Requests for Permissive Tax Exemptions

Requests for Permissive Tax Exemptions

Staff Report to Special Community Advisory Committee

Date: Tuesday, July 7, 2026
Department: Finance
Subject: Request for Permissive Tax Exemptions

Executive Summary

This report presents four applications for 2027 permissive tax exemptions under Section 224 of the Community Charter, including three new applicants and one organization seeking renewal of an existing exemption. In addition, BC Assessment has advised of a folio change affecting the Victoria Conservatory of Music “Conservatory” property at 210–1314 Lakepoint Way. As a result, an amendment to the existing permissive tax exemption bylaw is required to ensure the Conservatory continues to receive its previously approved exemption for the 2027 tax year.

Background

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

As noted in the Permissive Tax Exemption Policy, organizations that meet the criteria set out in Section 224 of the Community Charter may be eligible to receive a Permissive Tax Exemption. Applications must be received by June 30 to be considered for the next tax year. Applicant organizations must also provide a detailed description of the programs, services, and benefits delivered by the organization. As per the Community Charter, Permissive Tax Exemptions must not exceed ten (10) years.

Commentary

The following organizations have applied for permissive tax exemptions:

1. Construction Foundation BC – located at 2775 Spencer Road. This registered Canadian charity recently purchased the property, with the intent to build “The Forge” – a support initiative for skilled trades people, offering peer support, recovery coaching, clinical counselling and other supports for mental health and addiction.

2. Sooke Family Resource Society (SFRS) – located at 202-2800 Bryn Maur Road. This charitable organization provides various programming, including one-on-one support service and an Empowering Personal Wellness Activity Club to more than 50 individuals. Their Welcome Home program has almost 30 Home Shares, providing housing and support for over 30 individuals. The organization also supports adults with developmental disabilities through its Adult Outreach Services department. The SFRS received a $3,000 Grant in Aid from the City in 2025.

The applicant currently leases this unit from the owner of the building, and property taxes are included in the gross rent paid. Staff have confirmed with BC Assessment that, if a permissive tax exemption is granted, it would apply only to the unit occupied by the applicant, while the remainder of the building would remain subject to property taxation as per usual. Further, the City has received confirmation, by way of an amended lease agreement, that the financial savings realized by the permissive tax exemption will be passed directly to the applicant.

3. Mount Finlayson Congregation of Jehovah’s Witnesses – located at 2506 Selwyn Road. This place of public worship receives a partial tax exemption under s. 220 of the Community Charter. Religious services at this Kingdom Hall are open to the public and free of charge. Average attendance at meetings is 293, with the majority of congregants residing in Langford. All religious services and activities are provided by volunteers.

4. M’Akola Housing Society – located at 550 Goldstream Ave. This property was granted a 10-year permissive tax exemption under “Tax Exemption Non-Profit Affordable Housing Bylaw No. 1656, 2016.” 2026 is the last year for the exemption, and the organization is applying for another permissive tax exemption. The M’Akola Housing Society provides safe, affordable and appropriate homes primarily for Indigenous people and families. Through community partnerships and funders, M’akola is able to provide subsidized housing, affordable rentals and assisted living units throughout most of British Columbia. Their tenants are low to moderate income, mostly Indigenous families, elders and seniors. Currently, M’Akola offers 31 below-market rentals (supporting 82 household members) and five rent-geared-to-income units (supporting 15 household members). It was noted in the application that the organization also receives a subsidy from Aboriginal Housing Management Association.

Should the Committee wish to recommend that Council grant permissive tax exemptions to the four applicants, staff recommend the following approach:

• The three new applicants (Construction Foundation BC, SFRS, and Mount Finlayson Congregation of Jehovah’s Witnesses) be approved for a one-year exemption, with an amendment to “Permissive Tax Exemption Bylaw 2147, Amendment No. 2, Bylaw No. 2249, 2025”. This approach would align the exemptions with the current term under Permissive Tax Exemption Bylaw 2147, 2023, and the four-year election cycle. All organizations would then be required to reapply by June 30, 2027, to be considered for permissive tax exemptions in the 2028 tax year and beyond.
• M’Akola Housing Society be approved for another 10-year exemption.

In addition, BC Assessment Authority recently notified staff that for the 2027 tax year, they would be assigning new folio numbers to the units at 1319 Westhills Drive. As the Victoria Conservatory of Music, which currently has a Permissive Tax Exemption under “Permissive Tax Exemption Bylaw 2147, Amendment No. 2, Bylaw No. 2249, 2025”, will be affected by this change, staff are recommending an additional amendment to Bylaw 2249 to include the updated folio number to ensure they continue to receive their permissive tax exemption in 2027.

Financial Implications

While the City would otherwise receive property tax revenue from these properties, approval of permissive tax exemptions would not reduce the City’s overall tax revenue. Rather, the portion of taxation that would have been collected from the exempt properties would be redistributed across the remaining taxable properties within the City.

For reference, the 2026 assessments and tax levies for the four applicant properties are as follows:

¹ Currently all of 2800 Bryn Maur Rd is assessed and taxed as one. Should SFRS be granted a Permissive Tax Exemption, BC Assessment will determine the portion of the property that relates to SFRS and will provide an exemption for that portion only. A lease amendment agreement has also been provided which speaks to how the savings from a potential Permissive Tax Exemption would be passed down to the tenant.

Legal Implications

Council may exempt properties from taxation by bylaw adopted on or before October 31, 2026, in accordance with Section 224 of the Community Charter. Proper advertisement will be made prior to adoption of the bylaw.

Strategic Plan Alignment

Strategic Priority Five: Good Governance

Options

Option 1

THAT the Community Advisory Committee recommend that Council: