2023 Property Taxation Relief Programs

Summary

• Council approved a pilot Development Potential Relief Program (DPRP) for approximately 1,360 eligible Light Industry (Class 5) and Business and Other (Class 6) properties, reducing the general purpose tax rate on a portion of assessed land value by 50%.
• The relief targets properties where assessed value has been driven up by development potential rather than their current use, creating significant tax burdens for tenants of small businesses, arts organizations, and non-profits on triple-net leases.
• The percentage of land value subject to the reduced rate varies by neighbourhood and zoning district (5% to 55%), capped at $5.4 million in assessed value; property owners must notify their tenants of the relief and submit a written declaration to the City by March 31, 2023.
• Council also approved targeted 5-year land assessment averaging for eligible residential, light industry, and business properties whose assessments rose more than 10 percentage points above the class average, helping smooth out sudden large tax increases.
• Properties that applied for or received upzoning at their own initiative are not eligible for averaging; properties receiving DPRP relief are also excluded from averaging.
• Staff directed to consult Business Improvement Associations, the Board of Trade, the Canadian Federation of Independent Business, and arts and non-profit partners to evaluate the pilot and explore future improvements; staff also directed to work with the Province and BC Assessment on longer-term data and implementation challenges.
• Three speakers appeared in support of the program.

Vote

Documents

• Report – 2023 Property Taxation: Development Potential Relief and Targeted Land Assessment Averaging
• Presentation