Sally Ann ready to appeal loss of property tax break

FRIDAY, 11 OCTOBER 2013 02:00 JOHN MOORHOUSE Penticton Herald
Penticton city council's bid to eliminate property tax breaks for some selected charities isn't a done deal just yet, says a Salvation Army spokesman. Council voted unanimously this week to deny tax exemptions for six non-profit groups, while granting complete tax breaks for dozens of others. Major Dale Sobool of the Salvation Army in Penticton said Thursday it plans to appeal its tax status at the Oct. 21 council meeting. Sobool declined detailed comment at this time, but noted both sides will have an opportunity to present their cases at the time of appeal. "They'll have their point, we'll have our point and we'll see if we can meet in the middle somewhere." Sobool said the Salvation Army was certainly not caught off-guard by council's decision, noting the same thing occurred in 2012. "It's not something new," he said. "We did have to appeal last year." Council is considering withdrawing property tax breaks for those organizations with more than $100,000 in working capital. Some also don't meet the city's requirements for charitable organizations. In addition to the Salvation Army, other affected organizations include the South Okanagan-Similkameen Brain Injury Society, Penticton Seniors Drop-In Centre, Fraternal Order of Eagles, B.C. Wine Authority and B.C. Wine Information Centre. The Salvation Army, Brain Injury Society, Drop-In Centre and Wine Information Centre all received 100 per cent tax exemptions last year. Deb Clipperton, the city's acting revenue supervisor, noted tax exemptions are completely up to council. Instead of a 100 per cent tax break, council could decide to grant exemptions of 30, 50 or 75 per cent, or some other amount. Council plans to introduce a three-year tax exemption to churches and other places of worship, while more than 30 non-profit groups will receive a single-year exemption. Clipperton said all charity organizations were given advance warning that they might not qualify for a tax break. "Every year when we send out the applications, we advise everyone to make sure they budget for taxes because an exemption may not be granted," she said. Mayor Garry Litke noted the city's total tax exemptions amount to $511,000 a year, roughly equal to a two per cent general tax hike. "It's not like the receivers of this should take it as a given or a right," Litke said. "It is actually a gift from the city to them." Coun. Helena Konanz said council should consider the positive contributions from those groups who don't qualify for a tax break. "They need to have some working capital sometimes. Obviously they're not for profit organizations, so council could take that into consideration," she said. Coun. Judy Sentes said she fully supports the tax breaks. "I think this is a partnership that is an investment in social issues," Sentes said. "I know these churches all have programs for families in need and families in crisis." Council must listen to appeals from the rejected organizations at its next meeting in order to meet the Nov. 1 deadline for such changes.