Renovations and upgrades to character homes and commercial buildings in Moody Centre could be eligible for tax breaks next year if Port Moody council approves a new tax exemption bylaw.
The bylaw must pass a public notification period to get final adoption but it sailed smoothly through Tuesday's council meeting.
"It's taken a lot of research, understanding and learning," said Coun. Diana Dilworth. "I'm definitely in support of this."
The city expects up to four to five property owners a year will take advantage of a property tax break that would reduce their annual tax bill depending on the cost of the renovation and the assessed value of the improvements.
The tax breaks could last for between five and 10 years and would be for projects ranging from a new roof for a heritage house to the adaptive re-use of a commercial building to an addition and facade upgrades for an existing house.
"It's a relaxation of taxes that will assist in encouraging people to revitalize their homes," explained Tim Savoie, PoMo's director of planning and development services.
To be eligible for a tax break, properties must be either listed on the city's Heritage Register or located within the Moody Centre Heritage Conservation or Heritage Character Area. The exemption would require an agreement with the city setting out the conditions for the tax exemption, as well as a small administrative fee.
In a report to council, three hypothetical scenarios detail potential tax breaks:
a $15,000 roof replacement on a single-family home on the Heritage Register in Moody Centre Heritage Conservation Area could result in a $7,080 tax break over 10 years;
a $438,000 heritage house restoration and rezoning for commercial use could net a $33,365 tax break over a 10-year-term;
and a $120,000 addition and upgrade to a residential home in the Moody Centre Heritage Character Area could be eligible for a tax break worth $4,196 over five years.
If the tax exemption bylaw is adopted as expected, the program would begin in 2012 with a public awareness campaign on the city's website.
Once the bylaw is in place, property owners would be encouraged to contact the planning department to see if their projects would be eligible and what the tax break could be.
"That way, before they get into the project, they know what to expect," Savoie said.
EXEMPTIONS
Port Moody churches, environmental and arts groups, Eagle Ridge Hospital and the community police station will get property tax breaks totalling $1.1 million next year.
Most of the exemptions are statutory and required by the province but $82,000 is for permissive exemptions for property held by groups such as the Port Moody Heritage Society, the Royal Canadian Legion and Port Moody Ecological Society.
The value of the permissive exemptions approved by PoMo council Tuesday is $17,700 less than in 2011 because assessments dropped and some properties were reclassified.
dstrandberg@tricitynews.com
