Non-profit groups protest tax hike

by Elisha Dacey - Oct 8, 2009 / 12:00 pm CASTANET:

At least one local church is planning to fight a decision by Penticton City Council that could see their tax bill skyrocket to more than $2,400. Rev. Michael Stuchbery of St. Saviour's Anglican Church in Penticton says he will be meeting with his church council to discuss options after City Council voted 4-3 to remove part of the tax exemptions for non-profit groups. "Obviously, we don't have the money to fight it legally, but I would like to get together and see what we can do to fight it," says Rev. Stuchbery, adding he plans to meet with other non-profit groups and churches in the area. The removal of the tax exemption for the church could mean a tax bill of more than $800 in 2010, and that will triple by 2012. While the church building itself will not be subjected to property tax, the land surrounding it will be. "It means that there will just be that much less money for outreach," says Rev. Stuchbery, adding his church has initiated and supports a number of non-profit programs, including the Soupeteria program, the Senior's Drop-in Centre and Habitat for Humanity. "Really, the City is shooting themselves in the foot."

Earlier this week City Council voted 4-3 to axe the exemption. Penticton Mayor Dan Ashton says it was a difficult decision and he expects to hear from local groups affected by the move over the next few weeks. City clerk Cathy Ingram says the money paid in taxes by the non-profit groups will mean a savings for the average citizen, as the City will pass on the savings to homeowners. She also added the tax exemption has always been at the discretion of the council, and non-profit groups are advised to budget for possible taxes every year. Councillors Dan Albas, Garry Litke and Judy Sentes opposed the changes.