Municipal Tax Options in Canada for Registered Heritage Properties:
Tax Freeze: Charlottetown - the program allows for the tax rate to be frozen at the rate
prior to the renovation at
100% = 1st year,
80% = 2nd year,
60%= 3rd year,
40% = fourth year,
20% = 5th year.
Tax Rebate: Hamilton
the ten yr tax rebate is intended to renovate existing commercial and industrial buildings
in downtown area. $250, 000 budget over a 10 yr period.
Tax Credit: Winnipeg to support repairs, extension of life of structure, conserve
architectural design, etc. Calculated on the basis of 50% of the net private investment
made in eligible work. Max is $250,000/building.
Tax Exemption: Regina for up to eight years of the least of either:
a) a max of 50% of eligible work costs,
b) $250, 000, or;
c) the total municipal property taxes that would be payable in the 8 years immediately
following the year in which the exemption is approved by City Council.
Tax Abatement: Saskatoon
max of 50% to a max of $150, 000 over 10 years for Municipal Heritage Property
Conservation Work:
Tax Abatement: Saskatoon
max of 20% of eligible costs to a max of $30, 000 over 10 years for Community Heritage
Property Conservation Work:
Tax Exemption: Edmonton
after completion of substantial rehabilitation, a payment may be give in to owner equal
to any increase in the incremental portion of the property taxes for the designated
building for up to a max of 5 yrs.
Tax Exemption: Victoria
Tax exemptions up to 10 years for heritage designated buildings that convert upper
storeys to residential use.
Source: Ian Robertson, Architect, Municipal Heritage Incentives: A review of some
Canadian Programs with consideration for Fredericton: Executive Summary: July 2000.
Updated: Carla Ball, Halifax Regional Municipality, June 2002.
Appendix A:
Heritage Incentives in Canadian Municipalities
- Ian Roberston, Architect, July 2000 for City of Fredericton
Executive Summary
This report provides information on heritage incentive programs as exist in fifteen
Canadian municipalities, with respect to the component parts and application of each
program.
While there are some similar elements in the various programs, no two municipalities’
programs are exactly alike or are applied in the same manner. These differences may
be the result of disparate enabling legislation (i.e. provincial act and / or municipal bylaw), different approaches to heritage resource management, varying local economic
climates, available program funding, the number of possible eligible properties, the
particular district or unique condition the municipality is trying to address (i.e. downtown
core revitalization, withdrawal of government office tenants, seismic upgrading,
sandstone facade retention), all in addition to the general goal of heritage preservation.
Incentive Categories:
1. Grants:
The most prevalent incentive type, available in all but two of the fifteen programs
reviewed. Most grants are of a “matching” type (i.e. eligible costs born by the property
owner are matched 50:50 by the municipality) or to some other percentage ratio.
2. Tax Relief:
Based on the municipal component of property tax bills, this incentive type is available
in eight of the fifteen municipalities reviewed (in six provinces and one territory). There
are several types of property tax relief (credit, rebate, exemption), but they all have the
effect of reducing the costs of property ownership.
3. Loans:
Programs offering loans as an incentive were present in four of the fifteen municipalities
reviewed, all in the province of Ontario. Loans are typically made available at interest
rates lower than those offered by financial institutions.
4. Zoning Mechanisms / Development Controls:
Measures that involve an easing or relaxation of requirements that might otherwise
apply to a property, such as permit fast-tracking, zoning, subdivision, or parking by-law
relaxations, density bonuses, density transfers, variances or other by-law requirements.
5. Other Incentives:
Some municipalities offer incentives providing benefits for special circumstances such
as:
ï
ï
ï
ï
ï
ï
Building Code Equivalencies
Complimentary Public Works
Building Permit Fee Reduction / Elimination
Upgrade to Building Code Loan
Plaques and awards
Eligibility Criteria:
Incentives encourage and reward private sector participation in heritage preservation
activities. To ensure the long-term protection of a municipality’s investment in these
incentives, a number of administrative and regulatory components must also be in
place, such as:
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ï
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Heritage Designation
Development Standards / Design Guidelines
Heritage Easement.
Heritage Incentive Programs
Grant
_ 30% to max
of $2, 500
_50% to a
max of $9, 000
_ mini grantmax of $1000
(20% of total
costs) max.
grant - 20% to
a max of $25
000.
Design/maint
enance grant:
up to %50 max
of $500.
_ max of
$250, 000
_ max of
$10,000
Tax Relief
_tax freeze
Zoning
OtherCharlott
_ award
etown (32, 245)
Kingston 114,
_$10,000 at
4%
195
Saint John
(128, 100)
Regina 178,
225
_ tax
exemption8yrs
_ tax
abatement
Saskatoon 196,
811
_
_ to a max of 4
$15, 000
_ house
grants
Loan
_ exemptions
to 10 years.
_ building
permit fee.
Markham 208,
615
Victoria (318,
800)
London 336,
539
program percentage of
st
1 $15 000 of
project costs
over 10 yrs.
Building
incentive:
50% to a max
of $50, 000
_ $400,000
endowment
grant
_Max of $75,
000
_
_ rebate $250, 000
budget for 10
years.
Grant
_ ‘true color’
_ $20-30, 000
(50%) over
10yrs.
_ $20, 000 (10
yrs)
Tax Relief
Hamilton 490,
268
Loan
_
Zoning
OtherVancouv
er 545, 671
Winnipeg 619,
544
_ 50% to a
max of
$50,000
_
Calgary 878,
866
_tax credit
Edmonton 666,
104
_Exemption
_50% to
$75,000
_