In a bid to diversify the economy and create jobs in Williams Lake, City council is considering an industrial revitalization tax exemption bylaw.
The bylaw, the City believes, would grow the industrial tax base, increase employment levels, and encourage environmentally friendly industrial development. It would pertain to property development in the north-end industrial area and the airport lands.
The bylaw’s specifics are yet to be determined; however, the tax exemption amounts could be based on meeting various qualifiers such as number of employees or cost of buildings.
A City report suggests that a development that introduces 50 new full-time jobs, for example, would get a higher percentage of exemption than one that generates 10; or, a property owner who builds a new plant worth $1 million would get a higher exemption rate than one worth $250,000. The report further outlines a term of five years with declining exemption amounts that would meet the City’s objectives of increasing the tax base and revenue to the City while serving as an incentive for new industrial development.
Mayor Kerry Cook called the move an “aggressive stance.”
“We want jobs and to diversify the economy,” she said.
“One of the ways municipal government can work to enhance the local economy is to provide a competitive investment climate and this bylaw would improve William’s Lake climate for industrial growth.”
Counsellors characterized the tax exemption as a step forward and a benefit to the community over the long term.
Coun. Sue Zacharias said: “This is a unanimous decision on council’s part to be bold and get the message out to the province and Canada that Williams Lake is open for business.”
Coun. Geoff Bourdon offered a tempered approach, noting what will determine the exemption’s success will be whether it generates new business in town. He suggested it should be a “living document” that can be “constantly improved and tweaked.”
The City has an existing Revitalization Tax Exemption bylaw that applies to the downtown area that doesn’t attach specific benchmarks to be met by business.
The Community Charter — provincial legislation that governs municipalities — gives cities the authority to exempt property from municipal property taxes. To do this the City must establish a revitalization program, enter into agreements with property owners and then exempt their property from taxation once all specified conditions of the programs and the agreement have been met. Exemptions may apply to the value of land or improvement or both.
To date, council has approved in principle the creation of an Industrial Revitalization Tax Exemption program.
