Friday, October 19, 2012

Penticton businesses benefit from tax break

By Steve Kidd - Penticton Western News Published: October 18, 2012 2:00 PM
Starting next year, seven Penticton businesses will enjoy five years of tax breaks, thanks to a bylaw the city introduced in 2010 to spur economic development. The economic investment zone bylaw was introduced as a response to the ongoing economic downturn, attempting to stimulate new  construction or renovations in the city’s hotel and motel industry, downtown core and manufacturing and industrial areas through a set of incentives. Non-profit, low-income housing and green developments meeting certain criteria were also on the list to receive the incentives. Those incentives include up to a 100 per cent tax relief for a five-year period and reductions in building permit fees as well as development cost charges. However, the tax breaks only kick in upon successful competition of the project. Anthony Haddad, director of development services, presented council with a list of projects that have qualified under the bylaw, ranging from a $150,000 addition to a $1.12 million new building. Tax breaks for the improvements to these properties range from $1,000 annually for a pool addition to $7,000 annually for the construction of an Okanagan Avenue building. In total, the City of Penticton will be discounting the taxes for these seven businesses by $23,600 each year, for a total of $118,000 over the five-year term. (more)
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