After numerous small businesses, arts organizations, and nonprofits have been struggling with or shutting down due to rising property taxes for years, the provincial government announced today (January 17) that interim tax relief will be proposed while a long-term solution is being developed.

The B.C. Ministry of Municipal Affairs and Housing stated that as the legislation remains under development, full details aren’t available yet, but it will be introduced in the spring.

The proposed legislation will enable municipalities to offer property-tax relief to small businesses and organizations identified as paying high property taxes.

Increasing real-estate values and commercial lease terms have led to rising property taxes, including triple-net leases.

Municipal Affairs and Housing Minister Selina Robinson explained in a news release that the interim legislation will provide property-tax relief for the 2020 tax year while a province-wide solution is being developed, and it would remain in effect for a maximum of five years.

The current assessment system evaluates properties based on “highest and best use”, meaning that property with a single-storey commercial building may be valued the same as a multistorey residential tower. Accordingly, tenants may face an increased tax burden when an unexpected spike in value occurs, such as when zoning or official community plans change.

Under the interim legislation, municipalities would be able to exempt part of the value of a subset of commercial properties from taxes.

Further details will be provided by the provincial government in the next few weeks.