Grants-in-lieu of property taxes are given in out as a way to pay municipalities back for services that benefited government properties. In the past, it was the practice that one level of government did not tax the property of another level of government. However, beginning in the 1960s, the province began to recognize its responsibility to compensate municipalities for local services that benefited these properties, such as roads, sewers, and fire protection.
The amount each community receives is based on the assessed value of the properties and the municipality’s tax rate. Each municipality sends a portion of its grant-in-lieu to its regional district, and those local governments use the money to help pay for local services. Fort St. John will be giving $11,048.45 to the Peace River Regional District.
In total, $16.9 million is being distributed to 64 B.C. communities.