City of Powell River councillors have given first three readings to four permissive tax exemption bylaws which, if adopted, will provide tax relief to a number of community organizations.
At the October 5 city council meeting, councillors voted on extending 97 per cent tax relief to the organizations accepted, meaning those organizations would have to pay three per cent of municipal taxation in 2024. The permissive tax exemptions must be fully adopted by October 31.
According to a report from chief financial officer Mallory Denniston at the September 12 committee of the whole meeting, 48 organizations had applied for $560,118 in permissive tax exemptions for 2024. The city has a permissive tax exemption cap of $400,000.
Denniston provided two options at the committee meeting. One was to provide a 97 per cent tax exemption to all but five of the applicants. The second option was for a 70 per cent exemption to all applicants. The committee recommended the first option, meaning that inclusion Powell River, Lift Community Services of qathet Society, Powell River Kiwanis Housing Society, Strive Living Society and Powell River Kiwanis Village Society would be paying full taxes.
At the council meeting, councillor Trina Isakson said once the results of the September 12 committee of the whole meeting became public, concerns were raised by some of the five organizations that are not listed in the bylaws.
“I wanted to discuss with council if there was appetite to shift these draft bylaws,” said Isakson.
She said the bylaws before council were for a 97 per cent tax exemption. She said in 2023, the exemptions were 86 per cent across the board, so she was wondering if the exemption was set at 86 per cent, the city was still not shocking the smaller non-profit organizations, and there might be space in the $400,000 cap to address some of the concerns raised by the five organizations.
“There’s two ways to go forward with this,” said Isakson. “One would be to refer it back to staff to bring back to us updated bylaws, including any bylaws that might incorporate the five applicants that were not included. Or, we could pass amended versions of what we have on the floor tonight.”
Councillor George Doubt said he would prefer to vote on the bylaws that were before council rather than amending them.
Councillor Rob Southcott said he respected where Isakson was coming from, and had difficulty with the feedback that was received after the committee discussed the staff recommendations.
“During that committee meeting, we had fulsome discussion and we agreed on a policy direction. Notwithstanding that, I still have problems with our fundamental policy,” said Southcott. “Staff has received direction to work on that policy. It is not perfect, but we discussed it, we came to the decision to refer what we came to to council, and I support the work we did back then, notwithstanding my own reservations. I do not support amending our process.”
Councillor Jim Palm said he was comfortable with council’s decision at the committee level.
Isakson said when the discussion occurred at committee of the whole, there hadn’t been the opportunity to engage the organizations that would be impacted.
“We didn’t have community engagement on this,” said Isakson. “I’m of the opinion that early engagement is better. I’m not confident in this decision because those organizations most impacted haven’t had an opportunity to provide much input.”
Isakson proposed an amendment to the draft bylaw that the 97 per cent be changed to 86 per cent, which is what it was in the previous permissive tax exemption bylaws, to provide relief to all applicants. There was no seconder for the amendment.
Council voted to pass first three readings of the bylaw, with Isakson opposed.
Council then considered the three other permissive tax exemption bylaws, giving first three readings, with Isakson opposed to all of them.
Councillor Cindy Elliott also opposed draft bylaw 2730, the third permissive tax exemption bylaw, because it was proposed to provide exemption to vacant land.
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