School tax exemptions and credits

Provincial industrial property tax credit

The provincial industrial property tax credit (ITC) is no longer in effect. For context, see Section 131.2(2.2) of the School Act, which was amended as part of the 2022 Budget Measures Implementation Act.

Agricultural land reserve

If your property is located in the agricultural land reserve (ALR) according to the Provincial Agricultural Land Commission, you are eligible for a reduction in the amount of property taxes you pay each year.

The ALR tax exemption reduces the amount of property tax you pay on the land value in all property classes up to 50% for all property taxes except:

• Municipal tax
• Provincial rural area tax

The property must be subject to development restrictions and be either:

• Vacant and unused
• Used for a farm or residential purpose

The additional school tax rate may apply if the residential portion of the property is still valued over $3 million after the ALR exemption is applied.

The exemption is automatically included in your property assessment and applied to your taxes by your taxing authority.

Alternative energy power projects

Alternative energy power projects include eligible hydroelectric power projects and wind power projects.

Hydroelectric power projects

Eligible hydroelectric power projects may receive an exemption from school tax on specified improvements used in power production. This exemption does not apply to property taxes other than school tax. If you believe your project qualifies for the exemption, contact BC Assessment.

Claim a refund

Eligible hydroelectric power producers have a three-year window after January 1 of the first year in which they received the school tax exemption to apply for a refund of school taxes paid on eligible improvements.

To apply for a refund, send a letter to the Minister of Finance requesting the refund and providing:

• The name of the power project
• The name of the owner of the project
• The folio number or property identification number for the property

Email your letter to ruraltax@gov.bc.ca or mail it to us at:

Property Taxation Branch
Taxation Operations
PO BOX 9446 STN PROV GOVT
VICTORIA BC  V8W 9V6

Wind power projects

Wind power projects use the wind to generate electricity. Eligible wind power projects receive an exemption from school tax for the towers that support the wind turbines as well as the foundations for those towers.  

This exemption does not apply to property taxes other than school tax. The exemption is automatically provided by BC Assessment.

Provincial farm land tax credit

The provincial farm land tax credit reduces the amount of school tax you pay by 50%. If you qualify, you will automatically receive the credit on your property tax notice.

Do I qualify?

To qualify for the credit your property must be classified as Farm (class 9).  If you believe your property is not classified correctly, contact BC Assessment.

Additional credits or exemptions

There may be additional credits or exemptions that carry over to school tax available through your taxing authority, including your municipality. Please contact your taxing authority for more information.