TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: October 6, 2025 Report No. FIN-25-009
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: 2026 Permissive Tax Exemptions
RECOMMENDATION:
Recommendation
That Council give first, second and third reading to Permissive Tax Exemption Bylaw (Non-Profit Organizations), 2025, No. 3169.
Body
EXECUTIVE SUMMARY:
The Community Charter provides Council with the authority to grant permissive exemptions from property taxes for a period of up to 10 years. For organizations to receive exemptions, Council must adopt a bylaw and, prior to its adoption, ensure adequate notification in accordance with the Community Charter.
The Local Grant Committee reviewed a new application and made recommendations about exemption percentages and duration. These recommendations have been incorporated into the bylaw attached to this staff report. A bylaw must be adopted and submitted to BC Assessment prior to October 31 for the exemptions to take effect during the 2026 taxation year.
BACKGROUND:
The Community Charter includes sections which provide the means for various organizations and entities to receive exemptions from taxation if they meet certain criteria. Some of the exemptions are statutory in nature while others are at the discretion of local government. Permissive tax exemptions do not reduce the Township’s annual revenue requirements and, as a result, any exemptions granted increase the burden on other taxpayers within the Township.
Section 224 gives Council the authority to grant permissive exemptions from property taxes for a period of up to 10 years. Council must adopt a bylaw and, prior to its adoption, ensure notification of the proposed exemptions is adequately advertised within the municipality.
Previously Approved Exemptions
In October 2023 and September 2024, Council approved multi-year permissive tax exemptions for several not-for-profit organizations. The following annual exemptions were approved by Council, at varying percentages, until the 2027 taxation year.
Full Exemption
• City of Victoria - Portion of Barnard Park off Sea Terrace
• Esquimalt Angler’s Association
• Esquimalt Neighbourhood House Society
• Habitat Acquisition Trust
• Township of Esquimalt - Archives
• Township of Esquimalt - Library
• Township of Esquimalt - town square parking lot
• WITS Programs Foundation
75% Exemption
• Boys & Girls Club South Vancouver Island
• Compassionate Resource Warehouse Society
50% Exemption
• PEERS Victoria Resource Society
• Royal Canadian Legion Branch #172
25% Exemption
• Fraternal Order of Eagles
• Island Community Mental Health Association
• Mustard Seed Street Church
• Victoria Association of Community Living
• Victoria On Stage Musical Theatre Society
Under Permissive Tax Exemption Policy, organizations that meet the eligibility criteria may apply to the Township by August 31st of each year to be considered for an exemption from property taxes.
ANALYSIS:
As part of last year’s process, applications from the City of Victoria and the Island Corridor Foundation were granted a full exemption for the 2025 taxation year only. This meant that they would be required to apply again for a 2026 exemption.
Prior to the August 31 deadline, the Township received an application from the City of Victoria for the portion of 801 Devonshire Road. At a meeting held on September 11, 2025, the Local Grant Committee discussed the application and recommended a full permissive tax exemption for the 2026 taxation year only.
The Island Corridor Foundation failed to apply prior to the annual deadline. An application was received subsequent to the Local Grant Committee meeting and this documentation has been attached to this staff report. As it was not available for review by the Committee, it is being provided at this time for Council’s consideration.
OPTIONS:
1. Council could approve the recommendations of the Local Grant Committee and give first three readings to the permissive tax exemption bylaw attached to this staff report.
2. Council could make amendments to the permissive tax exemption bylaw and give first three readings to the bylaw as amended.
3. Council could request more information from staff regarding the permissive tax exemption applications or recipients.
COUNCIL PRIORITY:
Engaged and Healthy Community
FINANCIAL IMPACT:
Upon adoption of the bylaw, approved recipients will not be required to remit property taxes related to the exempted portion of land and improvements. The following table illustrates the actual value of 2025 permissive tax exemptions provided by the Township for those properties contained within the drafted bylaw. Additionally, based on the Local Grant Committee recommendations, the estimated 2026 exemptions from municipal and total taxes are included.
|
Year |
Municipal |
Total |
|
2025 actual |
$87,633 |
$160,067 |
|
2026 estimated |
$95,049 |
$173,642 |
Properties which are owned or municipally occupied by the Township are excluded from the table above.
The exemption values for the Island Corridor Foundation have not been included in the totals above. For 2025, the organization received a total exemption of $10,644, of which $5,171 related to municipal taxes.
COMMUNICATIONS/ENGAGEMENT:
A copy of this year’s public notice is attached to this report for your information, and this notice has been given in accordance with Public Notice Bylaw, 2025, No. 3169. Once adopted, the bylaw will be provided to BC Assessment in advance of its October 31, 2025 deadline, to be applied in the 2026 taxation year.
If any changes are made or if a permissive tax exemption is granted to the Island Corridor Foundation, the bylaw and the required advertisement would be amended to reflect Council’s decisiosn for the 2026 taxation year.
TIMELINES & NEXT STEPS:
The bylaw will be brought back to Council for adoption at the October 27 meeting. Subsequently, the bylaw will be provided to BC Assessment for application during the 2026 taxation year.
REPORT REVIEWED BY:
1. Deb Hopkins, Director of Corporate Services, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Permissive Tax Exemption (Non-Profit Organizations) Bylaw, 2025, No. 3169
2. 2026 Permissive Tax Exemption Application - Island Corridor Foundation
3. 2026 Permissive Tax Exemptions Ad
4. Council Policy FIN-16 Permissive Tax Exemptions