Permissive Tax Exemptions 2014

In 2014 the permissive tax exemption will be capped at 1.2% of the prior year’s property taxes or $52,814. As a result some buildings that had previously been exempt form property taxes will now contribute a small portion (12.2%) of the property taxes due. 

What are property tax exemptions?

Property tax exemptions come in two types; Statutory and Permissive. 

Statutory tax exemptions are authorized by the province and are mandatory. The town has no choice but to exempt these properties from property tax. The statutory exempt properties include properties held by the province, municipalities, regional districts, libraries, hospitals, schools, cemeteries and places of worship. For some properties such as those for public worship, the statutory exemption is limited to the building and the land beneath the building, and not, for example, parking lots.

Permissive Tax exemptions are authorized under the community charter and granted annually by the town council. The authority to grant permissive tax exemptions is a policy tool available to municipalities to promote or achieve specific goals. Permissive Tax exemptions are discretionary and can be granted to a much wider range of properties including property owned by a not-for-profit corporation, property owned by a local authority, and property occupied by a not-for-profit. 

Why did council set a cap?

Permissive tax exemptions have been granted in Golden for several years and have been steadily increasing every year with currently over 30 applicants. In 2013 the town granted permissive tax exemptions totalling $58,657. This represents 1.39% of the total revenue from taxation, revenue that must be made up by increasing property taxes for the vast majority that do not enjoy an exemption. 

Council felt that, although it wished to continue supporting organizations with permissive tax exemptions because they provide valuable services to our community, capping the total amount at 1.2% of the total revenue from taxation was appropriate in the current economic climate.

Who will be affected?

The permissive tax exemption for 2014 is capped at $52,814. This represents approximately 87.7% of the total applications for permissive tax exemption received by the town. Council decided to distribute this grant proportionately to all applicants such that every applicant will now be responsible for paying a small portion (12.3%) of the property taxes due. 

A complete list of 2014 permissive tax exemptions is a matter of public record and can be obtained from the town office.

I want your opinion

I would like to get your feedback on the subject and have created a short 3 question survey. I would appreciate your time to complete the survey. Your responses will influence the way I vote at council meetings.

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Thanking you in anticipation.

The opinions expressed in this Blog are my personal opinions and may not represent the opinions of other Councillors nor the opinions of council.