City of Powell River’s committee of the whole is recommending $376,640 in permissive tax exemptions in 2025, which is below the $400,000 limit previously established by city council.
Permissive tax exemptions are established by bylaw and permit eligible nonprofit organizations that apply for exemptions not to pay all or a portion of their city taxes. Staff assesses the applications based on the criteria in council’s permissive tax exemption policy to aid the decisions and is the starting point for staff recommendations. The money exempted from the organizations is made up by the other taxpayers in the city.
At the September 10 committee meeting, chief financial officer Mallory Denniston said there were applications for 80 properties from 46 organizations, totalling $527,189 in exempted municipal taxes for 2025. She said this total request exceeds city council’s $400,000 cap by approximately $127,000.
“Of the total applications, there were 45 eligible properties from 42 organizations, totalling roughly $364,000 in exempted property taxes,” said Denniston. “This is within the $400,000 cap. Therefore, the recommendation is to approve 100 per cent of the permissive tax exemption request from all eligible nonprofit organizations.”
Denniston said staff identified 35 properties owned by four nonprofit organizations, so roughly $160,000 in exemptions were for dwellings related to affordable housing.
“This does not appear to meet the policy condition,” said Denniston. “Dwellings on properties will not be eligible for permissive tax exemption, according to policy. However, staff notes this is not fully clear if this is intended to exclude nonprofits whose purpose is to provide housing.
“Three of these four housing nonprofits did not meet the criteria to demonstrate financial need. In short, financial need is demonstrated if the organization couldn’t afford to sustainably operate into the future without the exemption.”
Denniston said in her report to council that the financial impact of permissive tax exemptions is a redistribution of property taxes, so the average single-family dwelling in Powell River will pay $89 to make up for the lost tax revenue from the nonprofit organizations granted permissive tax exemptions.
Council was presented with a recommendation that committee of the whole members direct staff to prepare permissive tax exemption bylaws in accordance with staff recommendations outlined in a staff report from Denniston.
However, councillor Cindy Elliott wanted to include Life Cycle Housing Society, which had been excluded from the 2025 permissive tax exemptions. Life Cycle’s estimated taxes for 2025 are $12,747. Elliott said the society meets the financial need criteria but was excluded because its charitable purpose is to provide affordable housing.
“I don’t think that was the intent of the policy, which refers to caretakers and so forth,” said Elliott.
Councillor George Doubt said inclusion Powell River Society and Powell River Inclusive Housing Society had not been recommended for permissive tax exemptions and he wondered why they should be excluded.
Elliott said they were excluded because they didn’t have financial need.
Council voted to have staff prepare permissive tax exemption bylaws in accordance with the recommendations from staff, with Life Cycle Housing added. The bylaws will come to city council for first readings on October 10 and for final adoption on October 24.
Recommendations for permissive tax exemptions include: Alano Club of Powell River; Carlson Community Club; The Church of Jesus Christ of Latter-Day Saints; Cranberry Community Association; Evangel Pentecostal Church; Far-Off Broadway Theatre Company Society; Foursquare Gospel Church of Canada; Governing Council of the Salvation Army; Guru Arjan Dev Sikh Society of Powell River; Le Club Bon Accueil Society; Life Cycle Housing Society; Nature Trust of BC; Parish of St. David and St. Paul Anglican Church; Powell Lake Congregation of Jehovah’s Witnesses; Powell River Academy of Music; Powell River Action Centre Food Bank; Powell River Brain Injury Society; Powell River Curling Club; Powell River Italian Community Club; Powell River Lawn Bowling Club; Powell River Otago Rugby Club; Powell River Search and Rescue Society; Powell River Sport and Fitness Society; Powell River United Church; Powell River Villa Soccer Club; qathet Art Council; qathet Film Society; qathet Museum and Archives Society; qathet Museum and Archives Society (forestry museum); Royal Canadian Legion Branch 164; Senior Citizens Association of BC; Seventh-Day Adventist Church; Star Duster Hall Society; British Columbia Society for the Prevention of Cruelty to Animals; Catholic Independent Schools of Vancouver Archdiocese; Source Club Society; Timberlane Barracks Sponsor Committee; Timberlane Fine Arts Association; Tourism Powell River; Townsite Heritage Society of Powell River; Westview Baptist Church; and Westview Flying Club.
Recommendations for exclusion from permissive tax exemptions include: inclusion Powell River Society; Powell River Inclusive Housing Society; and Powell River Sunset Homes Society.
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