2016 managed forest update from bc assessment
TRANSCRIPT
2016 BC Assessment and Managed Forest Update
Presented by:
Craig BarnsleyManager, Major Industry & Regulated Rates
June 2, 2016
BC Assessment Overview
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History of BC Assessment
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Established in 1974 under the Assessment Authority Act in
response to the need for a fair, independent organization that
valued all property in the province.
A provincial Crown corporation, independent of taxing
authorities.
Our Company
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6 Geographic Regions
15 Field
Offices
Head Office in Victoria
650+ Full-Time Employee
s
> 340+ Appraiser
s
Our Product
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•Annual list of property values provides stable, predictable base for real property taxation in BC
•Represents nearly 2 million properties with total value of $1.3 trillion
•Identifies ownership, value, classification and exemptions for each property
•Provides stable base for local governments and taxing authorities to raise over $7 billion annually in property taxes for schools and important local services
The Assessme
nt Roll
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Assessments
Market Value • Residential• Industrial• Commercial• Institutional• Most Land Values
Assessments
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Legislated Values • Major Industrial• Electrical Power• Linear Improvements• Statutory Land• Farm Land• Managed Forest Land• Designated Ski Hills
Property Class
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BC Assessment Key Dates
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December 31 Rolls and totals produced; Notices mailedJanuary 1 to 31 Inquiry Period – Contact Us First
January 31 Property Assessment Review PanelDeadline to request a review
February 1 to March 15 Property Assessment Review Panel (PARP)Review hearings held
April 30 Property Assessment Appeal Board (PAAB)Deadline to request a review
July 1 Valuation DateOctober 31 Physical Condition & Permitted Use Date
November 30 Land Titles OwnershipDecember 31 Liability for Taxation
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2016 Property Assessment Appeal OverviewYear Total
Inquiries (all types)
2016 47,8302015 43,0902014 36,4002013 37,8952012 39,0842011 42,5622010 37,1302009 30,2442008 48,3732007 45,2312006 45,3402005 80,5862004 68,1232003 59,6652002 52,4342001 52,319
2010 2011 2012 2013 2014 2015 20160
5,000
10,000
15,000
20,000
25,000
30,000
35,000
27,59831,296
23,438 23,847
17,874
22,296 23,354
Number of Folios Appealed to PARP
2016 Roll = 1.17% appealed to PARP
Managed Forest Update
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2016 Managed Forest Facts
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• 330+ Managed Forests• Number of related folios 4,100+ • Total area covered 836,000 hectares • Total assessed value +$1.15 billion
Managed Forest Valuation Area Re-Alignment
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• In 2016, Provincial Government directed the re-alignment of managed forest valuation areas with the new natural resource sector boundaries created by the Ministry of Forests, Lands and Natural Resource Operations.
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Managed Forest LandManaged Forest Land is privately owned land on which the owners have made a commitment to grow and harvest timber in a manner that promotes the public interest.It includes land used for the production and harvesting of timber that is managed under:• The Private Managed Forest Land Act
and the regulations under that ActOR
• The Forest and Range Practices Actand the regulations under that Act
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Managed Forest Class – Application Process1. Application under the Private Managed Forest Land Act and Regs :
• Application is made to the Managed Forest Council
• Applicant must file a Management Commitment that signifies their commitment to use the property for the production and harvesting of timber and associated forest management activities
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Managed Forest Class – Application Process
• The Managed Forest Council (MFC) reviews the management commitment to ensure that it complies with the requirements of the Private Managed Forest Land Act and regulations
• If the requirements are met, the MFC sends the applicant a letter to advise that the management commitment has been accepted and forwarded to BC Assessment.
• BC Assessment determines whether the property qualifies as managed forest land under the Assessment Act and regulations
• BC Assessment contacts the applicant to advise of the decision
1. Application under the Private Managed Forest Land Act :
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• Private managed forest land that is in a tree farm license area, woodlot license area, or community forest agreement area
• Applicant must have an approved management plan under the Forest Act
• Owner then makes application directly to BC Assessment• BC Assessment determines whether the property qualifies as
managed forest land under the Assessment Act and regulations• BC Assessment contacts the applicant to advise of the decision
2. Application under the Forest and Range Practices Act:
Managed Forest Class – Application Process
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Managed Forest Class – BCA RequirementsUnder the Assessment Act and regulations, to qualify as Managed Forest the land must meet minimum size and productivity requirements:• Minimum size is 25 hectares• May consist of more than one parcel
provided the parcels are contiguous• If the land is 50 hectares or less, at
least 70% of the land must be productive
• If the land is more than 50 hectares, at least 50% of the land must be productive
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Managed Forest Land – Assessed ValueLand that meets the requirements of Managed Forest class is valued using Regulated Rates.
Assessed Land Value = Bare Land Value + Cut Timber Rates are developed annually in accordance with the
Managed Forest Land And Cut Timber Values Regulation (B.C. Reg. 90/2000)
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Managed Forest Land – Bare Land RatesBare Land Value represents the value the land has for the purpose of growing and harvesting trees:• It does not include the value of the trees on the property• 360 Bare Land Rates • Bare Land Rates applied to managed forest land is
dependent on:- location B.C. Reg. 90/2000
- accessibility- topography- soil capability of the land
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Bare Land Rates SampleManaged Forest Land And Cut Timber Values Regulation
(B.C. Reg. 90/2000)
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Managed Forest – Cut Timber RatesThe value of trees harvested in any year is added two years later to the property’s assessed land value.• For example, the value of cut timber harvested in 2015 will be
included in the 2017 assessed value• Cut timber rates reflect the location of the species and grade of the
trees cut, as well as their accessibility• This information is obtained from the owner through an annual
request for timber harvesting data
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Managed Forest – Cut Timber Rates• Greater than 1,400 Cut Timber Rates• Cut Timber Rate applied to managed forest land is dependent on:
– the valuation area– the species of tree cut– the grade of tree cut– the accessibility of the land from
which the trees are harvested• Cut Timber Rates are determined in
two separate manners:– one for coastal cut timber – one for interior cut timber
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Managed Forest – Coastal Cut Timber• Coastal Cut Timber is:
– based on prices from the domestic Vancouver log market– based on the average price per cubic metre by species and letter grade
over the past 12 months– adjusted by average costs for hauling, sorting and booming in Howe
Sound
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Coastal Cut Timber Rate SampleManaged Forest Land And Cut Timber Values Regulation
(B.C. Reg. 90/2000)
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Managed Forest – Interior Cut Timber Rates• Interior Cut Timber rates are determined with the following inputs:
– lumber selling prices– lumber recovery factors– chip selling prices– milling costs– access
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Interior Cut Timber Rate SampleManaged Forest Land And Cut Timber Values Regulation
(B.C. Reg. 90/2000)
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2017 Roll – Managed Forest Valuation ReviewProgress:• Feb 2016 – Roundtable consultation comprising BCA, MFC, PFLA, FLNRO
and industry representatives.• Apr 2016 – Forestry consultant selected to facilitate review• May 2016 – Initial meeting between BCA and FLNRO
Next steps:• Work with consultant in reviewing current processes and inputs• Review and analyze recommendations• Present recommendations to Industry• Revise with industry as required• Present results to BCA BoD for approval and implementation - Sept
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Questions?