Penticton council reverses church tax decision

JOHN MOORHOUSE Thursday, October 22, 2009 Penticton Herald

To a roar of approval from an overflow crowd in council chambers Wednesday afternoon, Penticton council backed off its plan to start taxing some churches and non-profit organizations. Mayor Dan Ashton, reading from a prepared statement, said the “considerable input” received from a cross-section of the community played a major role in the decision. “Council has heard your concerns that imposing property taxes at any level on these organizations would cause a hardship and take money away from the good work these organizations are doing in our community,” he said. Ashton said council has decided to change direction and continue to provide 100 per cent tax exemption for these groups again in 2010.

Council then unanimously voted in favour of a revised tax exemption bylaw, which will receive final reading at a special meeting next Wednesday, three days before the Oct. 31 deadline for such taxation issues. The move reverses an Oct. 6 decision, when council voted 4-3 to remove part of the tax exemptions from 24 churches and other organizations, starting with a 10 per cent reduction in 2010. Further reductions would follow in 2011 and 2012. However, dozens of other organizations would retain full tax exemption. One of the criteria for being excluded from the city‘s tax exempt list was whether an organization has more than $50,000 in working capital.
This prompted a storm of protest from church leaders and others in the community who sent a flurry of letters to City Hall and local newspapers.

Retired minister Rev. Peter O‘Flynn of St. Saviour‘s Anglican Church said Wednesday council‘s reversal of its original decision was definitely welcome news, although he rejected any suggestion that St. Saviour‘s took the lead in the protest. “I think there was a swell from the wider community. It wasn‘t just St. Saviour‘s,” he said. “I think it‘s a desire to be that kind of community that supports and cares for those who are less fortunate.” O‘Flynn said he is unaware of any other community which taxes churches. He noted St. Saviour‘s paid full taxes on its former rectory. It has since sold the building and the current minister must pay taxes on his own home. Former city councillor Randy Manuel, a member of the St. Saviour‘s congregation, said he was surprised that council had considered the idea in the first place. “I was surprised that it went this far and that they didn‘t see this sort of reaction coming on,” he said. Manuel noted the money generated by the church tax would have amounted to about a dollar per every household in Penticton.

Commenting afterwards, Ashton admitted the community‘s reaction was the key that caused council to change its mind after launching the tax exemption review in May. “You have to listen to your constituents,” he said. “It was brought up about what these agencies - not only the churches but also the non-profits - do for the community.” The mayor added although the tax exemption is only for 2010, such bylaws must be adopted annually as part of the city‘s budget-taxation process.