The B.C. government is planning on providing some tax relief to small businesses, non-profits and arts and culture organizations hit hard by property tax increases.
The province announced on Friday plans to introduce the interim business property tax relief legislation this spring.
The legislation will give municipalities the ability to provide property tax relief to small businesses and organizations that they identify as paying high property taxes.
“I understand people’s frustration after years of an out-of-control real estate market have left many small businesses, non-profits and arts organizations struggling with unexpectedly large tax increases,” Municipal Affairs and Housing Minister Selina Robinson said.
“With this interim legislation, we are giving municipalities the tools they need to provide immediate property tax relief to targeted properties, for 2020, while we continue to work with stakeholders on a permanent province-wide fix.
“The old government heard concerns and did nothing — we listened and got to work on solutions for people.”
Pressure has been building on the province to act as businesses, especially in Vancouver’s busiest corridors, are forced to shut down due to rising costs.
In April, city council approved a two per cent shift of the tax burden from businesses to homeowners in an effort to reverse that trend.
Vancouver Mayor Kennedy Stewart has previously said he would be supportive of provincial measures to allow additional property tax relief for small businesses.
Stewart said Friday he welcomes the new proposal and was a part of discussions with Robinson that will end up shaping the final legislation.
“This is a very serious issue for us,” he said. “We’re losing beloved businesses and non-profits due to this antiquated tax system that we have, and this is the single most important thing we can do to bring relief.”
The province says the interim legislation would allow municipalities to exempt a portion of the value of a subset of commercial properties from taxation, easing the tax burden for tenants responsible for property taxes through their commercial leases.
The plan is to have the new, interim rules apply to the 2020 tax year.
Stewart said city council would then have to pass a new bylaw to reflect the legislation, which would include public consultation. But he’s hopeful that could also get passed quickly to bring relief as soon as possible.
“We need to get this passed by March 31 to provide relief to businesses this fiscal year,” he said. “I do want to see the details of this, but if it is what we want then I would encourage all parties in the legislature to support this and get it through quickly.
“Don’t do the regular bickering back and forth. Just get it done so we can take the stress off these legacy businesses and non-profits. That’s the key here.”
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