PERMISSIVE TAX EXEMPTION POLICY

Transcription

1 PERMISSIVE TAX EXEMPTION POLICY BOWEN ISLAND MUNICIPALITY MISSION STATEMENT In carrying out its mandate, Bowen Island Municipality will work towards conducting operations in a way that: 1. Improves the economic, environmental and social well-being for present and future generations; 2. Encourages and fosters community involvement; 3. Enhances the small, friendly, caring character of the community; 4. Maintains an open, accountable, and effective operation; and 5. Preserves and enhances the unique mix of natural ecosystems and green spaces that Bowen Island possesses. POLICY OBJECTIVES Bowen Island Municipality recognizes the significant contributions of charitable, philanthropic and not for profit organizations and volunteers to the cultural, educational, physical well-being, social and spiritual benefit of the community. Together, with the Community Grants and Grants-in-Aid programs, permissive tax exemptions are a means for Council to support organizations within the community that further the quality of life and provide benefits to Bowen Island residents. PURPOSE The purpose of the Permissive Tax Exemption Policy is to define the objectives and outline processes and criteria in order to provide clarity, consistency and certainty to the municipality, the public and applicant organizations. Permissive Tax Exemption awards effectively shift the Municipal, Regional District and Islands Trust tax burden from the applicant organization to the remaining taxpayers in the Municipality. Council must therefore consider the cost to the taxpayer when approving permissive tax exemptions. Pursuant to section 224 of the Community Charter, Council may exempt from property tax lands and improvements owned or held by organizations providing services which Council considers directly related to the purposes of the organization. It also provides for permissive tax exemptions for some properties which are additional to statutory exemptions under Section 220, such as church halls or land surrounding places for public worship. RESIDENCES: Permissive tax exemption will not be granted for residences located on the property. Applicants must declare whether there is a residence on the property, and the value of the residence will be calculated as follows:

2 1. Square footage of all residential premises X BC Assessment Value of Buildings Total square footage of all buildings on the property Plus: 2. Square footage of the footprint of residential buildings X BC Assessment Value of Land Total square footage of all land included in property The value of the residence will be deducted from the value of the exemption. FINANCIAL CAP: Council has implemented a financial cap to limit the overall value of Permissive Tax Exemptions. This Cap provides certainty and predictability to the financial planning process, ensuring no unusual spikes to tax levies in a given year as a result of the granting of new permissive tax exemptions. The value of all Permissive Tax Exemptions granted by Council for those properties not owned or held by the Municipality may not exceed 1.5% of the previous year s tax property tax levy. MULTI-YEAR EXEMPTIONS: Council may by resolution, decide to award an exemption for a period in excess of one year. An exemption of up to ten years is permitted under the Community Charter, however, despite such provision, exemptions should be limited to no more than four years in order to provide for periodic review of the application. Organizations in receipt of a multi-year exemption will be required to submit to the Financial Officer, before June 30 each year, most recent financial statements and proposed budget as well as a letter confirming the following conditions: 1. That the organization continues to own the subject property, and expects to own it for the following year; 2. That the organization continues to be eligible for permissive tax exemption per section 224(2) of the Community Charter; 3. That the purpose and programs of the organization for which exemption was initially granted will remain unchanged for the upcoming year. An organization granted a multi-year exemption by resolution of Council will continue to be exempt for the duration of the exemption period, providing it meets the above noted conditions, and can demonstrate financial need. Irrespective of the duration of the exemption, Council will adopt a Permissive Tax Exemption Bylaw each year. The total value of the exemptions will be considered with regards to the Financial Cap. If the total value of the proposed exemptions in any given year exceed the limit prescribed by the Financial Cap, then a uniform reduction factor will be applied to all

3 exemptions in order that each application is reduced relative to its proportion of the total value. ELIGIBILITY CRITERIA: a) An organization must meet the conditions specified in the Community Charter, Division 7, Section 224(2). b) The use of the property must be consistent with municipal policies, plans, bylaws, codes and regulations. c) Applicants must demonstrate financial need and sound financial management by submitting at a minimum, prior year financial statements, and a current year budget. d) Organizations applying for exemption must improve the overall well-being of Bowen Island residents as evidenced by: Having a broad base of community support or membership and/or Being accessible to a significant portion of Bowen residents and/or Meeting the needs of a large number of Bowen residents and /or Contributing to the economic well-being of the Island and/or Providing a service that Council considers an extension of Municipal Services APPLICATION PROCEDURES 1. Applications for permissive tax exemptions must be made using the permissive tax exemption application form included as Schedule 1 with this policy. Applications are due by June 30 th, and if approved, will be effective for the following tax year. 2. A site plan or drawing must be submitted showing property boundaries, location, and size of all buildings, residences, parking lots and activity areas. Drawing shall include notes indicating purpose and uses of the structures/areas. 3. Council will consider all applications on an individual basis. Proposed exemptions must be given public notice in accordance with section 227 of the Community Charter. The Permissive Tax Exemption bylaw must be adopted by October 31 of each year. 4. Organizations that have been granted a multi-year exemption will be required to provide the Municipality annually with confirmation that the organization continues to qualify for exemption based on the same criteria under which the exemption was originally granted. Policy adopted at the Regular Meeting of Council Held, 20. [Original signed] Jack Adelaar, Mayor [Original signed] Kathy Lalonde, Chief Administrative Officer

4 Appendix 1. Official Community Plan Section Twelve Fundamental Goals 1. To preserve and protect the unique amenities and natural environment of Bowen Island for the benefit of Bowen Island residents and, generally, for residents of British Columbia. 2. To recognize the importance of the marine environment and preserve a marine-oriented community and island atmosphere. 3. To provide environmental stewardship strategies, to be followed by residents and visitors alike, that recognize societal responsibilities, as well as the rights of property owners. 4. To minimize Bowen Island s contribution to global climate change. 5. To establish a land use pattern which places high priority on environmental and social factors. 6. To manage growth in a way that it is conditioned by the natural environment and respects social and economic diversity. 7. To be inclusive by welcoming residents with varying income levels, lifestyles and age groups, 8. To ensure a healthy community, with residents working together to improve the quality of life. 9. To ensure that a balance is maintained between community well-being and the rights of individual property owners. 10. To foster the creation and maintenance of local employment in island-based sustainable activities. 11. To recognize Snug Cove as the commercial and community heart of Bowen Island, and to provide for the expansion of commercial, residential, and community and cultural uses that will contribute towards a pleasant, walkable village, appropriate in form and scale to a small community. 12. To engage other levels of government and non-governmental organizations to accomplish the objectives and policies of this OCP.

5 APPENDIX 2 Official Community Plan - Section 8 & 9 Objectives Objective 152 To support strong social ties and increased sense of community through providing places where neighbours can meet and recreate together and support each other in times of need. Objective 153 To provide for public services and facilities that meet the needs of the community, consistent with the spirit and intent of this OCP. Objective 154 To ensure that sufficient space is reserved within Snug Cove Village to accommodate community recreation, social, cultural, educational and civic uses that are accessible to all members of the community. Objective 155 To promote and support the concept of lifelong learning for members of the Bowen Island community, from pre-school children to older adults. Objective 156 To encourage the development of a multi-use facility for the performing arts, social, recreation and community events at a scale in keeping with the island community. Objective 157 To support locally based schools in order to meet the needs of the existing and future population. Objective 158 To promote volunteerism and encourage residents to take an active role in caring for and enriching the community. Objective 159 To maintain a level of fire, ambulance, police, emergency planning services, animal control, library facilities, and postal services commensurate with need. Objective 160 To advocate for strategies and develop resources for individual and collective support in times of unexpected and systemic events such as infrastructure failure and climate change impacts. Objective 161 To recognize a broad range of religious denominations and to recognize places of worship as being important spiritual and cultural assets of the community. Objective 162 To support the maintenance of Camp Bow-Isle in a manner that allows for its continuing operation and allow for the development of similar non profit institutional facilities that provide for spiritual, educational or recreational pursuits while ensuring that such developments have no adverse effects on the island character and its natural resources. Objective 163 To provide for the needs of residents to allow them to continue to live on Bowen Island as they age. Objective 164 To enhance recreation for island residents. Objective 165 To protect and encourage the preservation of heritage values on Bowen Island. Objective 166 To identify areas that merit consideration as heritage conservation areas Objective 167 To encourage and facilitate the identification, protection and conservation of archaeological sites protected under legislation within the OCP area. Objective 168 To encourage and support the growth of arts and cultural activities, as outlined in the Cultural Master Plan.

6 Bowen Island Municipality-Permissive Tax Exemption Policy Schedule 1

7 PERMISSIVE TAX EXEMPTION APPLICATION FORM Due Date: June 30 th Instructions: 1. Save the application form as Organization Name before you fill in; 2. Complete application in space provided; 3. Once application is complete save the document in your files; 4. Send the completed application form, and any additional documentation, to with Subject: Supporting Information for (Name of Organization) PTE Application; 5. If unable to , please print and hand-deliver to Municipal Hall, 981 Artisan Lane. Organization Details: Name: Address: Phone #: Website: Type of Organization: Registered Charity Not for Profit Society Unincorporated Association Registered Charitable No. Society No. Contact Details: Name: Address: Phone #: Website: Permissive Tax Exemption Application Form Page 1 of 5

8 Information about the Organization: 1. If the organization applying for a tax exemption is not the registered owner, provide details describing the legal or contractual relationship between the property owner and organization making this application. Documentation verifying the organization s requirement to pay property taxes, and a letter of support from the registered property owner must be attached. Briefly describe the core objectives of your organization (if applicable include a copy of the incorporation documentation that describes the purpose of your organization): 2. Attach a list of Directors and Officers of your organization. 3. How many participants does your organization serve? 4. Of the participants, how many, or what % are Bowen Island residents? 5. Provide information about any major partnerships or alliances with other Bowen Island organizations: 6. Does your organization use Volunteers? Yes No If Yes, the Municipality is interested in determining the value of the volunteer contributions. Please see the following website as a resource to answer the questions relating to volunteers. (If possible, please attach the worksheet used to calculate the volunteer contribution) How many volunteers are involved? How many volunteer hours are contributed? What is the value of the volunteer contribution? Permissive Tax Exemption Application Form Page 2 of 5

9 Information about the Property: 7. Identify the folio number and provide legal description of each parcel of land for which exemption is being applied for: BC Assessment Roll Number Legal Description of Property 8. Describe the primary use of the property: 9. Describe any uses of the property unrelated to the primary purpose of the organization. What percentage does this use represent? 10. Briefly describe how the use of the property benefits Bowen Island residents and/or the community: Permissive Tax Exemption Application Form Page 3 of 5

10 11. A.) Is there a Residence on the Property? If so, describe the nature of any residential occupation of any part of building(s) located on the property (indicate the location on the site plan or drawing): B.) What is the Roll Number of the parcel containing the Residence? Calculate based on Current Year Assessment: Square footage of residential premises Total square footage of all buildings on the property X BC Assessment Value of Buildings = Non-Exempt Value of Buildings Square footage of the footprint of residential premises Total square footage of land included in parcel X BC Assessment Value of Land = Non-Exempt Value of Land 12. How does this property or facility meet one of the objectives contained in Section 8 or 9 of the Official Community Plan? (See Permissive Tax Exemption Policy, Appendix 1) 13. How does this facility meet one of the fundamental goals identified in Section of the Official Community Plan? (See Permissive Tax Exemption Policy, Appendix 2) 14. Are there similar services or facilities currently being offered on Bowen Island? If so, how does your organization complement existing services? Permissive Tax Exemption Application Form Page 4 of 5

11 15. How will you express acknowledgement to the Bowen Island Community in respect of the exemption? Declaration of Officers: We are authorized directors of the organization and we certify that the information given in this application is correct. Should a permissive tax exemption be granted on the above listed property, we agree to the following terms: If the property is sold prior to the exemption expiration, the organization will remit to Bowen Island Municipality an amount equal to the taxes that would have otherwise been payable by a non-exempt owner for the remainder of the year in which the property was sold. The property use will be in compliance with all municipal policies and bylaws. The organization will publicly acknowledge the permissive tax exemption granted by the Municipality. Name & Position Signature Date Name & Position Signature Date CHECKLIST HAVE YOU INCLUDED? Site Plan showing location of Improvements & Residence if Applicable Financial Statements most recent Annual Balance Sheet, Income Statement, Budget List of Directors and Officers Letter of Support from Registered Property Owner (if applicable) Documentation supporting requirement to pay property taxes if not the registered owner Copy of Resolution of Board of Directors to apply for Exemption Permissive Tax Exemption Application Form Page 5 of 5