District council is looking at a bylaw to encourage growth and employment opportunities through tax exemptions.
Section 226 of the B.C.’s community charter enables municipalities to exempt a property from municipal taxes provided the property owners agree to the conditions of a revitalization program. Sicamous council had asked district staff for more information on revitalization tax exemptions allowed under the charter and whether they should be considered “in an attempt to bring commercial development and employment to the municipality.”
According to a report from district administrator Alan Harris, provided to council at its Jan. 26 committee of the whole meeting, revitalization tax exemption allows municipalities to meet the following needs: environmental – encourages green building technology, environmental sustainability and brownfield redevelopment; economic – encourages investment and employment; and social – encourages affordable housing. Other applicable types of revitalization include redevelopment for community sustainability, conservation of heritage property, neighborhood rejuvenation or façade improvements.
A revitalization bylaw may apply to the value of the land or improvements, or both, though they are limited to municipal property values (excluding parcel tax).
The maximum term for an exemption is 10 years.
Coun. Fred Busch commented that while the bylaw may seem attractive, it would mean the district would have to do without tax dollars while still providing services.
“We can’t say because you’re not paying any property taxes, we’re not going to give you any fire service…,” said Busch.
Regarding a timeline, Mayor Malcolm MacLeod suggested five years could be the maximum. MacLeod also said he thought the bylaw is intended not for subdivisions or condos, but the kind of development that would bring employment to the community.
“That person would be forgiven for five years, but hopefully, it would stimulate the whole town and eventually, we would benefit from it,” said MacLeod.
Coun. Charlotte Hutchinson said she liked the idea but suggested the 10-year-timeline might be too long, and that in setting a timeline, the district should look at what the impact might be.
Coun. Heidi DeWit added that full tax exemption may not be necessary.
“Zero tax is awesome, but you can still do half,” said DeWit, who agreed with Busch that a tax revitalization bylaw can be a double-edged sword.
“I like this idea and I think it’s a positive step… But, as Coun. Busch said, you can cut yourself with this kind of program and you don’t see it until a few years down the road,” said DeWit.
Council accepted the report as information.