FORT ST. JOHN, B.C. – Scott Sitter, Assessor of the Northern B.C. Region for BC Assessment made a presentation on the Basics of Assessment to Council.
In the presentation Sitter explained the formula in which BC Assessment formulates their values they use in assessments of properties.
In 1974 British Columbia became a Crown Corporation in which changes were made that distributed the tax base fairly. In B.C., assessment and taxing are run by different departments. Sitter shared, the B.C. assessment and tax system rank top 6 worldwide.
Sitter spoke to Council at the end of the presentation in regards to the OSB Plant. He shared when BC Assessment gets notification of potential for a major industrial property to curtail its operations or go into closure, BC Assessment provides the best estimate at the time.
In terms, if the OSB Plant is going to be down permanently the assessment on their building will drop to a 90 percent depreciation rate. Dependent on their current assessment will drop to 10 percent of the replacement value.
The land will stay the same, the classification stays the same unless they start removing equipment then the classification changes and the method of evaluation changes. Sitter shares, once you change it from a major industrial property, now you’re into regular property classes.
He goes on to share it is a huge building designed for a specific industrial purpose and who is going to buy the building for that purpose, yet more than likely an alternative purpose.
Sitter shares he has not seen a reaction in the markets yet so he does not know how the markets will react with the plant’s closure yet as soon as BC Assessment knows they will keep close contact with the municipality.