M.L. council mulls downtown and residential tax incentives
To change the tax breaks, or not to change the tax breaks, that is the question.
As a means of enticing growth and investment in the city, officials recently took a look at the various tax incentives including residential and commercial spaces. This information was shared with the mayor and council at this week’s regular meeting, and a lengthy discussion was held about possible options for updating them.
The commercial tax incentive bylaw, which currently only applies to the downtown area, grants a three-year rebate on the municipal portion of taxes and is based on the increased assessment value from either a renovation or new construction. The rebate amount is 100 per cent in the first year, 75 in the second, and 50 in the third.
The residential bylaw currently applies only when an older house is demolished and replaced with a new one, and is tiered in the same three-year manner as the commercial bylaw. Its purpose is to encourage infill residential development rather than expansion of new subdivisions, which require substantially more infrastructure investment.