The Property Assessment Appeal Board last week slashed the West Vancouver terminal's assessed value from more than $47 million to just $20 dollars.
That means the regional district must repay the ferry corporation $750,000 it had paid in property taxes retroactive to 2010.
Delta Mayor, Lois Jackson, is concerned a cash-strapped BC Ferries will look their way for tax refunds for the Tsawwassen ferry terminal.
"It means to Delta municipality about $668,000 a year. To our school board it’s about $400,000 a year," Jackson said.
"I really cannot fathom a property being downgraded from millions of dollars to simply $20 dollars. What is that all about?"
The board decided the Horseshoe Bay terminal is basically worthless because it is a one-use facility operated by a company that can’t make legally a profit.
Jackson says Delta gives BC Ferries water, sewer, power, and emergency services and the corporation might reasonably be expected to pay its way.
BC Ferries is currently looking for ways to cut millions from its operating costs to cover a growing budget deficit.