Leases, Permits and Other Tenures

Transcription

1 Leases, Permits and Other Tenures Last Document Review Date: September 26, 2014 Last Legal Review Date: December 15, 2016 TABLE OF CONTENTS Introduction... 3 Executive Summary... 3 Resources... 4 Forms and Letters... 4 Legislation... 4 Compliance Checklist... 5 Crown Leases... 6 Lease... 6 Licence of Occupation... 6 Temporary Use Permit... 7 Investigative Permit... 7 Map Reserve... 8 Notation of Interest... 8 Controlled Recreation Area Utility Leases Practices and Procedures For New Communication Sites Port Metro Vancouver Practices and Procedures General Port Authority Leases Existing Folios Changes in Effect for Partial Year Changes in Effect for the Entire Year Oil and Gas Leases Practices and Procedures Assessment Practices and Procedures Leases, Permits and Other Tenures 1

2 Petroleum Leases on Fee Simple Land Municipal and Regional District Leases Municipalities Regional Districts Health Authority Leases Rail Leases Federal (National Park) Leases MIP and EPG Tenures Practices and Procedures Procedures General Renewal of a Lease, Permit or Other Tenure Adding a New Lease, Permit or Other Tenure Expired or Cancelled Lease, Permit or Other Tenures Transfer of Lease, Permit or Other Tenure Appendix A: Frequently Asked Questions Appendix B: Things to be Aware of in Processing, Inventorying and Valuing Port Properties Appendix C: SUP, PUP, RUP Permit Numbers Appendix D: Airport Authority and Airspace Leases Leases at Various Airports Airspace Leases Appendix E: Lease Type, Equity and Tenure Table Parcel Type: 02 Lease Appendix F: Incompatible Exemption/Taxation Code (ETC) Combinations.. 50 Assessment Practices and Procedures Leases, Permits and Other Tenures 2

3 INTRODUCTION This document applies to lease, license or permit (tenure) renewals, adds, cancellations and transfers where documentation has been received in the field office. If there is an occupier under the tenure, then the area occupied is assessable. The following persons or properties are assessable, as provided for by the Assessment Act: o Owners, as that term is defined in the Assessment Act, and which includes: EXECUTIVE SUMMARY Registered owner of a life estate, the tenant for life. Registered holder of the last registered agreement for sale and purchase. o Occupiers, as referred to in section: 26 (Crown land, or improvements or land and improvements) 27 (otherwise exempt land or improvements or land and improvements) 28 (municipal land or improvements or land and improvements) o Occupiers of railway land (section 25). o Owner of improvements on land where the land is under other ownership (section 30(1)). A change in a tenure holder is deemed to be a transfer. For in scope properties, add the lease, permit and other tenure information to the parent file on the Property viewer, if one exists, or add to the existing occupier folio. If it is a new occupier, create a new folio. A supplementary may be required. Assessment Practices and Procedures Leases, Permits and Other Tenures 3

4 RESOURCES Tantalis GATOR Forms and Letters Local Government Information Request Letter Legislation Assessment Act, R.S. B.C. 1996, c. 20 Land Act, R.S. B.C Local Government Act Taxation (Rural Area) Act Assessment Practices and Procedures Leases, Permits and Other Tenures 4

5 COMPLIANCE CHECKLIST The following is a list of items that must be completed in order to be considered compliant with this document: 1. By August 31, field offices must send the Local Government Information Request Letter to each local government (municipalities and regional districts) reminding them to submit occupier changes. 2. If there is an occupier under tenure, then assess the property. If it is not occupied, do not assess the property. Please refer to the definition of occupier in the Assessment Act to determine whether there is an occupier. 3. The lease date as noted on the signed assignment of lease is to be used when determining the lease assignment begin date, not the date on any endorsements. 4. If the transfer of lease, permit and other tenures has been completed for another assessment area, a servicing record will be completed for the destination office and a courtesy sent giving details of changes/updates. 5. For MIP and EPG tenures, all relevant information forwarded to MIP team mailbox for review and processing. Assessment Practices and Procedures Leases, Permits and Other Tenures 5

6 CROWN LEASES Lease Crown leases are administered by Ministry of Forests, Lands and Natural Resources and includes all leases of Crown land in British Columbia (BC). Tantalis Gator is an online search and retrieval system that provides details regarding BC Crown Land Registry. If Crown land is within a municipality and is occupied or ceases to be occupied for part of the current roll year, a supplementary roll entry is required under section 26(5) in the Assessment Act. If Crown land is not within a municipality (is rural) and is occupied or ceases to be occupied for part of the current roll year, do not process it through supplementary, however process it for the working roll year (i.e., starts August 1, 2013 add to 2014 roll). A lease should be issued where long-term tenure is required, where substantial improvements are proposed, and/or where definite boundaries are required in order to avoid land use and property conflicts. A legal survey will be required at the applicant s expense to define the tenured area. The tenure holder is granted the right to exclusive use and enjoyment of the area. The standard term for a lease is 30 years. A maximum term of 60 years is available in some land use programs. Leases of area over 520 ha must be approved on behalf of the minister by the authorizing agency. A lease can be issued in a form that is registerable in the Land Title Registry. Registered leases for a term of 30 years or more may be considered to a fully taxable transfer of interest in property and may be subject to Property Transfer Tax in accordance the Property Transfer Tax Act. Licence of Occupation A licence of occupation may be issued where minimal improvements are proposed, where there are potentially multiple users of a site (e.g., communication sites), where Assessment Practices and Procedures Leases, Permits and Other Tenures 6

7 survey is not required or when the land is located in remote areas and legal survey costs required for lease or right of way are prohibitive, and where government wishes to retain future options and management control over the use of the lands. A licence of occupation conveys fewer rights than a lease. It conveys non-exclusive use for the purpose described, and does not require a survey. However, a licence of occupation does not confer a right to the exclusive use and occupancy of the land. Government may authorize overlapping and layering of tenures. See the Occupiers APP to determine whether the licensee has reduced the area to possession and/or to determine if there is a paramount occupier. Temporary Use Permit A temporary use permit grants the right to carry out specified activity(s) for a short-term. It may be issued for any temporary uses including one-time events and sustained or repeated use of Crown land, where a business is better served by such a permit than by a license of occupation. Temporary permits may also cover a general area comprising multiple areas of use in the form of a blanket permit. It does not grant exclusive use. The maximum term is two years. They are replaceable. Investigative Permit An investigative permit grants the right to carry out specified activity(s) for a short-term, but does not allow the construction of any improvements on the land. An investigative permit may be issued to allow for the investigation of project feasibility. Commercial activity is not permitted under an investigative permit unless specifically provided for in a land use program. The permit holder must allow public access to the area without interference, and must recognize that overlapping and layering of tenures may be authorized by government. An investigative permit does not guarantee any future tenure. The maximum term for an investigative permit is two years. Investigative permits may be replaced when there are legitimate business requirements for a longer investigative period. Investigative permits cannot be assigned to a third party. Assessment Practices and Procedures Leases, Permits and Other Tenures 7

8 Map Reserve Notation of Interest A map reserve is a withdrawal from disposition, established by the authorizing agency on behalf of the minister, to temporarily withdraw or withhold Crown land from alienation for all purposes under the Land Act. It is established pursuant to section 16 of the Land Act. A map reserve is established on Crown land within or outside a municipal boundary for a specific term, with a maximum term of 30 years. A notation of interest is a recording on provincial reference maps of an interest in Crown land by another provincial ministry or agency. It is not a reserve, withdrawal or designation under the Land Act, and does not preclude the acceptance of land applications or disposition of Crown land. A notation of interest can record such long-term interests in Crown land as the location of trails, timber sale areas, grazing licences and woodlot licences. A notation of interest may be set at the discretion of the decision maker, for a term including for so long as required. For expired/cancelled Crown leases: o If it is a surveyed parcel then leave the folio on the roll, but in the name of the Crown. o If there are improvements on the parcel, check with appraiser if the parcel is still occupied if so, change to unregistered occupier (simply occupies). o If it is an unsurveyed parcel then make it inactive because the only reason that we would have had it on the roll is that it was occupied, and we would have put the occupier on for the area occupied. Once it is vacated, however, there is not anything to show on the roll. Add to the Notes tab license/lease cancelled, date of cancellation and reason. Assessment Practices and Procedures Leases, Permits and Other Tenures 8

9 Changes in Effect for Entire Year Add or remove occupier Value increases or decreases for entire year Change occupier effective December 31 or earlier (no changes to size or value) (admin only) Change occupier effective December 31 or earlier (change to size or value) Changes in Effect for Partial Year Adding an occupier effective January 2 or later (new lease) Removing an occupier effective January 2 or later (lease terminated) Value increases or decreases for partial year (i.e., lease size change) Change occupier for partial year and there is no gap in the lease dates (regardless of whether there are changes to value) (admin only) SUPP Change Add or inactivate folio. Do not use Begin or End Date. Change value. Do not use Begin or End Date. Change name on folio. Do not use Begin or End Date. Change occupier and adjust values. Do not use Begin or End Date. SUPP Change Add new folio for partial year. Key date occupation starts as Begin Date. Inactivate folio for partial year. Key date occupation ceases as End Date. Inactivate folio for partial year. Key effective date of value changes as End Date. Add new folio for partial year. Key effective date of value changes as Begin Date. Inactivate folio for partial year. Key lease transfer date as End Date. Add new folios with new occupier for partial year. Key lease transfer date as Start Date. Assessment Practices and Procedures Leases, Permits and Other Tenures 9

10 Change occupier for partial year and there is a gap in the lease dates (regardless of whether there are changes to value) For leases where the folio only exists because it is occupied (e.g., water lots): Inactivate folio for partial year. Key lease expiry date as End Date. Add new occupier for partial year. Key date occupation starts as Begin Date. For other leases/occupations: Inactivate folio for partial year. Key lease expiry date as End Date. Add new folio for Crown and make exempt. Key date lease ended as Start Date. Next Supp cycle, add new folio with occupier for partial year. Key date occupation starts as Begin Date. Inactivate Crown folio for partial year. Key lease of new tenant as End Date. Controlled Recreation Area Throughout the province there are approximately 36 Crown land properties designated as controlled recreation area (CRA) under the Resort Timber Administration Act BC Reg. 166/2007 identifies the designatined properties. These CRA licences of occupation are primarily used for alpine ski resorts; however, a CRA licence of occupation can also be used for non-alpine ski resorts over an area of Crown land where intensive recreation use and development is to occur. A CRA will generally cover the area of Crown land that encompasses the recreation infrastructure and activity areas, the area covered by the real estate development, and a reasonable buffer area that is directly related to the safe and orderly development of the all seasons resort. A CRA only applies to master development agreements or operating agreements. When referring to a licence of occupation, a developer is given certain rights to control the activities that occur within the CRA. This is to avoid incompatible activities and to ensure Assessment Practices and Procedures Leases, Permits and Other Tenures 10

11 that development and use occurs in a manner that is orderly and safe. This area should be reasonably sufficient to support the recreation infrastructure. A CRA licence of occupation is the legal mechanism that gives the right to the developer to control access and use by other persons within the defined boundaries of the CRA. The CRA enables the developer to: o Establish and delineate a recreation area boundary within the CRA and designate the boundary by notices, posted signs, fences or otherwise. o Regulate and prohibit the access and entry of persons and vehicles to the CRA. o Control, prohibit and direct the movement and activities of persons and vehicles with the CRA. o Take trespass action against persons who are in noncompliance with the above. The developer cannot unreasonably refuse to allow a person to pass freely through the CRA for the purpose of a public recreation or other activity where that person will not make use of the recreation improvements or interfere with the safe and orderly development or operations within the CRA. These rights are subject to both prior interests and permitted future interests. The resort should be shown in valuebc as owner (i.e., paramount occupier). There are occasions, however, where the Crown will issue a new lease for an area within the same CRA, and also to the same occupier. In other words the area of land covered by the lease is already on the roll and now an additional area of the resort, within the CRA, is being developed (presumably the lease specifies the details of what the occupier is allowed to do). Since this new lease imparts an additional fraction of the fee simple (a bundle of rights different from what is already on the roll even though it applies to the same area of dirt), you will need to create a new parcel record and link it to the same property. There is no additional land to value even if it were subject to marketvalue assessment. This action does not trigger a requirement to re-designate the ski hill even if improvements are added. Only if the area of land described by the designated roll number is changing would there be a requirement to re-designate. Section Assessment Practices and Procedures Leases, Permits and Other Tenures 11

12 20.2(5)(b) expressly contemplates that improvements may be added to land after the date of designation. Assessment Practices and Procedures Leases, Permits and Other Tenures 12

13 UTILITY LEASES Practices and Procedures For New Communication Sites Property Information Administrator 1. Create a new roll number for the folio. 2. Use appropriate Name Record and Bulk Mail Code. 3. Pass to appraiser. Appraiser 1. Refer to the Cost and Special Purpose website. 2. Review the Consolidated Communication Tower Guide and Tables document and the Valuation Summary Telecom Sites Revised document for instructions on how to value and code the land. 3. If improvements are in the name of a telecommunications company, the tower and any electrical distribution lines improvements should be valued by AVS using the CRS viewer forward details to BCA Commerical. 4. If the improvements are in any other name, they should be valued using the MIPs Ad Valorem viewer. NOTE The Ministry of Forests, Lands, and Natural Resource Operations website might also provide more information than what was originally sent to the local office. Assessment Practices and Procedures Leases, Permits and Other Tenures 13

14 PORT METRO VANCOUVER BCA Advice Notice Reports are received from Port Metro Vancouver (PMV) electronically via in PDF format. NOTE If property changes size and is located in a municipality, determine if a supplementary is required per section 26(5) of the Assessment Act. o Refer to Supplementary Assessments for instructions on whether a supplementary assessment is required for a change of occupier of Crown land within a municipality section 26(5) Assessment Act. Practices and Procedures General Property Information Administrator Port Authority Leases 1. Record all port authority LIDs to the Property viewer/attributes tab. 2. If property is located in a municipality, determine if a supplementary is required. 3. Create a form and if necessary complete Supp Occupancy End Date field. 4. Forward to appraiser for confirmation. Property Information Administrator If a lease cancellation is received with no renewal or other information: 1. Do not automatically delete or change the folios. Check with the port authority contact first to ensure there will be no renewal prior to initiating a supplementary roll entry. o Lease cancellation reports are only produced if the lease is truly cancelled. A lease with a cancellation date that Assessment Practices and Procedures Leases, Permits and Other Tenures 14

15 Existing Folios has come and gone is not to be assumed cancelled until the report is received. 2. All electronic copies of PMV advice notices should be stored electronically either on the server or attached to valuebc. 3. When an advice from PMV is received, a copy is printed for processing. 4. Review the advice to determine if the action is for an add, change or delete or an update to the lease type or expiry date. Property Information Administrator If the folio is active, in the Property viewer: 1. Query for the existing roll number to verify if our data is correct. 2. Verify that the correct lease number and expiry date is keyed in the Parcel Legal tab and the correct tenant name and address is keyed in the Name tab. 3. In the Attributes tab, key the PMV LID number for the attribute PALID Port Authority LID. 4. PMV provides the site size in the Advice Notice Report/Location field. Check the site size on the document and compares it to the figure entered in the Keypane/Land Size field. Assessment Practices and Procedures Leases, Permits and Other Tenures 15

16 If there is a difference between the acreage given in the Keypane and the size given on the PMV advice: 1. Make a note on the paper copy for the appraiser s review. 2. Add a record to the Servicing tab for the appraiser to sign off as complete after they have made required changes and updated valuebc. 3. Forward the Advice Notice Report to the appraiser for review. Appraiser 1. Double checks the site size on the document and ensure that the correct inventory and actual use are entered to valuebc. 2. If there are no changes to the size, add a comment to the Notes tab including the details from the remarks section of the PMV advice and the purpose/use of the leased area. 3. Update servicing record to 02 Complete and return Advice Notice Report to the property information administrator. Changes in Effect for Partial Year If Crown land within a municipality is occupied or ceases to be occupied for part of the current calendar year, a supplementary roll entry is required under section 26(5) in the Assessment Act (this does not include water lots on Barnston Island or any rural area). Property Information Administrator 1. Add or inactivate the folio and initiate the supplementary with begin or end dates as required. Assessment Practices and Procedures Leases, Permits and Other Tenures 16

17 For a new folio: 1. Key or verify all the other data for the folio as outlined in the steps above. 2. If there is a related folio, link the related property to the new folio (for example, a new water lot lease to the owner of an adjacent upland property). Appraiser 1. Inventory and value the new folio. 2. Key the values, classification and tax codes to the Supplementary Input form. Property Information Administrator For an inactivated folio: 1. Initiate the Supplementary Input form. Appraiser o The form will include the reason for the supplementary and values for checking by the appraiser. 1. Verify that the correct values, classification and tax codes are on the form. Property Information Administrator For change of occupier: 1. Inactivate the folio for the former tenant. 2. Add a new folio for the new tenant. 3. Create the Supplementary Input form(s) for the appraisers review. Appraiser 1. Inventory and value the new folio. 2. Key the values, classification and tax codes to the Supplementary Input form. Assessment Practices and Procedures Leases, Permits and Other Tenures 17

18 Appraiser Senior Appraiser For all completed supplementaries: 1. Select the correct name and the date in the approval fields on the Supplementary Input form. 2. Move the updated Supplementary Input form to the Deputy Assessor Approval folder on the server. Changes in Effect for the Entire Year If changes, adds or deletes are received in the current roll year but apply to the previous roll year then a supplementary assessment is required. Property Information Administrator 1. Initiate the Supplementary Input form. Appraiser 1. Inventory and value for changes and new adds. Appraiser Senior Appraiser 2. Verify that the correct data is on the supplementary for a property being deleted. 1. Sign off the approval and date stamp the Supplementary Input form. 2. Move completed form to the Deputy Assessor Approval folder. Assessment Practices and Procedures Leases, Permits and Other Tenures 18

19 OIL AND GAS LEASES Oil and gas (O&G) folios are created using the O&G download from Oil and Gas Commission (OGC), or drilling reports. The leases are used to confirm size, active tenure, expiry date and operator. Practices and Procedures Petroleum Leases on Fee Simple Land Property Information Administrator 1. The fee simple owner is linked to the Petro folio. o The fee simple names are maintained by the LTSA property information administrator. In the Parcel viewer: 1. Confirm legal information and lease expiry date. In the Property viewer: 1. In the Land tab and in the Keypane, review/correct land size on all three land components. 2. In the Notes tab/notes field, key correct size from size xxx to size xxx, per LBF number, or survey plan number. If lease renewal: 1. In the Parcel viewer, update lease/license number and lease expiry date. 2. In the Property viewer/servicing tab, add servicing record per O&G procedures depending on what it is (e.g., wellsite, pipeline, facility). Codes servicing required 02/01, office review 18/-09. If a cancelled lease: 1. If no improvements, make folio inactive. 2. If a combined wellsite, reduce size by the cancelled tenure and leave active. Assessment Practices and Procedures Leases, Permits and Other Tenures 19

20 3. If improved, leave active and put on for servicing to check for restoration. 4. Store permitted attachments on the Property viewer/attachment tab (refer to Property Information Document Retention APP). o Attach maps, drawings or survey plans to the Property viewer. 5. File lease, permit and other tenure information in property files if they exist, or in area/jurisdiction/document number order. Assessment Practices and Procedures Leases, Permits and Other Tenures 20

21 MUNICIPAL AND REGIONAL DISTRICT LEASES Includes all leases issued by a municipality. Includes all leases issued by a regional district. Municipalities Regional Districts There are currently 162 municipalities within the province of BC. Municipalities are governed by the Community Charter. Properties owned by a municipality are exempt from taxation by way of adding exempt tax code 71 Municipal Property within that Municipality or Rural Area. When the municipality leases the property, or a portion thereof, a separate folio is required for the taxable portion with exempt tax code 00 Fully Taxable. The parent folio will be adjusted. In order to capture new, revised or cancelled leases, BCA will, by August 31, send the Local Government Information Request Letter to each local government for current information regarding occupiers/lessees of properties owned by the local government. For municipal leases (or any leases that have historic listings of lease information) compare new leases to the previous list and check for changes. (OPTIONAL): By October 1, send a reminder to those local governments that have not yet submitted their information. There are currently 27 regional districts within the province of BC. Regional districts are governed by the Local Government Act and the Taxation(Rural Area) Act. Properties owned by a regional district are exempt from taxation by way of adding exempt tax code 73 Regional District Property within that Regional District, Used for Regional District Purposes. Assessment Practices and Procedures Leases, Permits and Other Tenures 21

22 When the regional district leases the property, or a portion thereof, a separate folio is required for the taxable portion. The parent folio will be adjusted. Reference made to the Assessment Act: Assessment of exempt land held by occupier, section (1) Land, the fee simple of which is held by or on behalf of a person who is exempted from taxation under an Act, and which is held or occupied otherwise than by or on behalf of that person, is, with its improvements, to be assessed in accordance with this section. (2) The land and improvements referred to in subsection (1) must be entered in the assessment roll in the name of the holder or occupier, whose interest must be valued at the actual value of the land and improvements determined under this Part. (3) This section applies to improvements owned by, leased to, held or occupied otherwise than by, or on behalf of, a person exempted from taxation by an Act, located on land the fee simple of which is held by or on behalf of a person exempted from taxation by any Act. Assessment of land in a municipality 28 (1) Land, the fee of which is in the municipality, held or occupied otherwise than by, or on behalf of, the municipality, is, with the improvements on it, to be assessed in accordance with this section. (2) The land referred to in subsection (1) with the improvements on it must be entered in the assessment roll in the name of the holder or occupier, whose interest must be valued at the actual value of the land and improvements determined under this Part. (3) This section applies, with the necessary changes and so far as it is applicable, to improvements owned by, leased to, held, or occupied by some person other than the municipality, located on land the fee of which Assessment Practices and Procedures Leases, Permits and Other Tenures 22

23 is in the municipality, or in some person on behalf of the municipality. (4) This section does not apply to any land or improvements that were exempted from taxation by the municipality under the terms of a lease agreement entered into before July 1, Assessment Practices and Procedures Leases, Permits and Other Tenures 23

24 HEALTH AUTHORITY LEASES There are five designated health authorities: o Fraser Health Authority o Interior Health Authority o Northern Health Authority o Vancouver Coastal Health Authority o Vancouver Island Health Authority The purposes of a health authority are set out in section 5 of the Health Authorities Act and include the broad object of developing and implementing a regional health plan and delivering regional health services. The Board and Council Purposes Regulation, B.C. Reg. 376/98, further extends a health authority s purposes to include the construction, supply and operation of housing facilities for low and moderate income individuals and families, the aged and functionally handicapped persons. Throughout the province, we have folios that assess properties owned by health authorities. Generally, these properties are exempt from taxation; however, within these properties, the health authority may have occupiers that rent or lease space for varying purposes/uses. When we are made aware of these situations, the appraiser will need review the lease/occupier information and make a determination as to whether or not a new folio is required for the leased space and what exempt tax code will need to be applied. As a general rule, if property is owned by a health authority and used by or on behalf of the health authority for a health care purpose, it may be assumed that the property meets the requisite use test and the property should be shown as exempt. Apply exempt tax code 78 Health Authorities to the property or any portion of it that meets the use requirement. If a property is owned by a health authority, but: o the property is not used for the purposes of the Health Authorities Act (e.g., rented residential properties or a strip mall with retail stores); or o the property is not used by or on behalf of the health authority (e.g., most vacant land), Assessment Practices and Procedures Leases, Permits and Other Tenures 24

25 o the property should be shown on the assessment roll as taxable in the name of the health authority or the occupier, as appropriate. Apply exempt tax code 00 All Fully Taxable Land and Improvements to the property or to any portion of it that does not qualify for the exemption. If the property is being used by or on behalf of a health authority for purposes that come within section 5 of the Health Authorities Act (e.g., a health-related purpose) or the Board and Council Purposes Regulation, the property qualifies for the exemption under section 15(1) of the Health Authorities Act as long as the ownership and purpose requirements are also met. If the property is being used but not for the purposes of the Health Authorities Act (e.g., it is rented residential property or a strip mall with retail stores), the property will not qualify for the exemption under section 15(1) the Health Authorities Act but may still qualify under section 15.01(2). See section of the Health Authorities Act section for further detail. It is more difficult to determine whether the property qualifies for an exemption when it is occupied and used by a third party. Whether a third party uses the property on behalf of the health authority will depend on the specific contractual relationship between the third party and the health authority. If a property owned by a health authority meets the criteria for exemption, apply exempt tax code 78 Health Authorities to all or a portion of the folio. For more information, refer to Health Authorities Act Exemptions APP. Assessment Practices and Procedures Leases, Permits and Other Tenures 25

26 RAIL LEASES There are times when BCA is made aware of a whole or portion of railway land is being leased. This information must be treated pursuant to section 25 of the Assessment Act. The lease notification is provided to BCA by the Railway Company, primarily by to the field office mailbox. The lease notification should provide full particulars of the lease; including, the name of the lessee/occupier, their mailing address, the duration of the lease and detailed description of the portion being leased, including size. The appraiser in charge of railways will review the lease notification to determine if it meets the criteria mentioned under section 25 of the Assessment Act. If it does, a separate folio must be created and be assessed on the assessment roll (roll) in the name of the lessee/occupier. The appraiser may provide the parent folio to the property information administrator in order to assist in the creation of new folio. Please review Party Type, Equity Type and Tenure Codes for assistance in coding the new folio. Occupiers of railway land 25 (1) If any parcel liable to assessment is railway land and part of it is leased, that part must be treated under this Act as a separate parcel and a separate entry made on the assessment roll in respect of the land or improvements or both. (2) If part of a parcel of railway land is treated as a separate parcel under subsection (1), the remainder of the parcel must be treated under this Act as a separate parcel and a separate entry made on the assessment roll in respect of the land or improvements or both. (3) The actual value of land or improvements, or both, referred to in subsection (1) or (2) must be determined under section 19. Assessment Practices and Procedures Leases, Permits and Other Tenures 26

27 (4) If the whole of any parcel of railway land liable to assessment is leased or a part of a parcel is assessed under subsection (1), the owner or lessee may give notice, with full particulars of the duration of the lease, to the assessor and request that copies of all assessment and tax notices issued during the duration of the lease be sent to the lessee. (5) After receiving a notice under subsection (4), the assessor must enter the name and address of the lessee on the assessment roll. Assessment Practices and Procedures Leases, Permits and Other Tenures 27

28 FEDERAL (NATIONAL PARK) LEASES There are seven national parks in BC. National historic sites, national marine conservation areas and national parks are dedicated to the people of Canada for their use, enjoyment and recreation in a way that leaves them unimpaired for the enjoyment of future generations. National parks in BC include: o Glacier National Park of Canada o Gulf Islands National Park Reserve of Canada o Gwaii Haanas National Park Reserve and Haida Heritage Site o Kootenay National Park of Canada (JUR 704) o Mount Revelstoke National Park of Canada o Yoho National Park of Canada (JUR 718) o Pacific Rim National Park Reserve of Canada Properties owned by the Federal or Provincial government are generally exempt from property taxation. Instead of paying property taxes, they pay Payments in Lieu of Taxes (PILT) and Grants in Lieu of Taxes (GILT), respectively, to the applicable taxing authorities. Titles are not issued for properties within a national park. Instead, plans are recorded in the Canada Lands Surveys Records at Ottawa. Generally speaking, no person shall use or occupy public lands in a park. However, we do have some exceptions throughout the province as permitted by the Canada National Parks Act, and the National Parks of Canada Lease and Licence of Occupation Regulations. The governor in council may issue, amend and terminate leases, licences of occupation, and/or easements or servitudes, of over public lands in cases like: o park communities, for the purposes of residence, schools, churches, hospitals, trade, tourism and places of recreation or entertainment o existing resort subdivisions, for the purpose of residence, etc. Assessment Practices and Procedures Leases, Permits and Other Tenures 28

29 In these cases, land and/or improvements held or occupied otherwise than by, or on behalf of, the Crown, will then be assessed in accordance to section 26 and 27 of the Assessment Act. An example of community in a national park is the Town of Field (JUR 718). The Town of Field is situated in the Yoho National Park. The lands and improvements are owned federally; however, land and improvements have been leased to taxable parties. BCA's Kootenay Columbia Region is advised of changes in lease agreements by way of a realty and municipal officer for the Yoho National Park of Canada based in the Town of Field. Specific details are provided to the office such as, folio, vendor/purchaser, lease term and sale price. When new information is provided, it must be keyed to the corresponding folio on valuebc. This might include a change on various viewers, including: property name, parcel/legal, sales, etc. A servicing may also be added in special circumstances. Assessment Practices and Procedures Leases, Permits and Other Tenures 29

30 MIP AND EPG TENURES For information about MIPs and EPGs, refer to Major Industrial and Electrical Power Group Properties. Practices and Procedures Adding to the roll at field offices this will be interspersed in the property information administrator workflows. Property Information Administrator BCA MIP Team 1. Review tenure document in order to determine which team it pertains to. Tenure pertains to MIP/EPG team: 1. Do not add tenure to the roll. 2. Create an with scanned tenure and any other additional information and it to Major Industry. 1. Review and determine assessability. 2. Advise local property information administrator to either: o add tenure to the roll. If so, local field office appraisers are to complete valuation and MIP team, in turn, reviews valuation with appraiser; or o not to add tenure. 3. Pass to another team if tenure appears to pertain to them rather than the MIP team. Property Information Administrator 1. Determine assessability. 2. Add tenure to the roll. Appraiser 1. Complete valuation but determine if tenure pertains to MIP/EPG. 2. Local field office appraiser sends an with scanned tenure and additional information to Major Industry. Assessment Practices and Procedures Leases, Permits and Other Tenures 30

31 3. MIP appraiser reviews valuation with the local or regional office appraiser. NOTE o When tenure is added to the roll, only the MIP team adds folio characteristic 50 Specialized MIP & EPG to the Property viewer/keypane. o MIP team does not complete land valuation but only reviews the land (e.g., ex/tx coding, area of occupation, etc.). Investigative use permits are non-assessable MIP/EPG tenures. AVS Administrative Assistant 1. File all incoming s. Assessment Practices and Procedures Leases, Permits and Other Tenures 31

32 PROCEDURES Job actions by job title are colour-coded as per the following legend: Property Information Administrator Appraiser Administrative Senior Appraiser General For information on dealing with a float home, refer to Floating Homes. Property Information Administrator 1. Office receives official notification of a lease, permit transfer or other tenure. 2. Query for the property using the following fields to identify the property: o Roll number o Lands Branch File Number field o Lease Number field o Free-form Legal field using wildcards surrounding the lease number o Other Parcel/Legal tab fields o Situs tab fields o Attributes tab Renewal of a Lease, Permit or Other Tenure In the Parcel viewer: 1. Update Lease Licence Number and Lease Expiry Date fields. o For leases with no expiry date use 31-Dec This does not appear on rolls and notices and allows for auditing of missing expiry dates. o Include for an indefinite term in legal freeform only when it appears in the lease. Assessment Practices and Procedures Leases, Permits and Other Tenures 32

33 In the Property viewer: 1. Check lot size to lease renewal form. 2. Attach documentation to property record. 3. In the Servicing tab, key the following: o Permit Number: key lease number o Service Type: select 14 Land Lease/License o Description: key lease renewal (also key size if it differs from Property viewer) o Date: select the lease date as noted on the signed assignment of lease o Status: select 01 Not Inspected Adding a New Lease, Permit or Other Tenure This section documents how to add a lease, permit or other tenure to the roll that is not processed by the automatic LTSA feed. 1. Use mapping and/or TANTALIS to identify geographic location of parcel. 2. Determine jurisdiction, roll number, neighbourhood, and minor taxing jurisdiction coding. 3. Create a new folio (refer to Add, Deactivate and Expire Single Folios). NOTE If a new folios is required for a different region (e.g., Oil and Gas which is processed in northern BC), please confirm roll number with the appropriate geographic region before proceeeding due to certain restrictions in roll numbers that exist across the province. In the Parcel viewer: 1. Key the legal description including the lease expiry date, lease type, lease licence number, LBF number and purpose as applicable. o For leases with no expiry date use 31-Dec Assessment Practices and Procedures Leases, Permits and Other Tenures 33

34 This does not appear on rolls and notices and allows for auditing of missing expiry dates. o Include for an indefinite term in legal freeform only when it appears in the lease. If the documents include sales information, in the Ownership viewer: 1. Query for existing sale record with Sale Staus of Dummy (which was created by the FIN 579 feed from the Ministry of Finance, Property Transfer Tax department). 2. If one exists, modify existing sale record. 3. If one does not exist, create a new sale record and link to the folio. 4. In Name viewer, query for name record(s) for the lessee and lessor. If there are existing name records: 1. Link the correct new lease/permit holders name records. 2. Ensure the name record exists in the working roll year. If a name record match is not found: 1. Create a new name record and link to the folio. NOTE Folios will not be renumbered. The parent folio will be cloned or a new folio created and the parent folio number made inactive. The old folio will always be inactive so it can still be accessed. In Property viewer/notes tab of new folio, note the old folio number and link the folios. 2. In the Property viewer/servicing tab, key the following: o Permit Number: key lease number o Service Type: select 14 Land Lease/License o Description: key new lease (include purpose of lease in description) Assessment Practices and Procedures Leases, Permits and Other Tenures 34

35 o Date: select the lease date as noted on the signed assignment of lease o Status: select 01 Not Inspected 3. If the transfer of lease, permit and other tenures has been completed for another assessment area, a servicing record will be completed for the destination office and a courtesy sent giving details of changes/updates. 4. Check if new lease is part of a larger property. If yes, then the parent folio will need to be adjusted. 5. Link as related folios. 6. Pass to appraiser for further verification, valuation and completion of inventory. When returned from appraiser: 1. Change Status field to Active for the newly created folio(s). Expired or Cancelled Lease, Permit or Other Tenures 1. Confirm the correct property by comparing known information from source document with corresponding data in valuebc. 2. Check if cancelled lease area is part of a larger property and if yes, then the area may need to be added back to the parent folio. 3. Forward to appraiser for confirmation. Supplementary may be required. 4. In the Property viewer/servicing tab, key: o Permit Number: key lease number o Service Type: select 14 Land Lease/License o Description: key lease expired/cancelled o Date: select the lease date as noted on the signed assignment of lease o Status: select 01 Not Inspected Once cancellation is confirmed: 1. Attach lease documentation to property record. Assessment Practices and Procedures Leases, Permits and Other Tenures 35

36 2. Make folio inactive for correct roll year (refer to Add, Deactivate and Expire Single Folios). Transfer of Lease, Permit or Other Tenure 1. Confirm the correct property by comparing known information from source document with corresponding data in valuebc. 2. Confirm on the Property viewer/sales tab that the tenure change has not been recorded previously. 3. Contact official notification source if vendor does not match valuebc records. 4. Ensure land size on valuebc matches land size shown on source document. o Add a servicing record if sizes are different. 5. If necessary, create a new folio (refer to the Adding a New Lease, Permit or Other Tenure section). If there is a new lessee (tenure holder), in the Name viewer: 1. Query their name record(s). 2. If there are existing name records, remove the link to the previous tenure holder's name records and link correct new tenure holder's name records. o If a name record match is not found, create a new name record and link to the folio. 3. Refer to creating a name record section of Name Records. In the Property viewer: 1. Attach lease documentation to property record. 2. In the Name tab, edit the Group and Sequence fields as necessary (refer to Name Records). In the Parcel viewer: 1. Update lease number and lease expiry date. o For leases with no expiry date use 31-Dec Assessment Practices and Procedures Leases, Permits and Other Tenures 36

37 This does not appear on rolls and notices and allows for auditing of missing expiry dates. o Include for an indefinite term in legal freeform only when it appears in the lease. 2. If required, in the Property viewer/servicing tab, key: o Permit Number: key lease number o Service Type: select 14 Land Lease/License o Description: key lease assignment and if size differs from Property viewer: land size changed from XX to YY for lease number xxxx o Date: select the lease date as noted on the signed assignment of lease o Status: select 01 Not Inspected In the Ownership viewer: 1. Query for existing sale record with Sale Staus of Dummy (which was created by the FIN 579 feed from the Ministry of Finance, Property Transfer Tax department). 2. If one exists, modify existing sale record. 3. If one does not exist, create a new sale record and link to the folio. 4. If the transfer of lease, permit and other tenures has been completed for another assessment area, a servicing record will be completed for the destination office and a courtesy sent giving details of changes/updates. 5. Pass to appraiser for further verification, valuation and completion of inventory. Appraiser o Provide the appraiser with any documentation or printed copies of plans received from the source. If lease is a renewal: 1. Update the Property viewer/servicing tab. 2. Change the land size if necessary on the Property viewer/land tab and the Property viewer/keypane. Assessment Practices and Procedures Leases, Permits and Other Tenures 37

38 If lease is new: 1. If folio is to be entered on the supplementary roll, update values on Supplementary Input Form, forward Supplementary Input form to senior appraiser for approval (see Supplementary Assessments). Update value information. 2. Update Servicing tab. 3. If leased area is part of a larger property, then adjust the areas and values for the parent folio. 4. If folios are to be entered on the supplementary roll, add the updated values. 5. Forward to senior appraiser for approval (see Supplementary Assessments). 6. In the Property viewer/land tab/land Characteristics spreadsheet/characteristic Type field: select 36 Water Lot for all water lot folios. If lease is expiring or is cancelled: 1. Confirm leased area is not in use. 2. If leased area is part of a larger property, then adjust the areas and values for the parent folio. 3. If folio is to be entered on the supplementary roll, either confirm information on Supplementary Input form or add updated values. 4. Forward Supplementary Input form to senior appraiser for approval (see Supplementary Assessments). 5. Update the Property viewer/servicing tab. If lease is assigned or transferred: 1. Review sale information if supplied. If area has changed: 1. Change lot size on Property viewer/keypane and Property viewer/land tab. Assessment Practices and Procedures Leases, Permits and Other Tenures 38

39 2. Update value information on the folio if necessary. 3. If tenured area is part of a larger property, then adjust the areas and values for the parent folio. 4. Update Servicing tab. 5. If folio is to be entered on the supplementary roll, confirm information on Supplementary Input form is correct, forward Supplementary form to senior appraiser for approval (see Supplementary Assessments). Property Information Administrator 1. When information is returned from appraiser, change Property viewer/keypane/status field to Active for the newly created folio(s). 2. If a supplementary is being processed, folio may be made Active when amendment is keyed so as not to show on data advice prior to supplementary roll processing. Assessment Practices and Procedures Leases, Permits and Other Tenures 39

40 APPENDIX A: FREQUENTLY ASKED QUESTIONS Question 1. Answer Question 2. Answer Question 3. Answer An assignment of a lease, signed by all parties (assignor, assignee and Crown lands) was received with one date, but then there was an endorsement received with a different date. Which date is the date to use when determining when the lease assignment began? Use the date on the signed assignment of the lease. The endorsement is an internal administrative document that does not affect the legal effectiveness of the assignment. How do we create a result set of BC Rail with all of its leased properties in an area? Link each BC Rail folio to its leased folios using the Property viewer/related Folios tab. The BC Rail folio will be the parent folio and each of its leases will be its children. Offices receive the VFPA electronic BCA Advice Notice Report(s) for internal processing from Port Metro Vancouver (PMV). There are issues with the timing of information sent to BCA from Port Metro and the back dating of the agreements/permits/licenses. Why is there a time lag between cancelling the lease and renewing it, when to all appearances, nothing is changed? Is there some kind of proactive action BCA could initiate, insofar as educating PMV, so that they understand the issues this causes us, and more importantly, the local taxing authorities? Per Property Assessment: the deputy assessor in Greater Vancouver region is the main point of contact with Port Metro. We have been discussing lease issues with Port Metro over the last while and will continue to do so. It is not a black and white issue for us or them, but we do hope to have some improvement in the future. In the meantime, I suggest that we do not automatically delete or change folios on the basis of the lease changes. It should go to the appraiser for further investigation. Assessment Practices and Procedures Leases, Permits and Other Tenures 40

41 APPENDIX B: THINGS TO BE AWARE OF IN PROCESSING, INVENTORYING AND VALUING PORT PROPERTIES The Advice Notice Report from PMV typically has a map on the back of the advice. The illustration below is normally what is received and in many cases is adequate to proceed with the inventory and valuation. In this example, the leased area appears to be all water lot. However, in some cases, it is apparent that part of the area is filled. Assessment Practices and Procedures Leases, Permits and Other Tenures 41

42 In this case, an air photo map is required to estimate the filled area or a call to PMV is necessary in order to proceed with the inventory and valuation. The air photo below illustrating the same property was supplied by PMV and depicts the upland area that is not covered by water. The photo also shows that there are floating improvements on the water lot. Previously this folio was coded as vacant. The actual use was corrected and a value was added to the assessment roll to recognize a value for the improvements. A note was added to the Property viewer/notes tab as shown below. Assessment Practices and Procedures Leases, Permits and Other Tenures 42

43 An entry to the Property viewer/servicing tab was included to enable the appraiser to run a servicing report that will capture all of the floating improvements that were added without benefit of an inspection or uniform costing procedures. For more information, refer to Port Metro Vancouver Administration Process document and Waterlots and Submerged Land Training. Assessment Practices and Procedures Leases, Permits and Other Tenures 43