One Time Kelowna Property Tax Relief Proposed for Some Owners
Kelowna City Council will consider a proposal to provide a one-time grant to some property owners facing significant property tax increases. This proposal comes after a recent BC Assessment update resulted in a jump in assessed value for over 420 residential, business, and industrial properties.
The Cause
- Municipal planning changes have significantly increased the development potential of these properties.
- While this translates to potentially higher future selling prices, it also translates to much higher property taxes in the short-term (notices mailed next month).
The Impact
- The biggest increases are expected for Class 5 (light industrial) and Class 6 (business) properties.
The Proposal
- City finance director Joe Sass recommends developing a one-time grant program to ease the financial burden for these property owners.
- Specific details like grant size and eligibility criteria would be determined later. Considerations could include:
- Increase in property assessment
- Property's primary use
- Assessment class
Additional Relief
- Sass also proposes extending the tax payment deadline for light industrial and business properties from early July to November 1st, 2024, without penalties.
Background
- Over 9,000 Kelowna properties (16% of the total) were recently rezoned to encourage denser residential and commercial development within established areas.
- Most of these properties saw a valuation increase below 30%.
- However, 420 properties experienced a jump of more than 30%, leading to an estimated $3.5 million increase in tax revenue for the city.
Next Steps
- If approved by council, city finance staff will develop the grant program details and present a further report.
- The report does not address potential funding sources, program cost, or impact on the city's 2024 budget.
Coldwell Banker Horizon Realty is closely monitoring this situation and will provide updates to our clients as they become available. If you are a property owner who may be impacted by these proposed changes, we encourage you to reach out to our experienced team for a consultation. We can help you understand how these changes might affect you and explore potential strategies to manage your property taxes.
