Revitalization Tax Exemption Program

City Council has put into place a Revitalization Tax Exemption Program to encourage redevelopment and revitalization in our community's downtown. The program incentivizes construction or redevelopment of buildings used for commercial, light industrial or multiple family residential purposes by exempting them from municipal property taxes for a set period. See below for additional details on the program. 

For the Revitalization Tax Exemption Form and Bylaw, see below:

Revitalization Tax Exemption Bylaw 3553, 2024

Revitalization Tax Exemption Application Form

Revitalization Tax Exemption Schedule C Agreement

Preapplication meetings can be scheduled by contacting the City's Chief Financial Officer, Corinne Bomben at corinne.bomben@princerupert.ca or by calling (250) 627 0935.

What are the available tax exemptions? 

New Builds

A 10 year graduated tax exemption (see table) on non- market tax increase for construction of a new building is as follows:

• New Commercial/Industrial Buildings: as a result of new developments in the Downtown Core Revitalization Area, or Industrial Revitalization Area.
• New Multi-family Residential Buildings: as a result of new developments in the Downtown Core Revitalization Area. 

Existing Buildings

The amount of Tax Exemption for redevelopment of existing Buildings are as follows:

• Redeveloped Commercial Buildings: five years at 100% of non-market tax increase as a result of redevelopment that has exterior building improvements valued at least $50,000.
• Redeveloped Multi-family Residential Buildings: five years at 100% of non-market tax increase as a result of redevelopment that has exterior building improvements valued at least $50,000.

What is a non-market increase?

NON-MARKET INCREASE means the change as determined by the British Columbia Assessment Authority under the Assessment Act, to the improvements portion of a property’s assessed value, after issuance of a building permit for construction that is not due to real estate market fluctuations.

What improvements are eligible for the tax exemption?

An eligible improvement means:

• A new Building that is constructed on Eligible Land in the Revitalization Area; or
• An existing Building on Eligible Land that is being redeveloped and has exterior building improvements valued at least $50,000.

Eligible Land means a Parcel within the Downtown Core Revitalization Area or the Industrial Revitalization Area, as identified in the maps below.

How long is the Revitalization Tax Exemption Program in effect?

The program is in force between January 1, 2025 and December 31, 2029.

Can I apply for the program after I have started work?

No, the program must be applied for and an agreement entered into prior to any construction work beginning.  Application must occur prior to a building permit being obtained.

Is there a fee to apply for the program?

Yes, an application fee of $200 must be received prior to any application being reviewed.

What is the process to apply for the Revitalization Tax Exemption Program?

Please see Application Process in the Revitalization Tax Exemption Program Bylaw No. 3553, 2024. All parts must be completed and submitted.  Use the section as a checklist.

When will my tax exemption start?

For an exemption to take effect in the immediately following calendar year, a Tax Exemption Certificate must be issued by October 31.  Any Tax Exemption Certificate issued between October 31 to December 31 will result in an exemption 2 calendar years after the certificates issuance. 

How do I get a Tax Exemption Certificate?

Conditions of the Revitalization Tax Exemption Agreement must be met inclusive of obtaining an Occupancy permit within 24 months of a Revitalization Tax Exemption Application being approved.

Downtown Tax Exemption Areas

Note: Eligible exemptions in the Midtown District are limited to multi-family residential and existing commercial redevelopments.

Industrial Tax Exemption Area