Merritt reworking revitalization tax exemption

The City of Merritt is repealing its current revitalization tax exemption with the plan to rework the policy.

“This Bylaw creates various exemptions for land, including one regime for the downtown core (the “Specific Revitalization Area”), and another for the rest of the City (the “General Revitalization Area”), and creates an application process for eligible developers to request exemption from local taxes for a four year period following development, at a rate of full exemption in the first year, 75% exemption in the second, 50% exemption in the third, and 25% exemption in the final year,” wrote Director of Corporate Services Greg Lowis.

“Staff do not believe that the existing program is responsive to Merritt’s needs, or that it represents good value for the taxpayer. While the existing regime has provided tax exemptions for worthwhile projects, such as the Comfort Inn, the Best Western, and Merritt Green Energy projects, staff feels that encouraging revitalization could be better addressed through setting attractive tax rates for industrial land (which Council commenced in 2021), and by creating a much more targeted, downtown focused revitalization tax exemption,” added Lowis.

Last week, Council voted unaminously to repeal the current exemption policy and directed staff to draft a new policy with an emphasis on downtown revitalization.

“Staff feel that repealing this bylaw and directing a more targeted revitalization tax bylaw to be created, Council will be able to ensure that tax exemptions better meet their intended goal of revitalizing the economy, while ensuring that tax dollars are used as efficiently as possible,” concluded Lowis.

All of the current exemptions will remain in effect.