Barrie’s tax break for vacant commercial and industrial land has run out of road.
Council gave final approval Monday night to a motion which eliminates vacant land tax discounts this year, rather than phasing them out during the next two years.
The tax discount is 30 per cent for vacant commercial property, 35 per cent for vacant industrial land.
The motion passed 6-5 in general committee April 19, but passed without discussion Monday.
City treasurer Craig Millar has said the effect of eliminating the discounts doesn’t change the total amount of commercial or industrial property tax collected, it shifts the tax burden within the commercial/industrial tax class. Vacant property owners will pay more and occupied properties less, he said.
Eliminating the discounts in 2021, compared to a phase-out, reduces total tax charges on occupied commercial/industrial buildings by $163,453 on 1,830 properties, while increasing total tax charges on excess and vacant land by $720,232 on more than 386 properties.
Of the increase on vacant land, $376,647 is related to the industrial vacant land, representing more than 177 properties.
Discounts on vacant commercial and industrial land used to be mandated by the province until a few years ago.
