Council approves tax exemption bylaw

Merritt city councillors unanimously approved a new revitalization tax exemption bylaw aimed at rewarding new development in Merritt without any argument during a regular council meeting, Jan. 10.

The bylaw, which will offer a tax incentive to both new businesses and expansions to existing businesses by phasing in taxation over a four-year period, was previously delayed several times after councillors expressed confusion with some of the wording.

This time, however, the process was smooth as councillors abandoned the previous bylaw and gave the new revitalization tax exemption bylaw three readings.

Councillor Clara Norgaard described the proposed bylaw as a good way to revitalize Merritt’s downtown core and Councillor Norm Brigden said it was an opportunity to bring higher density accommodations to the community.

Brigden had previously expressed concern with the application process and suggested council be able to approve projects for exemption prior to construction. Under the revised bylaw, businesses would apply for the exemption, undergo an administrative review and then report to council for approval subject to the final inspection. Businesses will be issued an exemption certificate once their developments pass the inspection.

In a report to council, Economic Development Manager James Umpherson said that the purpose of the tax exemption bylaw is to foster economic growth by providing incentives to eligible business owners.

“We wish to encourage business in Merritt to expand over the next few years as economic opportunities present themselves,” said Umpherson. “This new initiative will provide the City of Merritt a competitive advantage for our community in attracting development that will ensure growth that is balanced and progressive.”

While councillors were all in favour of the bylaw, at least one Merritt resident expressed concern with the proposed tax exemption.

In an email to Umpherson, Mike Lorette said: “I think this bylaw would burden already heavily over taxed home owners in Merritt with the bill. This cannot be accepted.”

Council acknowledged the concern, however, Umpherson’s report says there will be no costs to the City of Merritt by offering an exemption over the four-year period.

“Land tax will continue to be collected,” said Umpherson. “The taxes on the improvements will be phased in over a four-year period. For example, if a $100,000 assessed property has a $20,000 improvement, only the $200,000 improvement value is tax exempt.”