The Downtown Revitalization Tax Exemption Program provides a temporary municipal property tax exemption for eligible new construction and redevelopment projects in Downtown Courtenay.
The program is intended to encourage investment, support new housing and businesses, and strengthen the vitality of the downtown core.
The exemption applies to the increase in property value resulting from new construction or redevelopment.
At a glance
What it is: A time-limited exemption on the municipal portion of property taxes for the increased improvement value of your building after construction.
Who it’s for: Eligible new buildings and major re-developments within the designated Downtown Revitalization Areas (1 or 2) that meet program thresholds.
When to apply: At the same time as your building permit application.
How long it lasts: 5 years (standard) or 8 years with an approved Housing Agreement securing affordable units.
Watch this short informational video (redirects to YouTube)
100% exemption on the municipal portion of the Revitalization Amount
5 years for commercial, residential, or mixed-use projects
8 years if a Housing Agreement secures 10% of units (minimum 1) as affordable housing (30% below market)
Residential (4+ units): 100% exemption
Commercial: 50% exemption
5 years for eligible projects
8 years with a Housing Agreement (same affordability conditions as Area 1)
Frequently asked questions
With your building permit application.
Normally, applications must be submitted before a building permit is issued. In rare cases where extenuating circumstances prevented an on-time application, the City may accept a late submission. These applications must include:
A letter to the Director of Development Services explaining and substantiating the circumstances.
A report from a Professional Quantity Surveyor (or equivalent) estimating the construction value for the remaining improvements.
Applications cannot be considered if the project has already received final occupancy.
Eligible new residential, commercial, or mixed-use developments, and major renovations that meet the thresholds within Areas 1 or 2.
The “Revitalization Amount” equals the difference between:
the assessed improvement value (buildings only) before construction (baseline is the calendar year immediately prior to construction), and
the assessed improvement value in the year of project completion.
For your exemption to apply in the next tax year, the City must submit the signed exemption agreement and certificate to BC Assessment by October 31 of the previous year.
Example: To receive an exemption in 2026, all documents must be submitted to BC Assessment by October 31, 2025.
Exempt
Municipal property taxes on the increase in assessed improvement value (“Revitalization Amount”).
Not exempt
Land value
School taxes
Regional District levies
Hospital and library taxes
BC Assessment Authority and Municipal Finance Authority levies
City utilities, user fees, Development Cost Charges (DCCs), and parcel taxes
If your project receives final occupancy before September 30, the exemption will apply to the next taxation year, as outlined in your agreement.
Example: If you receive occupancy on Sept. 15, 2025, the exemption would begin in the 2026 tax year.
5 years (standard) or 8 years with a qualifying Housing Agreement.
Yes. The exemption runs with the property, subject to the agreement’s terms.
