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Home My WebLink AboutTR-08-01 ,)1:-. ... ~ . :....; . THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Report #: TR-08-01 File#: File # 121 . Res.#:(;/I1-/Y/-o I By-Law#:~/-t1 </1 Meeting: General Purpose and Administration Committee Date: February 19, 2001 Subject: REQUEST TO COUNCIL TO EXEMPT CLARINGTON BRANCH 178 OF THE ROYAL CANADIAN LEGION FROM MUNICIPAL PROPERTY TAXES Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT TR-08-01 be received; 2. THAT Council authorize exemption of local property taxes on the property in Clarington owned by the Clarington Branch 178 of the Royal Canadian Legion, pursuant to Section 207(62) of the Municipal Act commencing in 2001;. 3. THAT Staff request to the Region of Durham that the Regional portion of property taxes be exempted pursuant to Regional Report #2001-F-16 commencing in 2001; and 4. THAT a request be sent to the Province for exemption of the Education portion of property taxes for this property. Background and Comment: In accordance with Section 207(62) of the Municipal Act, lower-tier and single tier municipalities may provide exemptions to Royal Canadian Legion facilities. Under this section, by-laws may be passed by the Council of all municipalities (lower-tier and single tier): "For exemption from taxation, except for local improvements and school purposes for a period not exceeding ten years, any premises used and occupied as a memorial home, clubhouse or athletic grounds by persons who served in the armed forces of Her Majesty or Her Majesty's allies in any war". The Region of Durham report is attached for information. 907 . , Report TR-08-01 REQUEST TO COUNCIL TO EXEMPT CLARINGTON BRANCH 178 OF THE ROYAL CANADIAN LEGION FROM MUNICIPAL PROPERTY TAXES Page 2 It is recommended that a request be sent to the Province to exempt the education portion. However, this is subject to Provincial jurisdiction and Section 207(62) does not currently allow for an exemption for school purposes. Conclusion: Section 207(62) provides the basis for this exemption for a maximum of ten years. It is proposed that this commence in 2001. Respectfully submitted, Reviewed by, Or Franklin Wu, Chief Administrative Officer. MM/NT/hjl 908 Attachment #1 January 31, 2001 TO: Finance and Administration Committee FROM: R. J. Clapp, Comrnissioner of Finance RE: REPORT #2001-F-16 REQUEST FROM THE TOWN OF AJAX TO EXEMPT AJAX BRANCH 322 OF THE ROYAL CANADIAN LEGION FROM REGIONAL PROPERTY TAXES RECOMMENDATIONS: The Finance and Administration Cornmittee recommend to Regional Council that (1) The Region of Durham concur with the request of the Town of Ajax to exempt Ajax Branch 322 of the Royal Canadian Legion from the Regional portion of property taxes in the amount of $4,358.84 for 2000 and in future years in accordance with Section 207(62) of the Municioal Act; (2) Any Mure requests of the Region from the Area Municipalities to provide exemption of the Regional portion of the property taxes owing for branches of the Royal Canadian Legion be granted in conjunction with exemptions granted by the Area Municipality for the local share of property taxes pursuant to Section 207(62) of the Municipal Act: and (3) The issue of tax exemption status for charities and non-profit organizations in the Region be reviewed as part of the Region's comprehensive examination of tax policy options pursuant to the Continued Protection for Prooertv Taxoavers Act. 2000 to be completed later this year. REPORT: 1.0 INTRODUCTION: · In correspondence dated November 13, 2000, Mr. G.D. Kirkbride, Director of Finance of the Town of Ajax, requested that the Region of Durham give consideration to the exemption of 2000 property taxes totalling $4,358.84 on a property in Ajax owned by the Ajax Branch of the Royal Canadian Legion. 9r9 REPORT #2001-F-16 REQUEST FROM THE TOWN OF AJAX TO EXEMPT AJAX BRANCH 322 OF THE ROYAL CANADIAN LEGION FROM REGIONAL PROPERTY TAXES PAGE 2 . The request of the Region to exernpt property taxes is in keeping with a resolution adopted by the Council of the Town of Ajax on April 3, 2000 under Section 207(62) of the Municipal Act exempting the Ajax Branch of the Royal Canadian Legion from paying the Town's portion of local property taxes, excluding local irnprovernents and school purposes. 2.0 BACKGROUND . In June 2000, the Finance Departrnent of the Region of Durharn distributed a draft discussion paper among the Area Treasurers for review on the tax treatrnent of charitable and non-profit groups, including Legions. . To date the feedback received by the Finance Department has focussed primarily on the taxation of Legions. 3.0 EXEMPTION OF PROPERTY TAXES FOR LEGIONS . In August of 1998, as part of Regional tax policy in accordance with the Small Business and Charities Protection Act, Regional Council approved a minirnurn rebate for registered charities, sufficient to compensate them for the payrnent of business occupancy taxes from which they were previously exempt. The same minirnum rebate . formula applies on a Region-wide basis to area municipal, Regional ....--- and education taxes. . In the meantime, some ofthe Area Municipalities have received requests from their Local branches of the Royal Canadian Legion for exemption from payment of their entire orooertv tax bill. · In the past, the City of Pickering responded to Branch 483 of the Royal Canadian Legion by exernpting it frorn both local and Regional taxes. · Also the Township of Uxbridge exempted Branch 170 of the Legion frorn both local and Regional taxes for 1998, 1999 and 2000 by providing a grant sufficient to pay the Regional property taxes pursuant to Section 113(1) of the Municipal Act (ie. Authority to provide a grant). 910 'REPORT #2001-F-16 REQUEST FROM THE TOWN OF A.JAX TO EXEMPT A.JAX BRANCH 322 OF THE ROYAL CANADIAN LEGION FROM REGIONAL PROPERTY TAXES PAGE 3 . In accordance with Section 207(62) of the Municipal Act, lower-tier and single tier municipalities may provide exernptions to Royal Canadian legion facilities. Under this section, By-laws rnay be passed by the councils of all rnunicipalities (lower tier and single tier): "For exempting from taxation, except for local irnprovernents and school purposes, for a period not exceeding ten years, any premises used and occupied as a mernorial home, clubhouse or athletic grounds by persons who served in the armed forces of Her Majesty or Her Majesty's allies in any war." 4.0 CONCLUSION . The Treasurers of the Area Municipalities and the Region have generally agreed that the application of Section 207(62) of the Municipal Act is the best legislative vehicle to grant tax exemption status to branches of the Royal Canadian Legions. . Under this arrangement, local councils would inform the Region whenever they apply Section 207, in response to which the Region would forgive the Regional portion of the Legion's taxes. . At the request of a local rnunicipality, the Province could, if it so chooses, provide a matching exemption of school taxes. .~. . The continued use of Section 207 of the Municipal Act will be revisited when the Region and Area Municipalities conduct their cornprehensive exarnination of tax policy options to rneet the requirements of the new property tax legislation. ~6kb - -~ R. J. app, cA, , Cornmissioner of Finance Recornrnended for Presentation to Committee: G.H. Cubitt, Chief Administrative Officer Attach. MGIREPORTSlajax legion 911