Staff Report to Community Advisory Committee - Request for Permissive Tax Exemptions

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. The properties which received exemptions in 2022 and 2023 are indicated in the commentary portion of this report.

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.”

Notices have been sent to all organizations that made permissive tax exemption requests in 2022 and 2023.

COMMENTARY

The following organizations have applied for permissive tax exemptions:

i. Farmfolk/Cityfolk Society – located at 1152 Lippincott Rd (lot 2). It is being operated by Lohbrunner Community Farm Cooperative. The societies vision is to help create access to affordable land for potential farmers, to supply fresh certified organic vegetables to the community and to be a centre for education and training for sustainable farming practices. This property was fully exempted in 2022-2023.

ii. The Forge Church – located at 2610 and 2612 Sooke Road. The property was fully exempted in 2022-2023.

iii. Grace Baptist Church – located at 2731 Matson Road. The property was fully exempted in 2022-2023.

iv. Greater Victoria Animal Crusaders – located at 2770 Penelope Place. This organization is a registered charity and provides the community with assistance with their domestic animals. It is a 100% volunteer run organization. This property was fully exempted in 2022-2023.

v. Habitat for Humanity - located at 849 Orono. They are a not-for-profit organization and is a registered charity under the Income Tax Act of Canada. The organization in Langford operates the ReStore, which is run by a combination of paid staff and volunteers. The ReStore accepts and resells quality new and used furniture, appliances, building materials and other items. This helps in the reduction of used materials that would otherwise end up in landfills. The money earned at this location contributes towards the construction of housing for lower income families. The property was fully exempted in 2022-2023.

vi. Hulitan Family and Community Services – located at 104 – 731 Station Ave. Hulitan mission is to preserve, unify, and advocate for Indigenous families by supporting healing and fostering resilience through culturally rooted programs and services and collaboration with community partners. This property was fully exempted in 2023.

vii. Indigenous Perspectives Society – located at 664 Granderson. The Society offers cultural and educational programs to the public. This property was fully exempted in 2022-2023.

viii. Island Corridor Foundation – E&N Corridor on Vancouver Island. This property was fully exempted in 2022-2023.

ix. Juan de Fuca Cadet Youth Society – The society clubhouse is located at 948 Dunford Ave and is used by the local branch of the Navy League of Canada and its two Cadet Corps. This organization provides a program which includes citizenship and leadership training, encouraging “esprit de corps”, self-discipline and physical fitness. The training helps provide the foundation required of productive citizens and leaders in our community. The organization received a full exemption in 2022-2023.

x. Langford 50 and Up Club – located at 2637 Sunderland Road. This organization is run entirely on a volunteer basis. It provides activities for “50 and up” to encourage socialization and inclusiveness in our community. They received a full exemption in 2022-2023.

xi. The Lighthouse Christian Academy – located at 1289 Parkdale Drive. This property was fully exempted in 2022-2023.

xii. M’Akola Development Services Society – located at 107 – 731 Station Ave. The Society is committed to developing affordable rental buildings for individuals and families throughout British Columbia. This property received full tax exemption in 2023.

xiii. M’Akola Housing Society – 35 units located at 731 Station Ave. The Society provides affordable rental accommodations to people throughout British Columbia. Although the application was received in the year 2020, it was too late to be considered for the 2021 taxation year. It has therefore been attached as a request for 2022-2023.

xiv. Metchosin Farmers Institute – The Institute owns several properties known as the Luxton Fairgrounds. This organization operates on a volunteer basis. Revenues are in the form of Fair/Rodeo events, rentals and donations. Luxton Fairgrounds received full tax exemption in 2022-2023.

xv. Nature Conservatory of Canada – located at 1152 Lippincott Rd (lot 1). It is a nature reserve and the property is being preserved for the purpose of conserving the rare ecosystem found there. This property was fully exempted in 2022-2023.

xvi. Royal Canadian Legion – located at 761 Station Avenue - The Legion provides space for Langford Emergency Social Services and the Food Bank. The Legion also provides many services to the Western Communities. These include assistance to Veterans and Seniors, provide youth and cadets with funding for training and equipment, provide scholarship/bursaries to students, support schools with donations for items such as musical instruments etc. They also promote Remembrance Day activities, provide free medical equipment, walkers, scooters, etc to veterans, seniors and members of the community, give to the Priory, West Shore Adult Day Centre and Wescom Medi-Lend Society. The Legion also supports an annual community Christmas dinner for the homeless and less fortunate of the Western Communities. The organization runs mostly on volunteers who give approximately 75,000 hours of volunteer work annually. The property was fully exempted in 2022-2023.

xvii. Redeemer Lutheran Church of Victoria – located at 3024 Jacklin Road. It was fully exempted in 2022-2023.

xviii. South Vancouver Island Rangers – located at 3498 Luxton Road. The Society notes that they donate annually to various charities and make the grounds available for community events. Part of the land provides a spectacular green space in the Happy Valley area, and has been preserved as a refuge for birds and wildlife. A full exemption was granted in 2022-2023.

xix. Trustees of the Congregation of Gordon United Church – located at 929 and 935 Goldstream Avenue. The property was fully exempted in 2022-2023.

xx. Vancouver Island Autistic Homes Society – located at 1072 Jenkins Ave. This society operates a special needs home. It was fully exempted in 2022-2023.

xxi. Victoria Association for Community Living – located at 157, P44, P45, P46, P47 -2745 Veterans Memorial Parkway. The Association provides support services to children, youth and adults with developmental disabilities, and to their families. The Association is a registered non-for-profit society. This property was fully exempted in 2022-2023.

xxii. Victoria Conservatory of Music – located in the Westhills YM/YWCA Building and occupies unit #210-1314 Lakepoint Way (property address 1319 Lakepoint Way). The Society provides music activities and education for the residents of Langford. This property was fully exempted in 2022-2023.

xxiii. Westwind Plaza (JV) Properties Ltd. – this property is the Goudy Library at 119-755 Goldstream Avenue. This property is included in the bylaw as this is a city-initiated exemption. This property was fully exempted in 2022-2023.

xxiv. West Shore Chamber of Commerce – even though the Chamber office is located on municipal property at 2830 Aldwynd Road, it is taxable because the Chamber is a taxable occupier of leased municipal land. Therefore, a permissive exemption is necessary. The property was fully exempted in 2022-2023.

xxv. Our Lady of the Rosary Parish (Bishop of Victoria) – they previously received exemptions at their now old Our Lady of the Rosary Church at 798 Goldstream Avenue. Their current application is now for their new location at 2941/2940/2936 Irwin Rd.

xxvi. Plumbers & Pipefitters Building Society - the society is building a admin/training facility at 2757 & 2763 Leigh Rd. Here they hope to better accommodate their growing membership as well as provide an educational hub for local community members looking to enroll in one of their piping red seal trades. They have also partnered with the school district to provide education and work experience opportunities for their students.

Of these organizations, only Our Lady of the Rosary Parish (Bishop of Victoria) and the Plumbers and Pipefitters Building Society are new applications, all other organizations received permissive tax exemptions in 2023.

It is worth noting that beginning in 2019, for the 2020 and 2021 tax year, the City began doing a two-year permissive exemption for these organizations. Prior to that, the organizations would only receive a one-year exemption and would need to apply each year. The Community Charter allows for up to a ten-year permissive exemption bylaw. Staff are recommending that the City move to a four-year cycle for permissive exemptions, to coincide with the election cycle and to minimize the burden on non-profit organizations. As such, the current permissive exemptions, if approved by Council, would be effective for 2024, 2025, 2026 and 2027 tax years.

FINANCIAL IMPLICATIONS

The adoption of the tax exemption bylaw would reduce Langford’s potential tax revenue; however, it should be noted that all these organizations, with the exception of Plumbers & Pipefitters Building Society at 2757 & 2763 Leigh Rd, were exempted from taxation in 2023. The estimate of the 2024 exemptions ($258,873) and 2025 exemptions ($283,464). It is also worth noting that while the City would otherwise receive property tax revenue from these properties, should the City authorize the permissive exemptions, it does not mean less taxation revenue is collected by the City, rather the amount that would have otherwise been collected from these properties is collected from the rest of the taxable properties in the City.

LEGAL IMPLICATIONS

Council may exempt properties from taxation in 2024-2027 by bylaw adopted on or before October 31, 2023, in accordance with Section 224 of the Community Charter.

OPTIONS

Option 1

THAT the Community Advisory Committee recommend that all properties listed in this report by provided with a Permissive Tax exemption for 2024-2027.
AND

THAT the Community Advisory Committee recommend that Council direct staff to prepare the necessary bylaw to enact the above permissive exemptions.

OR Option 2

THAT the Community Advisory Committee recommend the following 2024-2027 Permissive Tax Exemptions:

1. All properties with the exception of:
   a.
   b.
   c.
   AND

THAT the Community Advisory Committee recommend that Council direct staff to prepare the necessary bylaw to enact the above permissive exemptions.

SUBMITTED BY

Michael Dillabaugh, CPA, CA, Director of Finance

Concurrence:
Donna Petrie, Senior Manager of Business Development and Events

Concurrence:
Yari Nielsen, Director of Parks, Recreation and Facilities

Concurrence:
Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision

Concurrence:
Katelyn Balzer, P.Eng., Director of Engineering and Public Works

Concurrence:
Marie Watmough, Deputy Director of Corporate Services

Concurrence: Braden Hutchins, Director of Corporate Services

Concurrence:
Darren Kiedyk, Chief Administrative Officer