WCEL > Issues > Urban Growth and Development > Smart Bylaws Guide > Part 7 > Tailoring Property Taxes

Smart Bylaws Guide – Tailoring Property Taxes

Local governments have some ability to encourage smart growth through property tax incentives.  Municipalities have the authority to exempt heritage and riparian property that are subject to a covenant or, in the case of heritage property, an agreement for their protection.  These specific powers enable municipalities to promote smart growth goals in town centres and for green infrastructure through fiscal benefits to landowners in recognition of their contribution to building better communities.  Reusing existing infrastructure such as heritage buildings adds to the historic character of communities, and protecting riparian areas is a key component of creating a green infrastructure network.

Riparian Tax Exemption

The Town of Gibsons provides a property tax exemption option for landowners who protect riparian areas using a covenant.  The purpose of the exemption is to provide an incentive for the rehabilitation of riparian areas and to allow access to the riparian zone for this work.  To date, the Town has focused on the lower reaches of Charman Creek and the 11 lots closest to the ocean.  Upstream of the 11 lots, the municipality owns 16 hectares (40 acres) that is largely intact riparian habitat.  Town staff have found that the use of this tool involves considerable public education because most landowners do support rehabilitation but do not want to have a covenant on title.  While this is a useful remediation strategy, dedication of riparian areas at subdivision or rezoning are more effective mechanisms to secure riparian land.

Riparian Area Tax Deduction Bylaw No. 944 (2003)

For More Information

Chris Marshall, Planner, (604) 886-2274, chrismarshall@gibsons.ca

Heritage Tax Exemption

The City of Victoria has a ten-year tax exemption program for the revitalization of heritage properties that include a residential component.  The Tax Incentive Program applies to owners of heritage designated buildings in the downtown core.  The purpose is to offset seismic upgrading costs for residential conversion of upper storeys.  The program has been used successfully to rehabilitate several heritage buildings and increase the amount of market rental units in the downtown.

For More Information

Steve Barber, Heritage Planner, (250) 361-0289, steveb@city.victoria.bc.ca

West Coast's Green Buildings Guide (PDF 990 Kb)

Revitalization Tax Exemption

Municipalities have a new revitalization tax exemption power to grant tax exemptions if owners revitalize designated properties in accordance with municipal guidelines.  This power has significant potential in helping municipalities set detailed redevelopment standards based on smart growth principles, including stormwater management based on green infrastructure standards, integrated transportation networks, and building design guidelines.

The District of Maple Ridge Revitalization Tax Exemption Bylaw No. 6412-2006 - provides financial incentive for high rise residential development in downtown core revitalization area; and even greater tax breaks if the development meets a "green" option of LEED Silver, Gold or Platinum (Community Charter sections 226 and 227)

Chilliwack, Kamloops, Kelowna, Prince George, and Salmon Arm have all established revitalization tax exemption programs, with a view to revitalizing their downtown cores or other targeted areas.

For More Information

Revitalization Tax Exemptions:  A Primer on the Provisions in the Community Charter (BC Ministry of Community Services publication)

West Coast's Green Buildings Guide (PDF 990 Kb)