The government is changing how Halifax Regional Municipality (HRM) receives property taxes from Imperial Oil by amending the Oil Refineries and L.N.G. Plants Municipal Taxation Act.
The special property tax arrangement put in place by regulation in 2003 for the Imperial Oil refinery in HRM is being removed.
Since the property is no longer a refinery and is being converted to a storage facility, the taxes paid by Imperial Oil to HRM will revert to the standard approach of property assessment times tax rate.
“We know it is important to have a competitive business environment in the province, which includes a fair level of taxation,” said Municipal Affairs Minister Mark Furey. “These changes will ensure that the company will pay an equitable rate of tax, recognizing that the facility is no longer operating as a refinery.”
Retroactive to April 1, Imperial Oil will be taxed the same as other commercial properties. Based on the estimated market value of the storage facility, taxes are expected to be $2.6 million. This is a drop of about $1 million from the taxes paid in 2013-14. The changes will provide greater certainty for future taxation levels.
The amendments followed consultation by the government with both HRM and Imperial Oil.
The facility’s conversion process is expected to be finished during the 2014-15 fiscal year.
Source: Release