Vancouver City Council

ADMINISTRATIVE REPORT

Date: May 17, 2004
Author/Local: T. Corrigan/7225
RTS No. 03898
CC File No. 2205
Meeting Date: June 8, 2004

TO:	Vancouver City Council
FROM:	General Manager Corporate Services/Director of Finance
SUBJECT:	Grants-in-Lieu of City's General Purposes Taxes

RECOMMENDATION

THAT Council approve the grants-in-lieu of taxes for general municipal purposes amounting to $7,906.48 as set out in this report, source of funds to be the 2004 Contingency Reserve.

Approval of the grant recommendation requires eight (8) affirmative votes.

GENERAL MANAGER COMMENTS

The General Manager of Corporate Services submits the foregoing for CONSIDERATION.

COUNCIL POLICY

Since 1960, Council has awarded grants in lieu of taxes to certain charitable, religious and educational institutions to compensate them for the City portion of real property taxes paid. The policy is described in more detail in the Discussion part of this report.

DISCUSSION

Under Section 396 of the Vancouver Charter all real property in Vancouver is liable to taxation subject only to certain limited exemptions. The exemptions include property owned and occupied by charitable, religious, and educational institutions provided the property is wholly in use for the charitable, religious or educational purposes of the institution.

To be exempt for any given tax year, the property must meet all the exemption requirements at the time the assessment roll is prepared by the BC Assessment. Occasionally, property meets the exemption requirements only after the assessment roll has been prepared and, as a result, it is shown on the assessment roll as taxable. It is not exempt until the next assessment roll is prepared in the following year. In such cases, the property is liable to taxation for the full year notwithstanding that for part of the year it qualified for an exemption. This is an unintentional effect of the fact that, pursuant to the Assessment Act, the assessment roll must be prepared on an annual basis and must reflect the facts as they were on a specific fixed date in the preceding year.

Since 1960, the City has offered grants in lieu of taxes to qualifying institutions in order to compensate them for the City portion of property taxes paid while the property met all the requirements to be tax exempt, but was not exempt due to the timing of the preparation of the assessment roll. Over the years, through a series of Council decisions, the policy has been expanded and refined. Appended to this Report are copies of various Council decisions reflecting the development of the grants in lieu of taxes. The following is a restatement of the policy as developed by Council over the years:

1. To qualify for a grant in lieu of taxes, the property must be shown as exempt on the current assessment roll;

2. The institution seeking a grant in lieu must be the registered owner of the property and apply to Council in writing;

3. The amount of the grant shall, in Council's discretion, be up to the general municipal purposes taxes levied since the date on which the property met all the requirements of tax exemption;

4. In addition, Council may award a grant in lieu for a property which did not meet the tax exemption requirements due to construction, renovation or other work being performed (i.e. it was not wholly in use for a purpose of the institution). In such cases, the amount of the grant is calculated from the date of the first building inspection by the City;

5. Grants in lieu of taxes shall not be made for a period extending more than two calendar years;

6. Property taxes up to the date on which the property meets the requirements of a tax exemption, as well as, all other taxes, including local improvement charges, business improvement assessments, utility charges and taxes collected by the City on behalf of other public bodies must be paid, any unpaid amounts will be deducted from the grant.

7. Grants in lieu are discretionary and there is no obligation on Council to award one, notwithstanding that the property falls within the policy.

The following organizations have requested a grant in lieu of general taxes.

Girl Guides of Canada
1476 W. 8^th Avenue
Parcel F Block 331 District Lot 526, Plan LMP 35224

The Girl Guides of Canada was founded in 1910. Their mission is to challenge girls to reach their potential and empower them to give leadership and service as responsible citizens of the world. Their Vancouver headquarters was situated at 1462 West 8^th Avenue until their 1996 purchase and September 4^th, 1998 move to their new premises at 1476 W 8^th Avenue.

BC Assessments exempted this property on the 1999 roll under Section 396 (1)(c)(i) of the Charter. This grant is for the period from September 4, 1998 to December 31, 1998.

$ 3503.28

Pacific Children's Shelter Society
2545 W. 1^st Avenue
Lot D Block 200 District Lot 526, Plan 17734

Pacific Children's Shelter Society, a non-profit organization incorporated in 1984, owns and runs the facility known as Avalon School. Avalon School provides academics in grades 8,9 and 10, as well as recreational opportunities, life skills training, and counselling for children with challenges such as fetal alcohol syndrome and other disabilities. This charitable group began occupying this property as a tenant in the mid 1970's and paid the assessed residential rate property tax of approximately $5000 annually. In 1999 BC Assessments altered the classification for taxation purposes to the business class resulting in annual taxes of $24,000. At this time, the school contacted the City for relief as their Provincial funding could not absorb this tax increase. They achieved their current exemption after transferring the title of the property to the Society and were subsequently exempted on the 2001 roll under Section 396 (1)(c)(i) of the Charter. This grant is for the period from November 30,2000 to December 31, 2000.

$ 1,173.32

Shaarey Tefilah Synagogue Society
785 W. 16^th Avenue
Strata Lots 1, 2, 3, 4 District Lot 472 & 526 Strata Plan LMS 1748

This property has been owned and in use for religious services since January 1998.
BC Assessments exempted this property on the 1999 roll under Section 396 (1)(c)(iv) of the Charter. This grant is for the period from January 15, 1998 to December 31, 1998.

$ 842.30

The Arthritis Society
1645 - 1663 W. 7^th Avenue
Lot H Block 289 District Lot 526 Plan LMP 3447

The Arthritis Society is a non-profit organization dedicated to providing and promoting arthritis education, community support and research -based solutions. The Society's BC and Yukon division office relocated in October 2001 from 895 West 10^th Avenue to 1645 West 7^th Avenue. The move was necessary to accommodate the growth of the Arthritis Research Centre of Canada and its integration with the Mary Pack Arthritis Program at the original property. BC Assessments exempted approximately 50% of this property on the 2002 roll under Section 396 (1) (i) of the Charter. This grant is for the period October 29, 2001 to December 31, 2001 and is pro-rated for the portion that is exempt.

$ 2387.58

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