Two East Kootenay communities, along with 62 others province-wide, are receiving bits and parts of an almost $17 million government payback for being spared municipal property taxes.

The City of Cranbrook is getting $28,495.95 and the City of Fernie $3,027.01 from the Ministry of Labour, Citizens’ Services and Open Government, for grants-in-lieu of property taxes.

“I have no doubt that this money will be welcomed by both Cranbrook and Fernie. These are tough times for individuals and no easier for governments. I know these hard working local government folks will use the money wisely to benefit their respective east Kootenay communities,” stated East Kootenay MLA Bill Bennett.

“Grants-in-lieu of property taxes are distributed as a way to reimburse municipalities for services that benefited government properties, such as sewers, roads and fire protection. The amounts paid are based on the assessed value of the properties and the municipality’s tax rate,” a government press release explained.

“In accordance with the Municipal Aid Act, a grant-in-lieu is payable on land owned by the provincial government, such as courthouses, provincial government office buildings, ambulance stations and warehouses. It is not provided for highways, forests, parks or land under the control, management or administration of a Crown corporation. Schools and hospitals are also exempt from paying municipal property taxes and will not receive a grant-in-lieu.”

Since 2002, the Government of British Columbia has distributed more than $173 million as grants-in-lieu to B.C. municipalities. Each municipality distributes a portion of the funds to its regional district, and those governments use the money to help pay for local services.

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