The BC Government says a new Interim Business Property Tax Relief program will let local governments provide immediate property tax relief to small business and non-profits for the 2020 tax year.
This relief will also apply to arts and culture organizations that are struggling with high lease costs as a result of years of rapidly increasing property values.
“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.
“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.”
The government says the program will let municipalities be exempt to a portion of the assessed value of the affected properties in a way that works for their community.
“It will reduce the taxes paid by these properties, reducing lease costs for tenants with triple-net leases,” Robinson said. “The legislation gives 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.”
This government says this program is an interim solution while a permanent solution is being worked on, however, the opposition BC Liberals says this legislation is not what small businesses, local governments and other stakeholders were asking for.
Municipal Affairs Critic and Kamloops South Thompson MLA Todd Stone says what those groups wanted was ending the tax on unused airspace.
“Instead of adopting a flexible, common sense and widely supported solution, Housing Minister Selina Robinson has turned her back on local businesses and proposed legislation that doesn’t actually take action to address skyrocketing property taxes on unused airspace over the heads of small businesses,” said Stone.
He says the legislation means other small businesses will still be taxed on the unused airspace about their heads instead of creating a new commercial property sub-class for affected organizations facing massive property tax increases.
“Split assessment was what local governments, businesses, and organizations wanted,” noted Stone. “The Minister has proposed an approach which will require small businesses to lobby local governments for exemptions case by case.”
He says he is urging the Minister to reconsider her legislation and implement a solution that will work for all stakeholders.
