The City of Penticton will receive nearly $100,000 in grant funding in lieu of property taxes from the provincial government. The initiative is to compensate municipalities for the services they provide that benefit provincially-owned buildings, since they are exempt from paying municipal tax under the federal Constitution Act. (Photo from Unsplash)

The City of Penticton will receive nearly $100,000 in grant funding in lieu of property taxes from the provincial government. The initiative is to compensate municipalities for the services they provide that benefit provincially-owned buildings, since they are exempt from paying municipal tax under the federal Constitution Act. (Photo from Unsplash)

City of Penticton receives nearly $100,000 grant in lieu of property tax from province

The grant money will fund and maintain public services and local infrastructure projects

The City of Penticton is receiving a sizeable chunk of cash from the Ministry of Citizens’ Services as a grant-in-lieu of property taxes.

According to a release, every November the province “pays grants in lieu of property taxes to municipalities and regional districts for services they provide in their communities, such as parks, sewers, roads and fire protection. The grants are for properties owned by the provincial government, such as office buildings, warehouses and courthouses.”

This year, Penticton will receive $96,545 which will be used to “fund and maintain priority public services and local infrastructure projects.”

READ MORE: Penticton’s OSNS benefits from $10,000 RBC grant

“We’re proud to support the important work local governments do every day to create jobs, strengthen our local economies and deliver the services British Columbians rely on,” said Selina Robinson, Minister of Municipal Affairs and Housing and Minister of Citizens’ Services, in the release. “These annual grants play a critical role in helping local governments with planning – they use the funding to provide vital services and infrastructure that help improve people’s lives.”

In total, 54 communities will receive grants through this initiative, totalling more than $16 million. The initiative was kickstarted in 1963 in recognition of the B.C. government’s “responsibility to compensate municipalities for local services that benefit provincially-owned properties” since the province is exempt from paying taxes to municipal governments under the federal Constitution Act.

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