As part of continuing measures to provide tax relief for small business, the Province of BC has announced a new Interim Business Property Tax Relief Program that will allow local governments to provide immediate property tax relief for the 2020 tax year.
This relief will apply to small businesses and non-profits, as well as arts and culture organizations, that are struggling with high lease costs due to years of rapidly increasing property values.
A Solution for Each Municipality
Recognizing that each municipality faces a unique business rental landscape, the tax relief program allows municipalities to exempt, by law, a portion of the assessed value of those properties most affected by this issue in a way that works for their community.
This change will reduce the taxes paid by these properties, reducing lease costs for tenants with triple-net leases. It is also designed to give municipalities maximum flexibility to tailor the way they identify properties in need of relief in their communities and to set the amount of tax exemption for selected properties.
“Years of an out-of-control real estate market have resulted in unexpected tax spikes for many small businesses that pay property taxes as part of their commercial leases,” said Selina Robinson, Minister of Municipal Affairs and Housing.
“People have been asking for help, and today we’re offering a way for local governments to provide that help. This new program empowers local governments to provide immediate relief to the small businesses and organizations most affected by skyrocketing property taxes in their communities.”
Permanent Legislation is Coming
This program is an interim solution while the Province of BC continues to work with local governments and the Union of British Columbia Municipalities, as well as business and community stakeholders on a permanent solution that will work for communities of all sizes throughout the province.
For more information about the municipal affairs and housing statutes amendment act, visit: https://news.gov.bc.ca/21630