TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: September 14, 2026 Report No. FIN-26-017
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: 2027 Permissive Tax Exemptions
RECOMMENDATION:
Recommendation
That Council give first, second and third readings to Permissive Tax Exemptions (Non-Profit Organizations) Bylaw, 2026, No. 3194
Body
EXECUTIVE SUMMARY:
The Community Charter provides Council with the authority to grant permissive exemptions from property taxes, through bylaw, for a period of up to 10 years. This bylaw attached to this staff report incorporates Council’s decisions regarding the approved 2027 permissive tax exemption recipients and exemption levels. A bylaw must be adopted and submitted to BC Assessment prior to October 31 for the exemptions to take effect during the 2027 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.
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.
While permissive tax exemptions do not involve a direct cash payment to recipients, similar to local grants, they do have a financial impact. As the Township’s required taxation revenue is established in the financial plan, any approved exemptions will result in an increased burden being shifted to all other taxpayers within the municipality to make up for the amounts being exempted.
Previously Approved Exemptions
In October 2023 and September 2024, Council approved multi-year permissive tax exemptions for several non-profit organizations. The following annual exemptions were approved by Council, at varying percentages, for application in the 2027 taxation year.
Full Exemption
City of Victoria - Portion of Barnard Park off Sea Terrace
City of Victoria - 801 Devonshire
Esquimalt Angler’s Association
Esquimalt Neighbourhood House Society
Habitat Acquisition Trust
Island Corridor Foundation
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
ANALYSIS:
The 2027 taxation year represents the final year of Council’s multi-year approval of permissive tax exemptions for several non-profit organizations. All organizations currently receiving an exemption, as well as any new applicants, will be required to submit a new application prior to August 31 next year for a potential 2028 permissive tax exemption. After the deadline, the Local Grant Committee will convene to review all submissions and make recommendations to Council about the approval of any applications.
OPTIONS:
1. That Council give first, second and third reading to Permissive Tax Exemptions (Non-Profit Organizations) Bylaw, 2026, No. 3194.
2. That Council amend the Permissive Tax Exemption Bylaw and give first three readings to the bylaw, as amended.
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 2026 permissive tax exemptions and the estimated 2027 amounts for those properties contained within the draft bylaw. Additionally, the estimated 2028 and 2029 exemptions from municipal and total taxes have been calculated and will be publicly advertised as required by the Community Charter. These last two years have been estimated assuming there are no new approved applications or changes to the existing exemption percentages.
|
Year |
Municipal |
Total |
|
2026 Actual |
$104,875 |
$191,424 |
|
2027 Estimated |
$112,216 |
$204,824 |
|
2028 Estimated |
$120,071 |
$219,162 |
|
2029 Estimated |
$128,476 |
$234,503 |
Properties which are owned or municipally occupied by the Township are excluded from the table above.
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, 2024, No. 3136. Once adopted, the permissive tax exemption bylaw will be provided to BC Assessment in advance of its October 31, 2026, deadline, to be applied to the applicable property tax folios in the 2027 taxation year.
If any amendments are made to the bylaw, the required advertisement would also be updated to reflect Council’s decisions for the 2027 taxation year.
TIMELINES & NEXT STEPS:
The bylaw will be brought back to Council for adoption at the September 28, 2026, meeting.
REPORT REVIEWED BY:
1. Deb Hopkins, Director of Corporate Services, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Permissive Tax Exemptions (Non-Profit Organizations) Bylaw, 2026, No 3194
2. 2027 Permissive Tax Exemptions Ad
3. Council Policy FIN-16 Permissive Tax Exemptions