Local Government – Tax Exemptions

 

Taxation can be an important tool for environmental protection.  By taxing environmentally harmful practices and giving tax discounts for environmentally sound practices government can create incentives for private individuals to act in an environmentally benign way. 

 

The Local Government Act allows municipalities and regional districts to exempt riparian areas from property taxes if the area is protected by a conservation covenant under the Land Title Act.  This is an important mechanism to encourage land owners to protect environmentally sensitive areas near streams and rivers. 

 

A conservation covenant is a written agreement between the landowner and a covenant holder covering all or part of a parcel of land.  In the agreement the landowner promises to protect the land as provided in the covenant.  The covenant holder can enforce the covenant if the owner does not abide by its terms.  The covenant is registered against the title of the property and binds future owners, but can be modified if circumstances change.  For more information about conservation covenants see the Guide’s Land Title Act page. 

Related Guide Pages:

·          Local Government Act

·          Land Title Act

For more information on tax exemptions for riparian areas:

·          Ann Hillyer and Judy Atkins. 2000. Greening Your Title: A Guide to Best Practices for Conservation Covenants (West Coast Environmental Law).