Staff Report: 2019 Permissive Tax Exemptions – Bylaw No. 1795, 2018

Background

Council has discretionary authority under Section 224 of the Community Charter to exempt certain properties from property taxation for the following year.

The City of Langford has exempted various properties from taxation in past years. This report contains only those that were applied for in 2018 as the prior exemption, Bylaw No. 1718, was for 2018 and 2019. We are recommending amending Bylaw No. 1718 to bring the timing in line with the other properties.

In addition, during a review of “Bylaw 1718 A Bylaw to Exempt Certain Lands and Improvements Within The City of Langford from Taxation for the year 2018 and 2019”, with BC Assessment, it was noted that two of the properties exempted had changes in their legal descriptions. The property’s exemption remains the same. The two properties affected are letters (s) and (z) of Bylaw No. 1718. BC Assessment has requested we amend the bylaw to include these updates.

Langford Council’s policy is as follows; “Approval of tax exemptions will be considered where eligible charitable organizations demonstrate written proof of community access to citizens of Langford at a nominal charge and community benefit in the previous year. Applications must include a general statement of activities, a description of the membership or population serviced by the group or Association, written proof of community access to citizens of Langford at a nominal charge and community benefit in the previous year, and a most recent financial statement to demonstrate financial need.”

All applicants have been advised that the level of community benefit provided by each organization will be reviewed in conjunction with their request for exemption. Each group has also been requested to provide a financial statement to demonstrate financial need.

Commentary

The Indigenous Perspectives Society contacted City staff early in the year to request an exemption for their property located at 664 Granderson Road.

“Indigenous Perspectives Society (IPS) is a charitable and not-for-profit social enterprise that offers training programs and services that help foster a deeper understanding of Indigenous perspectives, cultural differences, and the need for self-determination”

The Society provides cultural and educational programs to the public. Other funding received is from the Department of Indian and Northern Affairs Canada, the Ministry of Children and Family Development and other donations.

The Bishop of Victoria has requested a permissive exemption for 2 of the properties not previously exempted through the permissive process. These properties used to be rented out, however, their use has now changed. A new full application package was not requested as we have the previous one from the other properties. These properties will now be utilized as follows:

• 2750 Claude Road – operates a pre-school/daycare facility. This facility has one paid employee and volunteers to provide care for Langford children. The Church provides the building free of charge and fees are only charged to the parents to cover the salary of the one employee.

• 2756 Claude Road – is now a home to a refugee family. The Church is providing all other living expenses for the refugees stay in Canada.

Financial Implications

The adoption of the tax exemption bylaw would reduce Langford’s potential tax revenue. The estimated amount of the above exemptions from the three new properties is $12,686 for 2019.

Legal Implications

Council may exempt properties from taxation in 2019 by bylaw adopted on or before October 31, 2018 in accordance with Section 224 of the Community Charter.

Options

That Council give City of Langford Permissive Tax Exemption Bylaw No. 1718, 2017, Amendment No. 1, Bylaw No. 1795, 2018 the first three readings.

Submitted by

Submitted by:
Audrey Kryklywyj-Shoirtreid, Deputy Director of Finance

Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance

Concurrence:
Darren Kiedyk, Chief Administrative Officer

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