Heritage Property Tax Relief FAQ

What is the Heritage Property Tax Relief Program?

In 2001 the Provincial government passed legislation to create on-going property tax relief for heritage properties. Under the new law, the relief can range anywhere between 10% and 40% of property taxes levied. Each municipality can tailor the program to meets its own needs and priorities. The City of Peterborough has chosen to offer the full 40% to residential owners and 20% to commercial owners.

Why was the heritage property tax relief program introduced?

The Province recognized that historic buildings sometimes have higher maintenance and repair costs. The program is designed to support owners who have chosen to protect their buildings through heritage designation. This is the most generous heritage incentive program ever introduced in Ontario and is designed to encourage good stewardship and private investment in our heritage.

Why is the City involved in this program?

The City has a long history of support for community heritage but hasn’t always had the tools to help owners recognize and protect it. The Heritage Property Tax Relief Program will encourage preservation and improvement of our rich landscape of cultural and architectural landmarks. The City also realizes that well cared for historic buildings form a vital backdrop for making Peterborough a vibrant and inviting place to be.

Who is eligible for the program?

There are two requirements set by the Province for participating in the program:

The building must be designated under the Ontario Heritage Act as either a stand-alone property or as part of a heritage conservation district.

The owner of the property owner must sign a heritage conservation easement agreement in which they agree to maintain the property to a recognized preservation standard.

While it gets the program up and running, the City has added two other eligibility requirements. For the first five years:

Properties must be located within the central area of the City as defined by 'Schedule J' in the Official Plan. This area takes in the downtown core of the city from Park Street on the west to the river on the east and from Perry and Crescent Streets on the South to McDonnel Street on the north (See the map attached). In addition, properties along Hunter Street East as far as Armour Road are also eligible.
The City is also including designated properties anywhere in Peterborough if they were designated prior to the passage of this program.

Are there ways that may allow my participation in the program?

The City of Peterborough may consider exceptions for significant heritage properties on a case-by-case basis. In 2007, the City will review the program and may decide to expand it to include a larger part of the city.

The program only covers the "Schedule J" area … how come?

This is the oldest part of Peterborough and has a wealth of historic properties including the downtown core. Initially, City Council would like to use the program to help revitalize this area of the City.

Will it cost me anything to apply to the program?

Designation is free but it should be noted that designation of a property does not guarantee acceptance into the Heritage Tax Relief Program. There is an application fee and a fee for the mandatory inspection of the property prior to renewal. The fees are:

$200 application fee for Residential properties;
$400 application fee for Commercial properties;
$250 inspection/renewal fee payable every five years.

How much is the rebate worth?

The City of Peterborough will provide a forty percent (40%) tax rebate for eligible residential properties, and a twenty percent (20%) rebate for eligible commercial properties.

How is the Tax Relief Assessed?

The tax relief applies to the eligible heritage building or structure and the lands associated with it. With most designated properties the entire property is included in the legal description so the tax relief will be calculated against the entire property tax bill. For example: if you pay $2200.00 in property taxes you will receive a rebate of approximately $880.00 or 40% of the total assessment. The relief will show up as a deduction on your tax bill.

I lease commercial space in a downtown building and...?

The program is directed at property owners since they pay the property taxes to the City. The program allows landlords to retain rebate funds received since the program assists property owners with their building maintenance expenses. Landlords certainly have the option of passing the tax rebates along to their tenants and might choose to do so if the tenant is responsible for the property's maintenance and preservation costs.

Does this mean I have to restore the property or just maintain it?

The heritage elements noted in the designation by-law determine what is covered by the easement. You are not required to restore your property under this program. However the City is eager to help owners who wish to restore properties with their tax savings to do so. PACAC is an excellent resource for guiding owners in researching building histories and finding heritage supplies and services.

How much is this program going to cost taxpayers, and where is the money coming from to provide the rebates?

The municipal portion of the rebates will be covered by the City from the general tax levy. The education tax portion will be covered by the Province of Ontario. The rebates have already been budgeted, and therefore the program will not result in a tax increase.

How much is this program going to cost...?

How long will the rebate program last?

The program will provide on-going relief, so long as the property owner complies with their obligations under the terms and conditions of the program.

Are there any other grants or financial incentives available for heritage property owners?

Currently, incentives for heritage tax property owners vary widely from region to region. The province of Ontario does provide a provincial sales tax rebate on building materials used in the restoration of historic structures.

Are there any other grants or financial incentives available...?