PERMISSIVE TAX EXEMPTION APPLICATION - THE SALVATION ARMY
Application for permissive tax exemption for The Salvation Army's thrift store operations and related community services at 305 Island Highway.
Permissive Tax Exemption Application
Deadline: July 31, 2014
Date: July 15, 2014 Name of Organization: THE GOVERNING COUNCIL OF THE SALVATION ARMY Address: 2 OVERLEA BLVD 5TH FLOOR, TORONTO, ON M4H 1P4 Contact Person(s):
- JOHN KERSHAW, MANAGING DIRECTOR
- DAVID DIMARCO, DIRECTOR OF FINANCE
Attachments Required:
- Copy of the audited financial statements for the previous year
- Copy of the state of title certificate or lease agreement (including legal description), as applicable
- Description of the programs/services/benefits delivered from the subject lands and/or improvements including participant numbers, volunteer hours, benefiting group/individuals/special needs populations, fees charged for participation
- Description of any third party use of the subject land and/or improvements including user group names, fees charged, conditions of use: N/A
- Statement if grant-in-aid approved for current year: N/A
Eligibility Criteria:
A. Subject Property must be one of:
- Land or improvements, or both, owned by an entity described in B. (below)
B. Nature of Organization must be:
- Charitable/philanthropic organization
C. Community Benefits:
- Provide programs to and/or facilities used by youth, seniors or other special needs groups
Cover Letter
July 18, 2014
Town of View Royal Finance Department 45 View Royal Avenue Victoria, BC, V9B 1A6
Attention: Director of Finance
Re: 2015 Permissive Tax Exemption Application
In connection with our application for 2015 permissive tax exemption for registered charities, we are submitting the following documents:
- 2015 Permissive Tax Exemption Application;
- Audited Financial Statements for 2014;
- Copy of lease agreement and 2014 Property Tax Notice; and
- Description of the services/benefits and supporting documents.
We hope the attached are sufficient to facilitate your processing of our applications. Should you have any question, please feel free to call me at (416) 425-2111 ext 2216.
Sincerely, Ying (Maureen) Meng Senior Accountant The Salvation Army National Recycling Operations
Store Operating Statements
12 Months Ended 3/31/14 VIEW ROYAL - (8520)
Sales and Cost of Sales
| SALES | ACTUAL | % OF TOTAL | BUDGET | % OF TOTAL | LAST YEAR | % OF TOTAL |
|---|---|---|---|---|---|---|
| Sales Clothing | 62,087 | 62.98 | 38,199 | 46.00 | 42,435 | 52.82 |
| Sales Bric A Brac | 45,549 | 46.20 | 38,199 | 46.00 | 32,658 | 42.59 |
| Sales New Mattress | 5,793 | 5.88 | 8,304 | 10.00 | 6,038 | 7.85 |
| Sales New Merchandise | 65 | 0.07 | 830 | 1.00 | 1,078 | 1.41 |
| Discount | -14,911 | -15.13 | -2,491 | -3.00 | -3,574 | -4.67 |
| Store Sales | 98,583 | 100.00 | 83,041 | 100.00 | 78,635 | 100.00 |
| COST OF SALES | ACTUAL | % OF TOTAL | BUDGET | % OF TOTAL | LAST YEAR | % OF TOTAL |
|---|---|---|---|---|---|---|
| COGS Clothing | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
| COGS Bric A Brac | 19,826 | 20.11 | 12,572 | 15.14 | 17,690 | 22.32 |
| COGS New Mattress | 6,883 | 6.98 | 5,536 | 6.67 | 6,859 | 8.71 |
| COGS New Merchandise | 0 | 0.00 | 593 | 0.71 | 686 | 0.90 |
| COGS Other Items | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
| Cost of Sales | 26,709 | 27.09 | 18,701 | 22.52 | 24,445 | 31.93 |
| GROSS MARGIN | 71,874 | 72.91 | 64,340 | 77.48 | 52,110 | 68.07 |
|---|
Store Expenses
| PERSONNEL | ACTUAL | % OF TOTAL | BUDGET | % OF TOTAL | LAST YEAR | % OF TOTAL |
|---|---|---|---|---|---|---|
| Salaries | 34,247 | 34.74 | 25,165 | 30.30 | 27,034 | 35.31 |
| Benefits | 6,102 | 6.19 | 4,944 | 5.95 | 5,247 | 6.85 |
| Bonus | 1,439 | 1.46 | 250 | 0.30 | -1,046 | -1.37 |
| Casual Labour | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
| Other Personnel Expenses | -1,800 | -1.83 | 0 | 0.00 | 0 | 0.00 |
| Personnel | 39,987 | 40.56 | 30,360 | 36.56 | 31,235 | 40.80 |
| OCCUPANCY | ACTUAL | % OF TOTAL | BUDGET | % OF TOTAL | LAST YEAR | % OF TOTAL | | :--- | :--- | :--- | : :--- | :--- | :--- | :--- | | Rent | 8,200 | 8.32 | 7,688 | 9.26 | 7,913 | 10.34 | | Rent - S.A. Properties | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | | Common Area | 2,885 | 2.93 | 2,957 | 3.56 | 2,885 | 3.77 | | Property/Business Tax | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | | Property Tax Rebates | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | | Repairs and Maintenance | 371 | 0.38 | 115 | 0.14 | 893 | 1.17 | | Utilities | 1,766 | 1.79 | 1,005 | 1.21 | 1,208 | 1.58 | | Property Insurance | 71 | 0.07 | 50 | 0.06 | 65 | 0.08 | | Safety & Security | 61 | 0.06 | 215 | 0.26 | 39 | 0.05 | | Waste Disposal | 919 | 0.93 | 1,995 | 2.40 | 2,006 | 2.62 | | Commission | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | | Other Property Expenses | 0 | 0.00 | 145 | 0.17 | 0 | 0.00 | | Occupancy | 14,272 | 14.48 | 14,170 | 17.06 | 15,009 | 19.61 |
| OTHER EXPENSES | ACTUAL | % OF TOTAL | BUDGET | % OF TOTAL | LAST YEAR | % OF TOTAL |
|---|---|---|---|---|---|---|
| Equipment Leasing / Rental | 148 | 0.15 | 0 | 0.00 | 496 | 0.65 |
| Store Supplies | 1,208 | 1.22 | 1,125 | 1.35 | 738 | 0.96 |
| Store Fixtures | 494 | 0.50 | 0 | 0.00 | 0 | 0.00 |
| Equipment Maint & Repairs | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
| Telephone & Internet | 243 | 0.25 | 240 | 0.29 | 249 | 0.33 |
| Janitorial Services & Supplies | 30 | 0.03 | 545 | 0.66 | 23 | 0.03 |
| Travel & Meals | 0 | 0.00 | 20 | 0.02 | 0 | 0.00 |
| Uniforms | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
| Education & Training | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
| Bank Charges | 376 | 0.38 | 379 | 0.46 | 321 | 0.42 |
| Cash Over/Short | 42 | 0.04 | -21 | -0.03 | -35 | -0.05 |
| Other Store Expenses | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
| Other Expenses | 2,541 | 2.58 | 2,288 | 2.76 | 1,793 | 2.34 |
| Total Store Expenses | 57,774 | 58.61 | 48,063 | 57.88 | 48,730 | 63.65 |
|---|---|---|---|---|---|---|
| STORE CONTRIBUTION | 14,100 | 14.30 | 16,277 | 19.60 | 3,380 | 4.42 |
| NET INCOME(LOSS) | 6,430 | 6.52 | 5,882 | 7.08 | -7,217 | -9.43 |
|---|
2014 Property Tax Notice
Town of View Royal
DUE DATE: July 2, 2014 Roll: 401 04303.010 Civic Address: 305 ISLAND HWY Legal Description: Plan: 1688 Lot: B Block: 1 Owner: LOUIE, ANN M and LOUIE, HENRY H Mortgage Name: LOUIE, HENRY AND ANNE
Taxable Assessed Value
| Class | Land | Improvements |
|---|---|---|
| 01 (Hospital) | 399,000 | 84,300 |
| 06 (Hospital) | 1,050,000 | 211,000 |
| 01 (General) | 399,000 | 84,300 |
| 06 (General) | 1,050,000 | 211,000 |
Tax Levies
| Levy | Class | Taxable Value | Rate | Amount |
|---|---|---|---|---|
| School Tax | 01 | 483,300 | 1.790900 | 865.54 |
| School Tax | 06 | 1,261,000 | 6.000000 | 7,566.00 |
| BCAA | 01 | 483,300 | 0.061900 | 29.92 |
| BCAA | 06 | 1,261,000 | 0.175500 | 221.31 |
| CRD GENERAL | 01 | 483,300 | 0.322780 | 156.00 |
| CRD GENERAL | 06 | 1,261,000 | 0.790820 | 997.22 |
| GENERAL MUNICIPAL | 01 | 483,300 | 2.661240 | 1,286.18 |
| GENERAL MUNICIPAL | 06 | 1,261,000 | 9.188480 | 11,586.67 |
| BC TRANSIT | 01 | 483,300 | 0.262900 | 127.06 |
| BC TRANSIT | 06 | 1,261,000 | 1.275100 | 1,607.90 |
| CRD SEWER | 795.17 | |||
| Total Current Taxes | 26,470.08 |
Lease Documents
Lease Renewal Agreement - July 1, 2013
To: Henry Louie From: The Governing Council of The Salvation Army in Canada Re: Salvation Army Thrift Store, 305 Island Highway, Victoria, B.C.
5 year Renewal of the Existing Lease on the same terms and conditions except for the Base Rent.
- Year 1: $8000 per month ($96,000/annum) Aug. 1/ 2013 to July 31/2014
- Year 2: $8500 per month ($102,000/annum) Aug. 1/2014 to July 31/2015
- Year 3: $8750 per month ($105,000/annum) Aug. 1/2015 to July 31/2016
- Year 4: $9000 per month ($108,000/annum) Aug. 1/2016 to July 31/2017
- Year 5: $9250 per month ($111,000/annum) Aug. 1/2017 to July 31/2018
NOTE: PG. 16 17.01 Demolition and Renovation clause will remain in effect during all 5 years of the renewal (Aug. 1/2013 to July 31/2018).
Lease Renewal Agreement - May 31, 2010
Re: Lease Renewal - 307 Island Hwy. Victoria, BC Existing lease renewed for three years on the same terms and conditions save and except for the base rent:
- $78,000 in year one: August 1, 2010 to July 31, 2011
- $84,000 in year two: August 1, 2011 to July 31, 2012
- $90,000 in year three: August 1, 2012 to July 31, 2013
Original Lease Agreement - June 22, 2005
BETWEEN: ANN LOUIE & HENRY LOUIE ("Landlord") AND: THE GOVERNING COUNCIL OF THE SALVATION ARMY IN CANADA ("Tenant")
WHEREAS: (A) The Landlord is the registered owner of the building known as 307 Island Highway, Victoria, British Columbia ("Building"). (B) The Tenant is desirous of renting part of the Building being approximately ten thousand (10,000.00) square feet ("Leased Premises").
ARTICLE ONE: DEMISE AND TERM 1.01 The term of FIVE (5) years and one month from the 1st day of August 2005.
ARTICLE TWO: RENTAL 2.01 Basic Rent: (ii) Basic Rent for period commencing August 1, 2005 until July 31, 2008: $210,000.00 ($6,000.00 monthly). (iii) Basic Rent for period commencing August 1, 2008 until July 31, 2009: $78,000.00 ($6,500.00 monthly). (iv) Basic Rent for period commencing August 1, 2009 until August 31, 2010: $84,000.00 ($7,000.00 monthly).
Description of Services and Programs
July 11, 2014 Director of Finance, Town of View Royal
The Salvation Army operates a thrift store on the property at 305 Island Highway to collect and sell second hand goods to local community residents. It also collects cash and non-perishable donations.
This thrift store served 77,637 customers in last fiscal year. There is no membership fee to access our service. This store is accessible to people with disabilities. 18 Volunteers were utilized by this thrift store in last fiscal year. These volunteers provided 740.50 volunteer hours in total last year.
The thrift store raises its own revenue by collecting and selling second hand goods. Funds generated from this store are distributed by the Salvation Army to local ministry units, The Salvation Army Stan Hagen Centre for Families, Victoria Addictions and Rehabilitation Centre, Victoria Sunset Lodge, High Point Community Church, Westsong Community Church, and Victoria Citadel.
Emergency vouchers are provided for registered clients of the Salvation Army for use in this thrift store for clothing, furniture, and household items. If a disaster occurs in BC, this thrift store can be an emergency shelter.
Stan Hagen Centre for Families - Programs:
- Pro-bono Legal Services: Legal counsel in areas of civil matters to those who cannot afford it.
- Spiritual Guidance: Christian organization with a Chaplain available to talk.
- Counseling: Professional counseling to individuals and families facing immediate crisis.
- Emergency Assistance: Temporary accommodations, transportation, food, clothing and furniture.
- Employment/Job Training Services: Networking, building confidence, resume building, etc.
- Computer Training: unique computer skills programs for job search skills and computer basics.
- Kids Camp: Designed to send less fortunate kids to camp for children 7-12 years of age.
- Christmas Assistance: Toy Shop and Food Hampers for low income families.
- School Supplies: Backpacks and school supplies to help kids start their school year prepared.
Victoria Addictions & Rehabilitation Centre - Programs:
Sunset Lodge - Services:
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