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.

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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).

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The Impact

• The biggest increases are expected for Class 5 (light industrial) and Class 6 (business) properties.

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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

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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.

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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.

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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.

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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.