“My business isn’t going to go out of business based on a $15,000 additional cost, but it’s getting harder and harder,” said Fraser.“People might think, ‘let’s just spread that amount over 12 months, but if you have a profit margin of five per cent, then you need to sell about $300,000 more,” to pay for that additional $15,000 in property taxes.Article contentThe provincial government is offering impacted properties a one-year only temporary exemption on the School Tax they pay.
Since around 2017, some Vancouver commercial property owners, looking to reduce property taxes, which are typically borne by their tenants, have gone through the courts to get so-called “split assessments.” “At all of these businesses, the leases are triple-net leases with the business paying the taxes,” in addition to rent and maintenance costs, said Tung.
Tung said the latest change comes after two cases that came before the Property Assessment Appeal Board in the past year and a half.