Reference to the CFA’s Advocacy Update from October 6, 2022

Small businesses and non-profit organizations paying high property taxes because of future development potential may see some financial relief through new municipal property tax rate flexibility.

Municipalities will have the ability to identify what types of properties or areas in their community are affected by high-density development potential and to provide relief to the commercial properties that need it most by taxing the assessed value of the land at a reduced municipal tax rate.

The tax measure will be in place for the 2023 tax year, replacing the Interim Business Property Tax Relief program introduced in March 2020.

Challenges with split assessments were first identified in B.C. in 2014. The tax change is an outcome of the Property Assessment Strategic Review, launched by the Ministry of Finance in 2019, to fully assess and analyze property tax mitigation strategies for small businesses and find a long-term solution.

The new tax relief tool is permissive and not automatically applied; municipalities and taxing Treaty First Nations can decide whether or not to implement it.

For properties that meet the provincial eligibility criteria, the municipalities can choose which properties receive the relief and set the percentage of land that will be taxed at the lower rate. The tax relief tool will be available to eligible properties for as long as five years.

BC Assessment considers the highest and best use of a property when determining the assessed value, which is a standard commercial appraisal method used throughout North America.

For more information about the changes visit: https://workingforyou.gov.bc.ca/legislation