by Wayne Moore - Oct 20, 2009 Castanet:
The Kelowna Chamber of Commerce was one of 13 businesses and not-for-profit organizations denied tax exemption status by the City of Kelowna. Council Monday approved about $3.1 million in municipal tax exemptions for organizations who meet the city's specific criteria. Included on the list are 5 new organizations, including the John Howard Society supportive housing complex on St. Paul Street, Kelowna Alzheimer Society of B.C. on Bernard Avenue, B.C. Conference of Mennonite Brethren Churches on Hwy 33, Aberdeen Hall Property Society on Academy Way and the new H2O Aquatic Centre.
According to Revenue Manager, George King, the Chamber of Commerce was denied an exemption because "the nature of the organization does not meet the criteria outlined outlined in the Permissive Tax Exemption Policy 327 Schedules A through I." Another 21 organizations will pay 80 per cent of their allotted tax bill as they find themselves in the final year of a five year phase out schedule. The phase out schedule was adopted in 2006 after council amended the Permissive Tax Exemption Policy which provided context to the eligibility criteria.
However, as was noted by several councillors, that $3.1 million in exemptions ends up being spread among the entire tax base. "When we give exemptions, we are simply shifting costs to other taxpayers and everybody does good things, but everybody can't be exempt from taxes because we all need services," says Councillor Robert Hobson. "In addition to the over $3.1 million that we forgive for organizations who do good works, we provide a whole range of additional grants of various kinds to other organizations who do good works. You add all those up and that's quite a significant contribution."
Meantime, Council also decided to re-visit the portion of the policy which limits tax exemptions to supportive housing providers who restrict the length of stay to under two years. "What I'm hearing from some of the housing providers," says Councillor Michele Rule, "is that the two year period is a number we picked but is not necessarily the magic number for when someone doesn't need supportive housing anymore." "There is quite a bit of concern around that." Councillor Angela Reid agreed, stating there are some jurisdictions where some housing is provided for life long use. "I think we need to revisit this," says Reid. The motion passed unanimously.
The Kelowna Chamber of Commerce was one of 13 businesses and not-for-profit organizations denied tax exemption status by the City of Kelowna. Council Monday approved about $3.1 million in municipal tax exemptions for organizations who meet the city's specific criteria. Included on the list are 5 new organizations, including the John Howard Society supportive housing complex on St. Paul Street, Kelowna Alzheimer Society of B.C. on Bernard Avenue, B.C. Conference of Mennonite Brethren Churches on Hwy 33, Aberdeen Hall Property Society on Academy Way and the new H2O Aquatic Centre.
According to Revenue Manager, George King, the Chamber of Commerce was denied an exemption because "the nature of the organization does not meet the criteria outlined outlined in the Permissive Tax Exemption Policy 327 Schedules A through I." Another 21 organizations will pay 80 per cent of their allotted tax bill as they find themselves in the final year of a five year phase out schedule. The phase out schedule was adopted in 2006 after council amended the Permissive Tax Exemption Policy which provided context to the eligibility criteria.
However, as was noted by several councillors, that $3.1 million in exemptions ends up being spread among the entire tax base. "When we give exemptions, we are simply shifting costs to other taxpayers and everybody does good things, but everybody can't be exempt from taxes because we all need services," says Councillor Robert Hobson. "In addition to the over $3.1 million that we forgive for organizations who do good works, we provide a whole range of additional grants of various kinds to other organizations who do good works. You add all those up and that's quite a significant contribution."
Meantime, Council also decided to re-visit the portion of the policy which limits tax exemptions to supportive housing providers who restrict the length of stay to under two years. "What I'm hearing from some of the housing providers," says Councillor Michele Rule, "is that the two year period is a number we picked but is not necessarily the magic number for when someone doesn't need supportive housing anymore." "There is quite a bit of concern around that." Councillor Angela Reid agreed, stating there are some jurisdictions where some housing is provided for life long use. "I think we need to revisit this," says Reid. The motion passed unanimously.
1 comment:
Excellent decision by the Kelowna Council.
The Kelowna Chamber of Commerce spent over $200,000 to bring in the lying Bill Clinton for a night and had the audacity to ask for Tax-exemption.
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