Tax Exemption Bylaw (Non-Profit Organizations) No. 1157, 2025
A report from the Director of Finance regarding an application from the Island Corridor Foundation for a 10-year permissive property tax exemption.
TOWN OF VIEW ROYAL COUNCIL REPORT
TO: Council
DATE: August 26, 2025
FROM: Steven Vella, Director of Finance
MEETING DATE: September 16, 2025
Tax Exemption Bylaw (Non-Profit Organizations) No. 1157, 2025
RECOMMENDATION:
THAT Tax Exemption Bylaw (Non-Profit Organizations) No. 1157, 2025, a bylaw to provide tax exemption for non-profit organizations, be introduced and given first, second, and third readings.
ALTERNATIVE OPTIONS:
Option #2: THAT Council amend the duration or percentage of exemption for all subject properties.
PURPOSE:
To consider the Island Corridor Foundation application for permissive tax exemption and adoption of Tax Exemption Bylaw (Non-Profit Organizations) No. 1157, 2025.
BACKGROUND:
Section 224 of the Community Charter allows the Town to provide permissive property tax exemptions to charitable, philanthropic, or non-profit organizations relating to properties that Council considers are used for a purpose that is directly related to the purposes of the corporation. Permissive exemptions under Section 224 are at the discretion of Council and there is no obligation to provide the exemption.
On October 20, 2015, Council adopted Bylaw No. 935, a bylaw to provide tax exemption for non-profit organizations.
The adoption by Council of the proposed Tax Exemption Bylaw (Non-Profit Organizations) No. 1157, 2025, (Attachment A) will renew the permissive exemption status for taxation years 2026-2035.
Per legislation and Town of View Royal Permissive Tax Exemption Policy #1600-018 (Attachment B), permissive tax exemption bylaws must be passed prior to October 31, to be in effect the following taxation year.
ANALYSIS:
The subject properties are owned by Island Corridor Foundation and comprise the land on which the E&N Rail Trail resides from the Esquimalt border, West to Parsons Road. The Island Corridor Foundation met the Town’s deadline for applications of July 31, 2025, with an application to renew the permissive status of each property. All properties were previously tax exempt for a ten-year term, expiring in 2025 (Tax Exemption Bylaw (Non-Profit Organizations) No. 935).
The properties are presented in Attachment C to this report, as part of the application package from Island Corridor Foundation:
- Folio 401 18806.000; PID 023-005-459
- Folio 401 18807.000; PID 011-825-871; 014-980-258; 024-036-021; 024-039-209; 024-839-957
- Folio 401 18807.002; PID 024-635-987
The ten-year duration of the permissive exemption bylaw provides financial predictability to the Town, while giving the exempt organization a level of financial certainty and stability over the coming years. Providing the exemption helps advance community goals, including present day recreational usage and potential future transportation alternatives.
The bylaw also allows that if the use of any portion of the property changes during the ten-year term and is subsequently deemed to be for profit, the tax exemption would cease to apply to that part of the property.
Impacts and implications can be summarized as follows:
| Impact Category | Implications |
|---|---|
| Community Impact: | Provides recreational facilities for public use; preserve heritage important to the community character; preserve an environmentally or ecologically significant area of the community |
| Financial Implication: | Permissive tax exemptions reduce the property taxes payable by the grantee organization for the term of the exemption. The amount of tax revenue exempted is shifted and spread to all other taxpayers in View Royal. The Schedule of Permissive Tax Exemption Applications 2025 (Attachment C) estimates the annual value of tax exemptions will be between $69,148 and $78,207 for the years 2026 to 2028, including property taxes for municipal and all other purposes (school, regional district, hospital, etc.). |
| Inter-governmental Relations Impact: | Permissive tax exemptions will shift property taxes for other taxing authorities from the exempted properties to all other taxpayers, in the same manner it does for municipal property taxes. |
ALIGNMENT:
The recommended option aligns with the Town’s following core guiding documents as follows:
Strategic Plan: The Town recognizes that there are organizations in the community which enhance the quality of life with their program and service offerings. Providing permissive tax exemptions aligns with the following Strategic Priorities of Council:
- Enhance Livability
- Climate Action & Environmental Stewardship
- Financial Sustainability and Service Excellence
Official Community Plan: N/A
Other Policy Documents: N/A
PUBLIC PARTICIPATION GOAL:
The desired level of public participation for the recommended option is:
- Inform
- Consult
- Involve
- Collaborate
- Empower
- N/A
TIME CRITICAL:
Section 224(4) of the Community Charter requires permissive property tax exemption bylaws be adopted by October 31 to be in effect for the next calendar year. Sections 227 and 94 require public notification to occur in the manner set out by the Town’s Public Notification Bylaw No. 1106, 2023. Staff will return Tax Exemption Bylaw (Non-Profit Organizations) No. 1157, 2025 for Council’s consideration after public notification is completed and before the October 31 deadline.
CONCURRENCE:
| CONCURRENCE | Initials | Comments |
|---|---|---|
| Chief Administrative Officer | I concur with the recommendation. |
REVIEWED BY:
| REVIEWED BY | Initials |
|---|---|
| Director of Corporate Administration | |
| Director of Finance & Technology | |
| Director of Development Services | |
| Director of Engineering | |
| Director of Protective Services |
ATTACHMENTS:
Attachment A: Proposed Tax Exemption Bylaw (Non-Profit Organizations) No. 1157, 2025
Attachment B: Permissive Tax Exemption Policy #1600-018
Attachment C: 2025 Permissive Tax Exemption Applications and Summary
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