REQUEST FOR DECISION
DATE: September 14, 2022 Report No. FIN-22-013
TO: Laurie Hurst, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:
Title
2023 Permissive Tax Exemptions
End
RECOMMENDATION:
Recommendation
That Council give first, second and third readings to Tax Exemption (Non-Profit Organizations) Bylaw, 2022, No. 3086 as attached to Staff Report FIN-22-013.
Body
RELEVANT POLICY:
Council Policy FIN-16 Permissive Tax Exemptions
Community Charter S.224
STRATEGIC RELEVANCE:
This decision does not directly relate to a specific strategic initiative
BACKGROUND:
Section 224 of the Community Charter 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 posted on the public notice board and advertised during two consecutive weeks in a publication circulating within the municipality.
At meetings held on August 29, 2022 and September 2, 2022, the Local Grant Committee made recommendations relating to 2023 permissive tax exemptions and these have been incorporated into the bylaw attached to this staff report. Additionally, public notice of the intent to adopt the bylaw will be published in the Victoria News. A copy of this year’s public notice is attached for your information. Once adopted, the bylaw must be provided to BC Assessment in advance of its October 31, 2022 deadline.
Prior to this year, Council approved permissive tax exemptions applicable for the 2023 taxation year. The following organizations have already been approved for a partial or full exemption for the 2023 taxation year and were not required to submit an application this year.
City of Victoria
Esquimalt Anglers Association
Esquimalt Neighbourhood House Society
Habitat Acquisition Trust
Island Corridor Foundation
WITS Program Foundation
PEERS Victoria Resource Society
Boys and Girls Club Services of Greater Victoria
Compassionate Resource Warehouse
Island Community Mental Health Association
Victoria Association of Community Living
Victoria Operatic Society
Esquimalt Chamber of Commerce
ISSUES:
1. Rationale for Selected Option
Two permissive tax exemption applications were received in advance of the Township’s August 2022 deadline. Representatives from each organization were in attendance and answered numerous questions from the Committee. Following deliberations and a review of the submitted documentation and verbal responses, the Committee moved the recommendations that:
- the Mustard Seed Street Church be approved for a 25% permissive tax exemption during the 2023 taxation year
- the Fraternal Order of Eagles be approved for a 25% permissive tax exemption during the 2023 taxation year
The draft bylaw also includes exemptions for two separate facilities which are used for the purposes of housing the Township’s public library and archives. The library, while owned by the Township, requires inclusion in the bylaw as it is included as a strata unit on a separate property tax folio. The archives are now located in the space previously leased by the Chamber of Commerce. As the Chamber previously received an exemption for the same space, the bylaw has been amended to reflect this change.
2. Organizational Implications
There are no organizational implications of this decision.
3. Financial Implications
Upon adoption of the bylaw, the identified organizations will not be required to submit property taxes on the portions of land and improvement assessed values which will be exempted during the 2023 taxation year.
The following table illustrates the actual value of permissive tax exemptions provided by the Township during the 2022 taxation year. Additionally, based on the recommendations of the Local Grant Committee, the estimated 2023 municipal and total taxes that would be exempted 2023 are included. The estimated exemption amounts for 2024 and 2025 are also disclosed as required by the Community Charter. While the required advertisement includes three properties which are owned by the Township, these amounts have been excluded from the table.
|
|
Municipal Taxes |
Total Taxes |
|
2022 (Actual) |
$ 65,824 |
$ 118,474 |
|
2023 (Estimated) |
$ 67,140 |
$ 120,843 |
|
2024 (Estimated) |
$ 68,483 |
$ 123,260 |
|
2025 (Estimated) |
$ 69,853 |
$ 125,725 |
4. Sustainability & Environmental Implications
There are no sustainability or environmental implications of this decision.
5. Communication & Engagement
Under section 94 of the Community Charter, Council’s intention to adopt a permissive tax exemption bylaw is required to be made public. In accordance with these requirements, the notice of intent is scheduled to be published in the Victoria News for two consecutive weeks prior to bylaw adoption.
Upon adoption, copies of the bylaw will be provided to BC Assessment so that they may calculate and apply the exemptions for the 2023 taxation year. As well, all permissive tax exemption applicants will be notified of Council’s decision. They will also be notified that, in accordance with Council Policy FIN-16 Permissive Tax Exemptions, if they have been granted an exemption, they would be ineligible to apply for a 2023 local grant.
ALTERNATIVES:
1. That Council give first, second and third readings to Tax Exemption (Non-Profit
Organizations) Bylaw, 2022, No. 3086 as attached to Staff Report FIN-22-013.
2. That Council amend Tax Exemption (Non-Profit Organizations) Bylaw, 2022, No.
3086 and give first, second and third readings.