Abbotsford (City of Abbotsford) – The City of Abbotsford is asking the B.C. government to consider how the newly announced expanded Provincial Sales Tax (PST) program will negatively impact local governments in B.C., and also for the B.C. government to engage meaningfully with local governments before BC Assessment implements any future changes to their valuation methodology.
Earlier this month, Mayor Siemens and Councillor Warkentin attended the Lower Mainland Local Government Association (LMLGA) conference to submit two resolutions for adoption: one proposing exempting local governments from the expanded PST, and the other proposing municipal engagement on pipeline valuation changes. Councillors Driessen and Ross also attended as representatives of the Fraser Valley Regional District.
After being successfully adopted by the LMLGA, these resolutions will be forwarded to the Union of B.C. Municipalities (UBCM) for consideration and support at their annual convention in September.
Municipal PST exemption
Through its first resolution, Abbotsford is asking for UBCM to urge the Government of BC to exempt or eliminate the impact of the expanded PST on municipalities to avoid cost downloading and to protect local government financial sustainability and local affordability.
This request was made by Abbotsford in response to the expanded PST program announced in the Province’s 2026 budget, which will apply to a broader range of services, including those that local governments rely on to provide core infrastructure and services. This change by the Province adds further financial pressure to municipalities that are already impacted by the cost of infrastructure, housing and climate adaptation. Applying the PST to municipal purchases also represents a cost shift within the public sector that does not increase service value.
Abbotsford City Council also sent a direct letter to B.C. Finance Minister Brenda Bailey, requesting that the Province consider either exempting local governments from the application of PST on professional and related services, or implement a rebate or offset mechanism, similar to the GST model, to avoid intergovernmental cost downloading and mitigate impacts on affordability and infrastructure delivery.
Pipeline valuations – BC Assessment
The City’s second resolution urges UBCM to advocate to the Province to ensure that BC Assessment conducts meaningful engagement with municipalities and regional districts, through UBCM, before making any future changes to the valuation methodology for pipeline and other major regulated utility properties. This includes providing sufficient notice, clear disclosure of financial impacts, and opportunities for local government input before decisions are finalized.
This comes after the decision by the B.C. government in December 2025 to direct BC Assessment to postpone implementing significant changes to the valuation methodology for pipelines. This would have resulted in substantial shifts in the tax burden from pipeline operators to residential and business property classes, which would lead to financial impacts for local governments.
Municipalities rely on stable, predictable assessment practices for long-term financial planning, and any changes to these practices, particularly within the Utilities Tax Class, will have provincewide implications for local government taxes, budgeting and property class equity.
