Understanding Fair Share

Fair Share Is Not  Fair Share is not a revenue sharing agreement  Fair share is not a local government transfer grant

Fair Share Is A “Regional Property Tax Pool” An industrial development tax sharing program An agreement between the Province and the eight Peace region local governments The MOU recognizes $3.3 billion in industrial assessment not contributing to municipal government services Unique to the BC Peace region

The Fair Share MOU explicitly recognizes: 1.the unique situation in the Peace with massive amounts of industrial activity outside of municipal taxing authorities; 2.that municipalities are service centers to industry and it’s workers placing demands on municipal services and infrastructure; 3.that the objective of the Fair Share program is to achieve a reasonable degree of comparability with revenues from property classes 2, 4 & 5 (Industrial Tax Revenue) as available in other industrial municipalities across BC.

1.The BC Peace Region is one of the richest industrial regions in BC 2.The majority of the industrial workforce resides within municipalities 3.Most of the industrial tax base lies outside of municipalities 4.The majority of the industrial tax base elsewhere in BC is incorporated within municipalities 5.Residential taxes are higher in some municipalities because of poor access to industrial tax base 6.Industrial tax rates for rural industries are lower than those within municipal boundaries 7.Access to the industrial tax base is inequitable

Fair Share MOU 1, 2 & 3 Fair Share 1 was a 5 year agreement 1994 – 1999 and was worth $4M per year Fair Share 2 was a 10 year agreement, , worth $12M per year Fair Share 3 is a 15 year agreement, 2005 – 2020, worth $20M per year plus and indexed +/- to industrial growth.

FAIRSHARE RESULTS $4 Million $12 Million $20 Million Indexed to Growth of Tax Base Fair Share 1Fair Share 2 Fair Share 3 $2 Million Annual Tax on Industrial Classes 2,4,5 Grant Total Fair Share 1 $16 million Grant Total Fair Share 2 $83.5 million Grant Total Fair Share 3 $515 million Grant Total Fair Share 3 (to 2009) $121 million Annual Fair Share Grants Fair Share 3 To Date $75 Million $64 million at 8% annual growth rate $29 Million $52 Million

The Fair Share funding distribution formula considers: Municipal population Equalized per capita taxation Municipal industrial tax assessment (classes 2, 4 & 5) Current municipal industrial tax agreements – BC Hydro Grant in Lieu – Local Service Area benefits Chetwynd Rec Facilities NP Leisure Pool SP Multiplex – Taylor/FSJ Revenue Sharing – DC/Chetwynd Revenue Sharing – DC Sub Regional Rec Unincorporated industrial tax assessment (classes 2, 4 & 5) Class 2 = UtilityClass 4 = Heavy Industrial Class 5 = Light Industrial

The Peace River Regional District does not qualify for Fair Share because it has access to both incorporated and unincorporated industrial assessment. As an example the South Peace Multiplex capital construction service area.

In Summary The Peace River region of northeast BC is as unique as our Fair Share is. Fair Share is a Tax Sharing program that works! Fair Share has been a huge benefit to all residence of the Peace region. Questions?