Kitimat to Reduce Property Tax for Renovated Commercial Buildings

In an effort to rejuvenate commercial areas, Kitimat Council recently passed a bylaw providing tax exemption on improvements to "Class 6" buildings. The Commercial Zone Revitalization Tax Exemption Program encourages new construction, enhancement and beautification by offering a five-year tax exemption on the increase in assessed value to a maximum of $2,000,000. 

Eligibility is determined by location, assessment classification, type and value of construction. Projects within Kitimat's Revitalization Areas, which are "Class 6" improvements with a minimum construction value of $50,000, should qualify. "Class 6" is a term used by BC Assessment. Offices, retail stores, warehouses, hotels and motels all fall within this category. For an existing building, $25,000 or more must be spent on exterior improvements. Temporary buildings or structures will not be eligible. See a sample Tax Exemption Agreement for more information.

Property owners can apply by filing an application with Community Planning & Development. Department staff will receive applications and refer supporting documents to the License Inspector. Once eligibility is confirmed, a report and draft agreement are sent to Council for approval. Once approved, an agreement between the commercial property owner and the District of Kitimat is signed, and a Tax Exemption Certificate is issued.  A copy of the certificate is sent to BC Assessment. BC Assessment will determine what improvements will be exempt from tax for the next five years.

If you would like more information about the Revitalization Tax Exemption Program please contact Lyle McNish at 250-632-8911 or Community Planning & Development at 250-632-8910.