A business property owner can apply for a rebate of taxes if the property is vacant.
If you were asking Grace Marsh this question she could give you all the details.
The formula is much changed since the original conversion to market value assessment.
I would not attempt to provide an expert explanation. All I know is, the original principle of current market value being the measure of assessment is not universally applied.
CMV started out as a response to complaints from business and commerce about the injustice of the differential between theirs and residential assessment.
Then their complaint was about keeping the value current. Residential properties are regularly updated to current value but municipalities can "phase" increases for industry and commerce.
The principle that taxes should always be clear and understandable has also long been abandoned.
Evelyn - you are correct. If a commercial or industrial classed building is fully or partially vacant, the owner can apply annually for a rebate that equals between 30 and 35% of the tax levied for the vacant portion. There are a number of other rules contained within the regulation but this is generally the concept.
ReplyDeleteIn terms of the business properties paying CVA taxes, they have enjoyed a system of capping ever since 1998 and now also have a 4 year phase in of any assessment increases. It's all based on what they paid the prior year and started with the base of 1997's business occupancy tax & real property tax.
Thanks for mention - most people's eyes glaze over when I talk taxes!
Enjoy your inaugral meeting this week.
Regards,