Step 1: Apply Online
Complete the online application and attach a description and/or drawings for your proposed build.
Step 2: City Approval
The City reviews your application and sends an approval letter.
Step 3: Apply for Permits
Apply for (and receive) the required Development Permit and Building Permit before starting work.
Step 4: Complete the Project
Begin construction after approval and permits are in place.
Step 5: Tax Abatement Program
When Building Inspector confirms the project has reached substantially complete. The property is entered into the Tax Abatement Program and the city will send a letter confirming the abatement years.
These improvements can be approved if they are on the applicant/owner’s property:
New construction and building additions (including changes for barrier-free accessibility)
Parking lot resurfacing (must include storm water management)
Landscaping
Lighting
Trash enclosures
Site signage
Curbing
Sidewalks / walkways
Decorative fencing
The tax abatement is applied to the new assessed improvements created by the project—so the program focuses the benefit on the added assessment that comes from the new work (in most cases, the taxes on existing building and land assessment stays the same).
Abatement Schedule
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Year 1: 100%
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Year 2: 80%
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Year 3: 60%
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Year 4: 40%
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Year 5: 20%
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Year 6: return to full taxes
Note: Abatements of increased assessed improvements are capped at $500,000.
What “assessed improvements” means:
“Assessed improvements” means the increase in assessed value that comes from the new work (the improvement), such as a building addition, new construction, and certain eligible site work. Under the policy, the abatement applies only to the additional assessment created by that work.
Examples
Example A: Assessment goes from $500,000 to $700,000
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Before: $500,000
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After: $700,000
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Increase (assessed improvement): $200,000
The abatement is calculated on the $200,000 increase, following the phased-in schedule.
So, in Year 1, the abatement is 100% on that increased portion (meaning the taxes on that increased portion are reduced by the full abatement amount for that year). The Notice of Taxes will look similar to the the amount of tax paid the previous year. In later years, the abatement steps down based on the schedule.
Example B: Assessment goes from $500,000 to $1,200,000
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Before: $500,000
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After: $1,200,000
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Increase (assessed improvement): $700,000
Because the program has a $500,000 cap, the abatement applies to:
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Eligible (capped) increase: $500,000
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Not abated (over the cap): $700,000 − $500,000 = $200,000
That means the program abates up to $500,000 of the increase (phased in by year). The remaining $200,000 increase is taxed normally from the start. Your Notice of Taxes will show an approximant increase of 40% over the previous year's.
When does the abatement begin?
The tax abatement starts the year following Substantial Completion (90 days after the vapour barrier is approved). Inorder to receave the maximu abatement:
- If the Substantial Completion is reached on or before October 1, the abatement starts the next January 1.
- If the Substantial Completion is approved after October 1, the abatement starts January 1 of the year after next.
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Example: Occupancy Permit approved October 20, 2026, the abatement starts January 1, 2028.
