Port-Related Local Government Revenue & Property Taxes


Port-Related Local Government Revenue
& Property Taxes

As a Canadian Port Authority, the Prince Rupert Port Authority must reinvest all profit into building a stronger more viable port, for both the community of Prince Rupert and all of Canada.

It has delivered on this promise through dramatically increasing the tax revenue it generates for all levels of government, driving the creation of thousands of new full time jobs in northwest BC, and increasing contributions to community initiatives that make a difference throughout Prince Rupert and northwest B.C.


Municipal Taxes from Major Industry in Prince Rupert

The City of Prince Rupert receives an increasing percentage of its tax revenues from major industry, primarily driven by the Port of Prince Rupert and its partners, that comprised 39% of the City’s net tax revenue in 2023. That number is expected to grow even further with the introduction of uncapped emerging port initiatives such as CANXPORT and the Ridley Island Energy Export Facility (REEF).

More information on City tax revenue sources can be found in its annual report and financial statements.

* Taxes paid reflect only “General Municipal” taxes, not other property tax components such as School District, Regional District, or others.

* * Major Industry includes non-PRPA lands, but does not include PILTs, BC Ports Competitiveness Grant to City of Prince Rupert, or
Ridley Island taxes shared with District of Port Edward

* * * 2028 assumes a conservative $6 million annual municipal tax increase to the City of Prince Rupert from CANXPORT, REEF, and the South Kaien Import Logistics Project coming online in 2027, and no new revenue increase from other classes.


How has municipal government revenue from Port properties changed over time?


What is the BC Ports Property Tax Act?

BC’s Ports Property Tax Act (the ‘Act’) was introduced in 2004 to regulate the amount of property taxes payable on port terminals. The Act was made permanent legislation in 2014.

The objective of the Act is to provide stability and predictability to the taxation environment of port terminals within the province to attract investment and position BC as a competitive global trade gateway, especially as it relates to US-based West Coast ports. In general terms, the Act places limitations on local government port property taxation while compensating municipalities for potential lost revenue through a provincial grant mechanism.

Under the Act, there are two values used to regulate the maximum allowable amount of taxes payable. They are land value, as calculated through an increase against the Consumer Price Index on a base year of 2007, and a cap to the mill rate of $27.50 per $1,000 of assessed value. This rate is significantly higher than residential rates.

Learn more about the BC Ports Property Tax Act.


What are the ways that a municipal government collects revenue from port properties?

Four primary tax sources provide municipalities tax revenue from properties within PRPA jurisdiction:

  1. Property taxes from PRPA tenants: After PRPA has leased property to a third-party, it is subject to regular valuation by BC Assessment, taxes are paid by those tenants based on the municipal mill rate – a multiplier of the assessed value of the property by the tax rate that is expressed as dollars of tax per $1,000 of assessed value. Examples of such properties in Prince Rupert include the Ridley Island Propane Export Terminal, logistics and warehousing operations, administrative and inspection services, retail and office operations, and other port-related service activities.  
  2. Property taxes from PRPA tenants that are eligible under the BC Port Property Tax Act and its associated property tax caps: After PRPA has leased property to a third-party, it is subject to regular valuation by BC Assessment. If it is a marine terminal as defined in the BC Ports Property Tax Act, taxes are paid by those tenants based on maximum limits set by the Act for municipal mill rates. The eligible Prince Rupert terminals are Fairview Container Terminal, Prince Rupert Grain Terminal, Trigon Terminals, and Westview Wood Pellet Terminal. Read more about the BC Port Property Tax Act below.
  3. BC’s Port Competitiveness Tax Grant: In order to compensate for the establishment of the port property tax caps noted above, the BC Government provides a grant annually to affected municipal governments. This grant increases every year to reflect inflation, but not changes in tax assessment. In the case of Prince Rupert, this grant does not cover the full gap between tax cap rates and current City mill rates for major industry. In 2021, the gap was roughly $1.6 million.
  4. Payments In Lieu of Taxes (PILT): Port authorities administer federal Crown land that is restricted to development related to supporting the growth of Canadian trade. Unleased federal crown land in Canada is NOT subject to municipal property tax, nor is it subject to the BC Ports Property Tax Act. Instead, the port authority provides payments directly to the municipal government as an equal replacement for property taxes. The amount of the payment is determined by a combination of a market appraisal of the property value and the classification of the property type and how the corresponding municipal tax rate applies. In Prince Rupert, this is primarily vacant industrial land that has not been leased by PRPA to a third-party, but also includes PRPA-owned and operated assets. Read more about the federal Payments in Lieu of Taxes program here.

How does municipal revenue collected from port properties compare to other property classes like residential and commercial?

More information on how municipal government tax revenues compare between property classes and sources can be found in publicly available audited financial statements the City of Prince Rupert and the District of Port Edward.

More information on how local municipal government property tax revenues and tax burdens compare with other BC municipalities can be found in public information provided by the BC Government.