Council approve over $613K in permissive tax exemptions

$613K property tax breaks

Close to 200 Penticton properties have been approved for next year’s permissive property tax exemptions.

Council reviewed the applications during Tuesday’s meeting. These properties have to meet certain criteria in order to qualify, such as providing support services, programs and housing to at-risk members of the community.

Exemptions require both municipal and provincial approval.

The 181 properties are estimated at a total value of $613,884. This value is derived using the 2021 taxable assessment value and 2021 property tax rates, and represents 1.71 per cent of the 2021 total budgeted general municipal tax requisition.

In 2021, the tax exemption program granted $588,356 to local properties. In 2019, council voted to cap permissive tax exemptions for the first time at 1.68 per cent of the city’s total annual property tax intake.

But they reversed that decision after deciding charities shouldn't pay a small portion of their annual property tax bill.

“The need for permissive tax exemptions in Penticton has a long history and council was pleased with the recommendation made by staff," Penticton Mayor John Vassilaki said in a press release.

“The authority to grant permissive tax exemptions allows municipalities to achieve various goals, including supporting non-profit groups that provide services to the city and encouraging development that benefits the community as a whole.”

More Penticton News