The City of Penticton is continuing its policy of providing tax exemptions to local churches and numerous non-profit agencies.
On Tuesday, Penticton Council unanimously supported a staff recommendation to approve its permissive tax exemption policy as it granted $415,115 in permissive tax exemptions to 98 qualifying candidates.
The City’s Permissive Tax Exemption Policy states that exemptions will only be provided to those organizations who, by not receiving it, could have their services to the community seriously impaired, said revenue supervisor Amber Coates in a presentation to Council Tuesday.
Examples of typical exemptions include, places of worship, private schools and hospitals.
This bylaw was approved by Council starting back in 2013, said Coates.
The Permissive Tax Exemption Policy endorsed by Council requires applicants to provide financial information, proof that the organization is in good standing with the Society Act and limits the exemption to the principal use of the property and not the non-profit status of the organization, she said.
It also requires the exemption to be pro-rated if necessary if a portion of the property is commercial use.
The policy also states that exemptions will only be provided to those organizations that will experience financial hardship, she said.
Financial hardship is defined such that not receiving a Permissive Tax Exemption could seriously impair services to the community at large or impose significant hardship on the organization itself and the users of the facility, she said.
Exemptions already awarded for the 2019 tax year for these applicants are equivalent to $116,076 in taxation revenue, estimated using 2018 property assessment and general municipal tax rates.
These applications were received and approved in 2016 for a three-year period.
This is the last year for properties in this category and next year they will be reapplying for consideration for the 2020 – 2022 tax years.
Just under 40% of the estimated amounts were given to housing societies or services, 23% for sports and recreation societies or services, 10% for arts and historical societies or services, 18% for community wellness societies or services and 11% on other services such as the Salvation Army and local SPCA, she said.
When you favor in multi-year exemptions approved in 2016, the total estimated amount in tax exemptions forecast for 2019 is just over $531,000, she said.
There are only two new applicants requesting consideration for 2019, including the Community Foundation of the South Okanagan Similkameen and Penticton & District Society for Community Living.
The new applicants represent the youth sector as well as development in the affordable housing sector, but do represent a significant combined ask of approximately $30,000 above last year, she said.
The longstanding application for the Army, Navy & Air Force Veterans in Canada, Unit 97 was not requested this year as the local unit has been dissolved.
All applicants this year meet the requirements of the Community Charter, and upon analysis of their individual working capital, meet the Permissive Tax Exemption Policy requirements as well, she said.
