Staff Report: PERMISSIVE TAX EXEMPTION APPLICATION - EXTREME OUTREACH SOCIETY

PERMISSIVE TAX EXEMPTION APPLICATION - EXTREME OUTREACH SOCIETY

RECOMMENDATION:

THAT Council consider a permissive tax exemption for Extreme Outreach Society located at 102-284 Helmcken Road (Folio 401 04460.140), and if approved, give three readings to Bylaw 1008 (attached) accordingly.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:

I concur with the recommendation.

PURPOSE OF REPORT:

To consider an application for a permissive tax exemption from Extreme Outreach Society, a registered charity.

TIME CRITICAL:

If Council wishes to provide a new permissive tax exemption for the 2019 tax year, a bylaw to that effect must be adopted prior to October 31, 2018. A draft bylaw is attached as Appendix A.

BACKGROUND DISCUSSION:

Extreme Outreach Society, a registered charitable organization, owns the property at 102-284 Helmcken Road and has submitted an application for permissive tax exemption, attached as Appendix B. The location operates as a coffee house and an administrative headquarters for programs benefitting the community. Extreme Outreach Society also rents the space for birthday parties as well as to another registered charity for seven hours per week. The Town of View Royal Permissive Exemption Policy #1600-018 allows an exemption that includes the rented portion of the space, as long as the occupier is not a for-profit organization. Staff’s analysis of the application is attached as Appendix C.

Section 224 (2)(a)(i) of the Community Charter states that a Council may exempt land or improvements, or both, that are owned or held by a charitable, philanthropic or other not for profit corporation.

The Town of View Royal currently has permissive tax exemptions in effect for eight properties, as listed in Appendix D.

View Royal’s Permissive Exemption Policy #1600-018, attached as Appendix E, provides guidance to Council in determining whether an organization is eligible to receive a permissive exemption based on the nature of the organization and the use of the property. The application meets the criteria and is eligible to be granted an exemption from property taxes if Council so chooses.

In prior years, Extreme Outreach Society has applied for assistance in the form of grants in aid and permissive tax exemptions as indicated in the table below.

ALTERNATIVES:

Per Section 224 of the Community Charter, Council may grant a permissive exemption for any percentage of the land or improvement value for a period of one to ten years.

In keeping with current Council practice, the proposed bylaw reflects exemption of 100% of the taxable land and improvement value of the property for a period of ten years.

FINANCIAL IMPLICATIONS:

Providing permissive tax exemptions does not impact the financial plan of the Town since exempted taxes are shifted to other property taxpayers. Based on current tax rates for business class 6, an exemption provided to 102-284 Helmcken Road for 2019 would exempt the property from an estimated $5,537 in total taxes of which $2,950 is the municipal tax component. These tax dollars would be recovered by spreading the burden to all other assessed properties.

RECOMMENDATION:

THAT Council consider a permissive tax exemption for Extreme Outreach Society located at 102-284 Helmcken Road (Folio 401 04460.140), and if approved, give three readings to Bylaw 1008 (attached) accordingly.

SUBMITTED BY: S. Vella, Manager of Accounting

REVIEWED BY: D. Christenson, Director of Finance

Attachments:

• Appendix A – Bylaw
• Appendix B – Application
• Appendix C – Application Analysis
• Appendix D – Active Permissive Exemptions Listing
• Appendix E – Permissive Exemption Policy