REQUEST FOR DECISION
DATE: September 22, 2015 Report No. FIN-15-016
TO: Laurie Hurst, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:
Title
2016 Permissive Tax Exemptions
End
RECOMMENDATION:
Recommendation
That Council give first, second and third reading to the Tax Exemption (Non-Profit Organizations) Bylaw, 2015, No. 2857
Body
RELEVANT POLICY:
Council Policy FIN-16 Permissive Tax Exemptions
STRATEGIC RELEVANCE:
This decision does not relate to any specific strategic objective
BACKGROUND:
Section 224 of the Community Charter gives Council the authority to grant permissive assessment exemptions from property taxes for periods of up to 10 years. Council must pass a bylaw and, prior to adoption of the bylaw, notice of the proposed exemptions must be posted on the public notice board and advertised once each week for two consecutive weeks in a newspaper circulating within the municipality.
On September 17, 2015 the Local Grant Committee made recommendations, relating to 2016 permissive tax exemptions, for approval by Council. These recommendations have been incorporated into this new bylaw. Additionally, public notice of the intention to adopt these bylaws will be published in the Victoria News. A copy of this year’s public notice is attached to Staff Report No. FIN-15-016 for your information. Once adopted, this bylaw must be provided to the BC Assessment Authority in advance of the November 6, 2015 deadline.
ISSUES:
1. Rationale for Selected Option
The following not-for-profit organizations made permissive tax exemption applications for the 2016 taxation year and the Committee has recommended the approval of their application for a one year exemption:
• Boys and Girls Club Services of Greater Victoria
• Island Community Mental Health Association (McCauley Lodge)
• City of Victoria (portion of Barnard Park off Sea Terrace)
• Compassionate Resource Warehouse
• Esquimalt Anglers Association
• Esquimalt Neighbourhood Society
• Habitat Acquisition Trust
• Island Corridor Foundation
• PEERS Victoria Resource Society
• Rock Solid Foundation
• Society of Saint Vincent de Paul of Vancouver Island
• Victoria Association for Community Living
• Victoria Operatic Society
• 2483 PPCLI Royal Canadian Army Cadet Corps
The Committee also recommends that the application submitted by the Esquimalt Dockyard Branch 172 of The Royal Canadian Legion be denied. This decision was made after referring to the Council Policy which requires applicants to appear before the Committee during the first year of a new Council. No representative from the Legion was in attendance at the meeting to speak to their application or to answer questions from the Committee.
2. Organizational Implications
There are no organizational implications of this decision
3. Financial Implications
Upon approval of these permissive tax exemptions, the identified organizations will not have to submit 2016 property taxes for their applicable properties. Based on the properties included in the Local Grant Committee recommendations, the total taxes that would be payable on these properties in 2016 if they were not to be exempted are outlined below. The estimated amounts for 2017 and 2018 are also provided as it is a requirement, under the Community Charter, to disclose this information within the formal notifications.
|
|
Municipal Taxes |
Total Taxes |
|
2016 |
$ 89,477 |
$ 155,263 |
|
2017 |
$ 91,356 |
$ 158,524 |
|
2018 |
$ 93,366 |
$ 162,012 |
4. Sustainability & Environmental Implications
There are no sustainability or environmental implications of this decision
5. Communication & Engagement
Under section 94 of the Community Charter, municipalities are required to make public Council’s intent to pass the bylaw attached to this report. In accordance with the requirements, the notice of intention to pass the bylaw is scheduled to be published in the Victoria News for two consecutive weeks in October.
Additionally, upon adoption, copies of the bylaw with be provided to the BC Assessment Authority so that they may calculate and apply the exemptions during the 2016 taxation year.
Subsequent to adoption of the bylaw, all permissive tax exemption recipients will be notified in writing whether or not their application has been approved. Within this correspondence they will also be notified that, in accordance with Council Policy Permissive Tax Exemption Policy FIN-16, if they are granted an exemption they will be ineligible to apply for a 2016 local grant.
ALTERNATIVES:
1. That Council give first, second and third reading to the Tax Exemption (Non-Profit Organizations) Bylaw, 2015, No. 2857.
2. That Council amend the Tax Exemption Bylaw and give first, second and third reading.