Municipal Revitalization Provincial Property Tax Exemption
Municipal revitalization property tax exemptions for eligible new purpose-built rental housing will also apply to provincial property taxes starting in 2019.
The provincial property tax exemption mirrors the terms of the municipal exemption, including the length of the exemption and the percentage of the property exempted from tax.
Do I Qualify?
The provincial exemption applies to qualifying rental property that meets all of the following:
- A municipality must issue a revitalization tax exemption certificate for the property under a revitalization program
- The issued revitalization tax exemption certificate must include the creation of new rental housing
- The revitalization tax exemption certificate must be issued on February 21, 2018 or later
- All rental units in the property must be occupied by a tenant who is not required to vacate at the end of the first month
- The owner must notify BC Assessment by October 31 of the preceding year the exemption applies that the rental units are ready for occupancy
A qualifying rental property must:
- be classified as residential property (class 1)
- not consist of strata lots
- include at least 5 rental units that have been, since the revitalization certificate was issued,
- newly constructed or placed on the land, or
- the result of a substantial renovation to existing improvements
A rental unit means living accommodation rented or intended to be rented to a tenant and includes living accommodation provided:
- by an educational institution to its students or employees
- for emergency shelter or transitional housing
- in a community care facility
- in a public or private hospital, a mental health facility, or an observation or psychiatric unit
- in a health facility providing hospitality or health care support
- for rehab or therapeutic treatment services
Substantial renovation means all or substantially all of the improvements have been removed or replaced, other than structural components, which could include the roof, the foundation, exterior walls, interior supporting walls, floors and staircases.
To apply, the owner must contact the municipal Area Assessor once a municipal revitalization certificate is in place.