Kelowna gives up $1.3 million in rental housing taxes | iNFOnews | Thompson-Okanagan's News Source

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Kelowna gives up $1.3 million in rental housing taxes

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September 24, 2018 - 4:45 PM

KELOWNA - Kelowna city council exempted 256 proposed new rental housing units from taxes today.

It’s called a “Revitalization” tax exemption, meaning the owners still pay municipal taxes on the land but are exempt from property tax on the building improvements for the next 10 years. The developers still pay other taxes, such as school board.

“We’ve estimated that’s a savings of about $40 to $50 per month for each of the units (in projects currently taking advantage of the program),” planner specialist Ross Soward said. “It’s not a huge amount but it gives a little incentive to get more rental housing.”

There are currently 580 units in the program and Soward says more applications are expected in 2019.

In return for the tax break, the three developers will have to sign contracts promising to keep the buildings in the rental pool for 10 years.

The proposed developments are:

  • Two projects with a total of 188 units proposed by Al Stober Construction Ltd. on Richter Street, just off Highway 97 in the Central Green development for a $94,000 annual tax impact.
  • 49 units planned by the Ki-Low-Na Friendship Society at 1759 Highway 33 in the Black Mountain area, saving $24,500 in taxes in each of the 10 years. Since there are already buildings on that land, the tax exemption is on the difference between the existing buildings and the new units.
  • 19 units for 554764 BC Ltd. at 200 and 220 Nickel Road in Rutland with a $9,500 tax impact per year.

The total amount of tax exemptions for the proposed developments is $128,000 per year.

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