HomeMy WebLinkAboutCS 02/99
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REPORT TO COUNCIL
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: Novcmbcr 30, 1999
REPORT NUMBER: CS 02/99
SUBJECT:
Royal Canadian Legion Branch 483 - 4937 Brock Road NOI1h, Claremont
Requcst for Exemptions from Property Taxes
RECOMMENDATION:
That Report CS 02/99 of the Director, Corporate Services &Treasurer be received and that:
I. the Royal Canadian Legion Branch 483 (Claremont) be granted an exemption from
property taxes for a period not exceeding ten years effective January 1, 1999;
2. the Regional Municipality of Durham be notified of the changc in tax status for Legion
Branch 483 resulting from Recommendation No.1;
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3. the Director, Corporate Services & Treasurer write the Minister of Finance, to inform the
Minister of the tax exempt status of Legion 483 and of the granting of charity property tax
rebate for Legion 606 in an attempt to obtain Provincial funding for the education portion
or their property taxes;
4. the necessary By-Law as contained in Schedule A be read three times and passed; and,
5. the appropriate staff of the Town of Pickering be given authority to give effect thereto.
ORIGIN
Director, Corporate Services & Treasurer
AUTHORITY:
Municipal Act R.S.O. 1990, as amcnded, Section 207.62 and Regulations.
FINANCIAL IMPLICATIONS:
Legion Branch 483 (Claremont)
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The 1999 total tax liability for this property is $5,951.80. If Council approves the property tax
exemption, the Claremont Legion would only be liable for the education portion of their
property taxes. The Minister of Finance would then be requested to provide offsetting funding
for this portion. The Town's loss of tax revenue for 1999 would be $1,400. It is difficult to
estimate the ten year loss of revenue for the Town clue to potential changes in the tax rate ancl
assessment.
Report to Council CS 02/99
Date: November 30, 1999
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Subject: Royal Canadian Legion Branch 483 -- 4937 Brock Road NOlih, Claremont
Request for Exemptions from Property Taxes
Page 2
Legion Branch 606 (Bayly St.)
For Legion Branch 60(J, the Town of Pickering will provide a grant through the Charities
(Property) Tax Rebate program in the amount of$886.90 for 1999.
The rebate is shared among the Town, Region and Local Sehool Boards on the basis of
respective share of taxation. The Town's cost of this rebate is $124.16.
EXECUTIVE SUMMARY:
In November, 1998, the President of Branch 483 (Claremont) at the above mentioned address
wrote to the Clerk of the Town of Pickering requesting an exemption from taxes under the
Municipal Act (copy attached). The Clerk then forwarded the request to the Treasurer. Many
aspects have been researched since then and staff expanded the request to include the only other
Legion identified within the municipality. The correspondence from the Royal Canadian Legion
was reviewed and the assessment roll for the Town of Pickering was examined to see if other
similar properties could be identified. Other lakeshore municipalities were also contacted to
learn of their handling of similar situations.
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The municipalities of Ajax, Oshawa and Whitby all have Canadian Legion branches. It is our
understanding that these properties are assessed as residential and have experienced a decrease in
their taxes as a result of current value assessment. Furthermore, there does'not appear to be any
other multicultural, veterans, religious or other similar situations in Pickering that might also
request a tax exelllption under the provisions contained in the Provincial legislation,
This report deals not only with the request from Branch 483 but also with the only other such
facility identified, Branch 606 (Bayly St.).
BACKGROUND:
There are currently two Legion veteran associations that operate a facility in the Town of
Pickering, The application of a tax relief strategy is different for both organizations due to the
fact the properly they occupy falls under two different realty classes. The tax relief strategy is
lIwinly dependent upon the property's realty tax class. Table one provides a summary and
comparisoll of the various options.
Table One - Comparison of Tax Relief Strategies & Application
Realty Tax Class
Legion Branch 483
Claremont
Residential
Legion Branch 606
1555 Bayly S1.
Commercial - tenant in
a plaza.
Was applied.
Education taxes
N/ A - only applies to those
charities that occupy either
industrial or commercial space.
Section 207, subsection 62 of the
Municipal Act allows the Town
to pass a bylaw to waive the
lower and upper tier taxes
Still Liable to pay. Staff will try
to get the Province to nav the
N/A
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Registered Charity Tax
Rebate - (Section 442.1 oj
the Municipal Act)
Exemption from Taxes
May be exempt. Letter
from Minster of Finance
Report to Council CS 02/99
Date: November 30, 1999
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Subject: Royal Canadian Legion Branch 483 - 4937 Brock Road North, Claremont
Request for Exemptions from Property Taxes
Page 3
Exemption from assessment
Requires "Private Members Bill."
Gcncrally not favorcd as property
must be monitored in case of
change of ownership. Hides cost
of indirect "grant".
indicate tax relief may
be provided.
N/A
education taxes.
Legion Branch 483 (Claremont)
The building in question is owned by the Claremont Legion. There are several courses of action
that can be followed in situations like this:
. a grant from the municipality to offset the taxes payable;
. an exemption from assessment; or
. an exemption from taxes;
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In the past, many municipalities have favored a grant, as a grant to offset taxes is no different
than one to offset other expenditures and it ensures that the matter would come up for
consideration from time to time through the municipal budget process otherwise it becomes a
non-budget expenditure or loss of revenue. The short come of this option is that the local
municipality bears the entire cost of the grant. If this option is chosen the grant amount for 1998
would be $6,891.58 and for 1999 the amount is $5,951.80.
An exemption from assessment would require a special act called a Private ,'v[embers Bill of the
Ontario Legislature and the process would have to be explored further if this was the chosen
option. The benefit of an exemption from assessment is that all taxing bodies, i.e. local
municipality, upper tier and school boards share in the lost revenue and a higher mill rate is
charged by all bodies on the remaining taxpayers in the municipality. In the regional situation
such that we have in Durham all other properties in Durham in which the region and school
board tax would be subject to a proportionally higher tax rate as a result of this. The shortcome
of this option is the exemption remains in effect, even if the use changes, until another Bill is
introduced in the house.
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The third altemative is the exemption from taxation as permitted under the Municipal Act,
Section 207, Subsection 62. The Town of Pickering has the authority to pass a bylaw to exempt
the Canadian Legion from taxation, except for school purposes, for a period not exceeding ten
years. Staff would notify the Region of the bylaw and the corresponding reduction in the
Region's taxation revenue. The Town of Pickering would then petition the Provincial
Govell1l1lent (Minister of Finance) to pay the education portion of the Legion's property taxes.
(The Minister of Finance's offer to pay for the educational portion of property taxes was made in
conjunction with the use of the Charitable Property Tax Rebate scheme. The Town of Pickering
is using a different tax tool to provide tax relief and are not sure if the Minister would still pay
the education taxes.) If the Town is unsuccessful, Legion Branch 483 would be liable for the
education portion of their property taxes which is equivalent to $1,625 or 27.3 per cent of their
1999 tax bill. Under this option, the loss of taxation revenue would be limited to the Town's
portion which would be $1,400 in 1999.
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The Regional Municipality of Durham be notified of the change in tax status for Legion Branch
483 resulting from Recommendation No.1. The attached By-Law has been reviewed by the
Town Solicitor and approved as to foml.
Legion Branch 606 (Bayly St.)
One other Legion (Branch 606) was identified at 1555 Bayly Street. The property tax situation
for the South Pickcrinl!: location however. is not the same as Claremont. The South Pickering
Report to Counei I CS 02/99
Date: November 30, 1999
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Subject: Royal Canadian Legion Branch 483 - 4937 Brock Road North, Claremont
Request for Exemptions from Property Taxes
Page 4
Legion is a tenant of a commercial property and as such are eligible for the Charity (Property)
Tax Rebate of a portion of their annual taxes under Paragraph I of Subsection 442.1 (3) of the
Municipal Act, if they arc a Registered Charitable Organization. Staff have contacted the
Ontario Command of the Royal Canadian Legion and have been provided with the Registered
Charity Number. (Prior to the 1998 taxation year, Registered Charities occupying commercial or
industrial property were taxed at the residential rate and were exempt from the Business
Occupancy Tax.) The Charity Tax Rebate available under the Municipal Act is basically
designed to return the charities to their former tax position by providing a rebate equivalent to the
Business Occupancy Tax. Legion Branch 606 will receive a cheque in the amount of$886.90 [or
their 1999 Charity (Property) Tax rebate. This rebate is shared among the Town, Region and
Local School Boards.
The Legion will have to apply annually to the Town for continuation of this rebate. No action is
required by Council for the Legion to receive this rebate.
In an attempt to provide further tax relief, the Town of Pickering would petition the Provincial
Govemment (Minister of Finance) to pay the education portion of the Legion's propelty taxes.
The attached letter from the Minister of Finance to City of Toronto Councillor Frances Nunziata
indicates that the Province may be willing to absorb the education taxes. The education taxes for
the Bayly Street Legion are estimated to be $6,700.00.
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ATTACHMENTS:
Letter from President, Branch 483
Letter from Ernie Eves, Minister of Finance
By-Law To Provide the Royal Canadian Legion Branch 483 an Exemption from Property
Taxation
Prepared By: Approved / Endorsed By: .
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Gillis A. Paterson,
Director, Corporate Services & Treasurer
Stan Karwowski,
Manager of Finance
GAP:vw
Attachmcnts
Copy: Jane Burton, Town Solicitor
Bruce Taylor, Town Clerk
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Recommended [or the consideration of
Pickering Town Council
Thomas J. uinn, Chief Administrative Officer
ATTACHMENT #-1-.. TO REPORT' ('5' oJ.!ClC,
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THE ROYAL CAi"TADIA1"\f LEGION
BRA1"\fCH 483
4937 BROCK ROAD N.
CLAREMONT, ONTARIO L1Y lA6
905-649-3166 F A..,"'( 905-649-1119
Town of Pickering
Atm: Bruce Taylor, Town Clerk
One The Esplanade
Pickering, Ontario
Dear Bruce,
Re: Tax exemption for Legion Branches
Please consider this a formal request, on behalf of Royal Canadian Legion Branch 483, for a tax
exemption under the Municipal Act of Ontario, Chapter 302, Section 208, Paragraph 60. We are
not the first Branch within the Province to request this exemption. As a mater offact, branches
have been receiving this tax break for a number of years.
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Paragraph 60 states and provides for the exemption taxation thus: '...except for local .
improvements and school purposes, for a period not exceeding ten years, any premises actually
used and occupied as a memorial home, clubhouse, or atWetic grounds by persons who served in
the armed forces of her majesty or Her Majesty's allies in any war.' Legion grounds and premises
fall under the above classification.
The Royal Canadian Legion has long stood for service to our country, veterans, seniors, youth,
community and civic responsibilities. It has done so proudly and to the best of its' abilities. It has
never varied in this commitment. Recent changes in the social and economic climate have created
financial hardship for many within our Municipality. Branch 483 has been no exception. We are
struggling to maintain our service commitments. For this reason only, we request the 'ten year'
tax exemption. It is viewed as a needed bridge to a viable future.
Please inform us if anything more is required, or if we can be of any further assistance. Your aid
in this matter is greatly appreciated.
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C. Farragher
President, Branch 483
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Ministry of Finance
Office of the Minister
Frost 8uilciing South
7 Queen's Park Cres
Toronto ON M7A 1Y7
Tel (416) 325-0400
Fax (416) 325-0374
Ministere des Finances
Bureau du ministre
Edifice Frost sud
7 Queen's Park Cres
Toronto ON M7 A 1Y7
reI (416) 325-0400
relec (416) 325-0374
ATTACHMENT # 2... TO REo'JRT # ~ O~ftc\
April 13, 1999
Ms. Fr~nces Nunziata
Councillor, York-Humber
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Met~o Hall
55 John Street, Suite 204
Toron~o ON M5V 3C6.
Dear Ms. Nunziata:
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Thank you for your ietters supporting an exemption from the
education portion of property taxes for the ~oyal C~na~ian
Legion branches.
I unde~stand and appreciate the. level.of service and benefits.
Royal Canadian Legions_.provide ~o communities throughout the
province. As you may be aware, under section 442.1 of the
MuniciDal Act, municipalities have the. power to provide
property tax rebates to charities and similar organizations.
Municipalities can determine the eligibility criteria for
similar organizations and can rebate up to 100 per cent of an
organization's property.taxes if they so choose.. The Province
'I'~ ~l s:::::':-61 ~ ~ ~ ~ :-eba'.:o p""'osr::.:-:-. ~'l:.'.:l: r::cpcG~ !c€- ae
education portion of the property taxes.
I appreciate your taking the time to bring this matter to ~y
personal attention.
Yours .sincerely,
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Ernie Eves, Q.C.
Minister of Finance
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ATTACHHENT"~ TO REPORT'~ Ck.) 1\1
:n[E CORPORATION OF THE TOWN OF PICKERING
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BY-LAW NO. 559'/cf~
Being a by-law lo provide Royal Canadian Legion
Branch 4~J an exell1plion from properly taxation
except for school purposes fC.lr a period not
exceeding ten years elTedive January 1, 1999.
WII EREAS Royal Canadian Legion Branch 483 has requested the Town of Pickering to provide
an exemption in property taxes excluding taxation for school purposes for a period not exceeding
ten years.
WH EREAS, the Town of Pickering under the Municipal Act, R.S.O., 1990, as amended, Section
207.62 may pass a bylaw to exempt from taxation any premises used by persons who served in
the armeu forces of lieI' Majesty.
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF
PICKERING IIEREI.3Y ENACTS AS FOLLOWS:
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I. That Royal Canadian Legion Branch 483 located at 4937 Brock Road North in the
tvlunicipality of the Town of Pickering be exempt frol1ltaxalion except for school purposes
for a period not exceeding ten years effective January 1,1999.
2. [I' the property is sold, leased, or the use changes, the property taxation exemption ends when
legal title is transferred, or when the lease agreement comes into effect, or when the use
changes.
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3. This By-law comes into force on the date of its passing.
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BY -LA W read a first, second and third time and finally passed this
day of
, 1999.
Wayne Arthurs, Mayor .
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Bruee Taylor, Clerk