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Council adopts permissive tax bylaws
Estimates put total exemption at almost $300,000
by Laura Walz | editor@prpeak.com
City of Powell River council adopted five bylaws at a special council meeting on October 29 dealing with permissive tax exemptions.
The total tax exemption for 2010 is estimated to be $298,025.
The Community Charter lists two classes of exemptions, statutory and permissive. Examples of statutory exemptions, which receive 100-per-cent exemption, include public schools and grounds, churches and the land underneath the church, hospitals and public libraries.
Permissive tax exemptions are allowed for a variety of not-for-profit organizations and for some properties which are held by organizations that receive statutory exemptions, such as church halls or land surrounding a church. Permissive tax exemptions are at the discretion of city council and may range from zero to 100 per cent.
The city’s current practice is to prepare five separate bylaws annually to grant the permissive tax exemptions. The bylaws must be adopted by council on or before October 31 each year and apply to taxation in the next year.
Councillor Chris McNaughton said council will be discussing permissive taxes as part of the budget process for 2010. “Other communities around British Columbia, the lower coast in particular, are also struggling with the permissive tax exemption, both the benefit to the community and the impact on the community,” he said.
In April 2005, city council adopted a policy which outlined a plan to phase in taxes for groups that applied for permissive tax exemptions. By 2010, 70 per cent of the exemption for land around churches would have been eliminated.
In the face of stiff opposition, councillors rescinded the policy and adopted a new policy in September 2007. It outlined which organizations are eligible to apply to have their taxes reduced, as well as provides evaluation guidelines and a procedure.
The policy states the total amount to be set aside for permissive tax exemption will be set by council annually during the development of the financial plan.
The total tax exemption for 2010 is estimated to be $298,025.
The Community Charter lists two classes of exemptions, statutory and permissive. Examples of statutory exemptions, which receive 100-per-cent exemption, include public schools and grounds, churches and the land underneath the church, hospitals and public libraries.
Permissive tax exemptions are allowed for a variety of not-for-profit organizations and for some properties which are held by organizations that receive statutory exemptions, such as church halls or land surrounding a church. Permissive tax exemptions are at the discretion of city council and may range from zero to 100 per cent.
The city’s current practice is to prepare five separate bylaws annually to grant the permissive tax exemptions. The bylaws must be adopted by council on or before October 31 each year and apply to taxation in the next year.
Councillor Chris McNaughton said council will be discussing permissive taxes as part of the budget process for 2010. “Other communities around British Columbia, the lower coast in particular, are also struggling with the permissive tax exemption, both the benefit to the community and the impact on the community,” he said.
In April 2005, city council adopted a policy which outlined a plan to phase in taxes for groups that applied for permissive tax exemptions. By 2010, 70 per cent of the exemption for land around churches would have been eliminated.
In the face of stiff opposition, councillors rescinded the policy and adopted a new policy in September 2007. It outlined which organizations are eligible to apply to have their taxes reduced, as well as provides evaluation guidelines and a procedure.
The policy states the total amount to be set aside for permissive tax exemption will be set by council annually during the development of the financial plan.
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