Kelowna Offers Limited Tax Relief for Property Tax Spike

Kelowna Offers Limited Tax Relief for Property Tax Spike
May 29, 2024

Many Kelowna property owners are facing significant property tax increases due to soaring property assessments. However, a new municipal tax relief program announced by the city will only benefit a small number of property owners.

The program, estimated to cost $100,000, provides a one-time grant to eligible non-profit organizations that own multi-family residential buildings. To qualify, the property's assessed value must have increased by more than 30% in the past year. City staff estimates only 10-12 properties will meet these criteria.

In contrast, over 400 residential, business, and industrial properties in Kelowna saw their assessed values rise by more than 30%. While these owners may benefit from potentially higher future sale prices, they face immediate financial strain due to increased property taxes.

Council did not propose any direct tax breaks for the majority of affected property owners.  However, they are considering extending the property tax payment deadline without penalty from early July to November 1st.

Limited Scope of Relief Program

The narrow focus of the tax relief program has been emphasized by city officials throughout the process.  Council member Rick Webber acknowledged concerns about the program attracting a large number of applications, stating, "I suspect you would get a lot of applications if people heard there's a grant out there to ease their taxes."

Impact on Different Property Types

The May 1st council report identified Class 5 (light industrial) and Class 6 (business) properties as being particularly impacted by the increased assessments. The breakdown of affected properties includes:

  • 225 residential lots
  • 190 business lots
  • 5 light industrial lots

Your Kelowna Real Estate Partner

The Kelowna real estate market is experiencing significant changes. Coldwell Banker Horizon Realty can help you navigate these changes, whether you're a buyer, seller, or investor. Contact us today for a free consultation.

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