NOTICE OF INTENTION TO ADOPT REVITALIZATION TAX EXEMPTION
NOTICE OF INTENTION TO ADOPT REVITALIZATION TAX EXEMPTION BYLAW, NO 1221
The Council of the City of Castlegar wishes to establish a revitalization tax exemption program in order to create an economic stimulus that will encourage capital investment, expand the commercial property tax base, enhance the visual appeal of commercial properties within the City and create economic growth opportunities throughout the City.
The program is intended to accomplish this objective by providing a tax exemption to commercial class 6, properties throughout the City. The exemption will apply to renovation, alteration or expansion projects. Commercial properties that engage in these types of projects may be exempted from municipal taxes on the new assessment value attributable to the renovation, alteration or expansion of their building.
It is proposed that the bylaw provide a tax exemption for six years as follows:
· Year 1-3: 100% of the assessed value attributable to the alteration or expansion;
· Year 4 – 80% of the assessed value attributable to the alteration or expansion;
· Year 5 – 60% of the assessed value attributable to the alteration or expansion;
· Year 6 – 40% of the assessed value attributable to the alteration or expansion.
The amount of the annual tax exemption will be equal to that part of the municipal portion of property taxes imposed under Section 197(1)(a) of the Community Charter calculated by deducting the baseline assessment (BC Assessment’s last published land and improvements assessed value immediately before the commencement of the project) from the current assessed value and applying the difference to the current municipal tax rate. It is proposed that the bylaw provide an exemption on the first $750,000 of a project and it is estimated that the maximum tax saving incentive that the bylaw would provide is approximately $41,100.
City of Castlegar, Director of Finance (250) 365-7227