The B.C. government is providing enhanced relief for businesses by reducing most commercial property tax bills by an average of 25 per cent, along with new measures to support local governments facing temporary revenue shortfalls as a result of COVID-19.
“The COVID-19 pandemic is having significant financial impacts on all levels of government. It’s going to take hard work from both municipalities and the provincial government, but working together we will get through this,” said Selina Robinson, Minister of Municipal Affairs and Housing. “With these new measures, we are giving local governments new tools as a first step to ease their financial burdens and that of businesses in their communities now, and as we look to recovery in the months to come.”
The province is taking significant new steps to support B.C. businesses, non-profits and other organizations through the COVID-19 pandemic by:
- further reducing the school property tax rate for commercial properties to achieve an average 25 per cent reduction in the total property tax bill for most businesses, providing up to $700 million in relief. This enhances the 50 per cent reduction to the provincial school property tax rate that was originally announced for classes 4, 5, and 6 as part of B.C.’s COVID-19 Action Plan.
- Postponing the date that late payment penalties apply for commercial properties in classes 4,5,6,7 and 8 to Oct. 1, 2020, to give businesses and landlords more time to pay their reduced property tax, without penalty.
Responding to key concerns from local governments, the province is addressing cash flow and revenue shortfalls with new measures that include providing municipalities with greater flexibility to carry debt for an additional year.
Other measures include allowing local governments to borrow, interest-free, from their existing capital reserves to help pay for operating expenses, such as employee salaries. Government will also delay provincial school tax remittances until the end of the year to address cash flow issues. This will provide significant relief to local governments facing cash flow issues.
“Local governments across B.C. are working hard to support the implementation of COVID-19 orders, while ensuring residents have access to the services they need in these challenging times,” said Maja Tait, Union of B.C. Municipalities president. “The measures announced today provide additional relief to small business and will free up funds for local government. UBCM will monitor the impact of these measures on the state of local governments finances, and work with the province to ensure that local governments have the resources to sustain their communities.”
