in respect of a parcel of land for a taxation year, by the same time that the recapture amount is due, the person must pay to the government in respect of the school tax exemption for the parcel for the taxation year the amount determined by the following formula:

amount =		A		x [D – E]
		(B – C)

(4) The amount payable under subsection (3) and any interest, calculated at the rate and in the manner prescribed, on that amount is a debt due by the person to the government and the debt may be recovered by the government in any court of competent jurisdiction.

(5) If a person must pay a recapture amount referred to in section 2 to the municipality in respect of a parcel of land for a taxation year, the municipality must give notice to the minister charged with the administration of the Financial Administration Act as soon as practicable after the obligation to pay the recapture amount arises.

(6) Land that is exempt from taxation under section 2 for a taxation year is not, by reason of that exemption, exempt under

(a) section 131 (1) of the School Act, or

(b) any other enactment that applies section 131 (1) of the School Act.

Power to make regulations

7  (1) For the purposes of this Part, the Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) for the purposes of section 2 (3) (a) (i), designating a portion of the area referred to in that section;

(b) prescribing a percentage for the purposes of section 2 (3) (a) (iii);

(c) setting conditions or limitations on the provision of school tax exemptions;

(d) providing that land is not exempt under section 6 (1) in specified circumstances, which may be different for different classes of land defined by the regulation;

(e) providing that section 6 (1) does not apply in respect of a specified parcel of land or class of land defined by the regulation;

(f) providing that section 6 (1) does not apply to a taxation year;

(g) prescribing interest rates and the manner of calculating interest for the purposes of section 6 (4).

Commencement

8  This Part comes into force by regulation of the Lieutenant Governor in Council.