About Major Industry Property (MIP) Classification in British Columbia

Major industry property includes land and improvements (buildings and structures) of prescribed types of industrial plants. In the Assessment Act, the Prescribed Classes of Property Regulation, B.C. Reg. 438/81, Class 4 - Major Industry is described as:

Class 4 property shall include only the property referred to in section 20 (3) of the Assessment Act, that is to say,

(a) land used in conjunction with the operation of industrial improvements, and

(b) industrial improvements.

What is an “industrial improvement”?

The Assessment Act, Section 20 defines industrial improvements as: “…an improvement that is part of a plant, whether or not the plant can be operated as a going concern or is temporarily or permanently unprofitable, if the plant is designed and built for the purpose of one or more of the following:

(a)   mining, extracting, beneficiating or milling of metallic or non-metallic ore;
(b)   mining, breaking, washing, grading or beneficiating of coal;
(c)   producing of aluminum;
(d)   smelting or refining of metal from ore or ore concentrate;
(e)   producing, manufacturing, processing or refining of petroleum or natural gas;
(f)    manufacturing of lumber or other sawmill and planing mill products;
(g)   manufacturing of wood veneer, plywood, particle board, wafer board, hardboard and similar products;
(h)   manufacturing of gypsum board;
(i)    manufacturing of pulp, paper or linerboard;
(j)    manufacturing of chemicals;
(k)   manufacturing of chemical fertilizer;
(l)    manufacturing of synthetic resins or the compounding of synthetic resins into moulding compounds;
(m) manufacturing of cement;
(n)   manufacturing of insulation;
(o)   manufacturing sheet glass or glass bottles;
(p)   building, refitting or repairing ships;(q)   loading cargo onto sea going ships or barges, and associated cargo storage and loading facilities, including grain elevators”.

Are there any exemptions from Class 4?

The Assessment Act Exemption from Industrial Improvement Regulation, B.C. Reg. 97/88 exempts from the definition of industrial improvements certain types of plants that have less than specified capacities:

How are Class 4 assessments determined?

The assessment of these properties reflect the land at actual or market value, as per Section 19 or 20.3 of the Assessment Act, and improvement value determined in accordance with the Major Industrial Properties Cost Manual that sets out rates, formulas, rules, or principles for the calculation of the cost of replacing an existing industrial improvement.

Depreciation rates and principles for the application of depreciation are prescribed by BC Reg. 53/2016 Depreciation of Industrial and Electrical Power Generating Facility Improvements Regulation.

Where can I get further information?

Please direct all inquiries to: majorindustry@bcassessment.ca

Additional information may be found on these pages: Classification of Major Industrial Properties, Assessment of Major Industrial and Electrical Properties: a change in business model, and Closure Allowances for Major Industrial and Electrical Properties.

Updated 01/2022

Disclaimer: Where information presented is different from legislation, legislation shall prevail.

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Assessment of Major Industrial and Electrical Properties

Assessment of Properties with Dams, Power Plants and Substations in British Columbia

Closure Allowances for Major Industrial and Electrical Properties

Major Industry Property (MIP) Classification in British Columbia

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