Recent Additional School Tax Decision Has Implications For B.C.'s Development Firms And Landowners

A recent decision by British Columbia's Property Assessment Appeal Board (the "Board") on the application of the additional school tax (the "AST") may have implications for landowners and property development firms in the Province.

The decision arose from a dispute filed by Musqueam Indian Band ("Musqueam") in connection with its lel?m? masterplanned community development (the "Development"), a multi-phase mixed use project within the University Endowment Lands which, when completed, will provide 1,200 housing units, including rental and affordable housing, as well as retail space, a community centre and a daycare. Musqueam already paid regular property taxes, but disputed the AST payable in respect of the Development, which would have resulted in an additional $2.2 million in taxes. The AST, which applied starting in 2019, is a surcharge on residential properties valued at more than $3 million.