The Assessment Act, Section 20.1 sets out special valuation rules for dams, power plants, and substations that are defined as:
"dam" means any structure designed and built to control or store water flowing in a water course for the purposes of, or for purposes ancillary to, generating electricity; "power plant" means any structure designed and built to
(a) contain boilers, turbines or compressors for the purposes of, or for purposes ancillary to, generating electricity, or
(b) support, contain or have affixed to it components that convert sunlight into electricity, either directly or indirectly, if the primary purpose of the structure is for use in the business of generating electricity;
"substation" means a facility at which electric current is switched, transformed or converted
(a) at a dam or a power plant,
(b) between a power plant and a transmission system, or
(c) between a transmission system and a distribution network.
The assessment of these properties reflect the land at actual or market value, as per Section 19 of the
Assessment Act, and improvement value determined in accordance with the Electrical Power Group Manuals that set out rates, formulas, rules, or principles for the calculation of cost.
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.
What determines the Property Class of Dams, Power Plants and Substations?
In BC, properties have a classification assigned to them based on their use. This property classification determines which property tax rates apply to that property.
Generally speaking, the property classification of dams, power plants and substations is Class 2 – utilities, as governed by
BC Reg. 438/81 Prescribed Classes of Property Regulation.
Where can I get further information?
Please direct all inquiries to: firstname.lastname@example.org
Additional information may be found on these pages: Assessment of Major Industrial and Electrical Properties: a change in business model,
Closure Allowances for Major Industrial and Electrical Properties,
Wind Power Facilities,
Solar Power Plants, and
School Tax Exemptions for Alternative Energy Power Projects.
Disclaimer: Where information presented is different from legislation, legislation shall prevail.