Pipeline Tax Shake-Up Halted
BC Assessment has scrapped a planned change to how pipelines are valued for property tax purposes, a move welcomed by local governments and taxpayers alike. The Thompson-Nicola Regional District (TNRD) says it was informed that the proposed update will not proceed for the 2026 assessment year, easing concerns about major tax shifts.
The original plan first shared with local authorities in September would have reduced the assessed value of pipelines by about 23–30 per cent next year, a change that could have dramatically cut tax revenue from pipeline companies.
Local Governments Breathe Easy
Officials in the TNRD and other communities feared that a drop in pipeline tax values would force residents and businesses to make up the difference through higher property taxes. In fact, estimates suggested that TNRD alone could have faced roughly $1 million in lost revenue, with ripple effects across municipal budgets if the changes had taken effect.
Instead of a decrease, BC Assessment now expects pipeline tax values to rise by about seven per cent in 2026, a significant shift from the earlier proposal that would have slashed valuations and shifted financial burdens.
TNRD board chair Barbara Roden called the reversal “very good news,” noting that the change protects other property classes particularly residential and business taxpayers from shouldering increased levies.
What Comes Next
While the cancellation provides a reprieve for local governments, it doesn’t close the chapter on pipeline taxation discussions. The TNRD has been advocating for more thorough consultation and transparency in any future valuation changes, emphasizing that municipalities should be engaged early to understand potential effects and avoid sudden financial impacts.
BC Assessment and provincial officials say they plan to continue working with regional districts and municipalities to ensure fair and transparent assessment practices going forward but details on how future revisions might be approached remain to be seen.
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