Interim Business Property Tax Relief Exemption
Municipal councils may, by bylaw, exempt a portion of the assessed commercial value of specific properties from taxation where there have been significant increases in property taxes levied due to changes to the official community plan or zoning, or market trends, for example.
Municipalities may provide short-term property tax relief (through the 2024 tax year) to commercial property tenants responsible for property taxes, particularly small businesses, non-profits and arts and culture organizations.
In order to be eligible for the interim business property tax relief exemption, properties must be
- Assessed in whole or in part as class 5 (light industry) or class 6 (business and other), and
- Have at least one commercial tenant responsible for all or a portion of the property taxes, the amount of which varies with the amount of tax imposed.
Municipalities must also set certain criteria thresholds:
- Base year (2015 or any year thereafter), to use as comparison to the current tax year,
- Percentage increase in assessed class 5 or 6 land value over base year. For example, the combined class 5 or 6 land value for 2020 must be X % higher than it was in 2015,
- Minimum land value percentage of total assessed value, for example, for the current tax year, the portion of the total assessed value of the property attributable to land must be X %, and
- Percentage of the exemption by property, area or kind, for example, all qualifying properties in neighbourhood Y receive a X % exemption
The exemption applies for both municipal and school tax purposes. Municipalities will determine annually which properties to exempt and to what extent.