Opposition mounts to city’s church tax plan

JOHN MOORHOUSE 10/19/2009 Penticton Herald:

While opposition begins to swell against Penticton city council‘s proposal to tax certain churches and non-profit groups, a special meeting to address the issue will be held later this week. Mayor Dan Ashton said because of the lengthy agenda for tonight‘s council meeting, a separate session will be held later this week. Details are expected to announced this evening. At its Oct. 6 meeting, council voted narrowly in favour of removing part of the tax exemptions from 24 churches and other organizations, starting with a 10 per cent reduction in 2010. Similar reductions will follow in 2011 and 2012. One of the criteria for being excluded from the city‘s tax exempt list is whether an organization has more than $50,000 in working capital. Organizations with less cash-on-hand will continue to be tax-exempt. Ashton said this week‘s special meeting will allow more time for people to discuss the proposal further.

“The process will be as open and as transparent as anything council has ever done during our term,” he said. A separate meeting was held last week between Coun. Dan Albas, three clergy members and senior city staff. Commenting afterwards, Tom Siddon who serves as a warden (layman trustee) with St. Saviour‘s Anglican Church, said opposition to the proposal is building substantially. “There‘s a lot of correspondence and outcry coming into City Hall,” he said. “A large number of people want a chance to have a say. There was no consultation.” Siddon said the $50,000 figure was arbitrarily chosen and wonders why churches were told to disclose all their financial assets, rather than just their income and expenses. He noted only 37 per cent of St. Saviour‘s property at Winnipeg Street and Orchard Avenue is covered by the church and its Ellis Chapel. The balance which the city wants to tax includes the Soupateria and meeting rooms for such organizations as Alcoholics Anonymous and the Community Outreach Centre. “As much as you wouldn‘t tax city property, you shouldn‘t tax church properties that are being used for the public good,” Siddon said. “I think the principle is wrong. These are not commercial businesses or private residential properties.” Ted Makar, a member of the Penticton United Church building committee, said his opposition to the tax plan extends beyond the church itself. “It‘s not just the churches. I think the whole idea of taxing all these organizations, that are there for everyone‘s good, really bothers me,” he said.

Meanwhile, Ashton said many people misunderstand what council is trying to do. He personally feels those churches which own rental homes or a rental parking lot, for example, should pay property tax on that portion of their property. “I don‘t have an issue with taxing buildings which are used for other purposes to generate revenue,” Ashton said. “But I have no intention of looking at taxing a church or a church hall.” Ashton added this was not a sudden decision. Council first directed city staff to look at its tax exemption bylaws in May. Any final decision will come after council has heard from affected organizations.