Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of Finance

SUBJECT:

Grants-in-Lieu of City’s General Purposes Taxes

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Under Sections 396(1)(c) and 397(1) of the Vancouver Charter, tax exemptions can be given to qualifying properties. However, the exemption cannot be granted until the property is in actual occupation and use for the charitable purposes. Up until that point in time, the property is subject to full taxes, including school and regional levels. Council has a policy to provide a grant equal to General Purposes taxes covering the period from first building inspection, or the period from proof of occupancy, to the date the property becomes exempt.

Approval of grants requires eight affirmative votes.

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DISCUSSION

Requests for grants-in-lieu of property taxes are received by the Property Tax Office (and B.C. Assessments) from the various organizations throughout the year. These requests are held until the Area Assessor for Vancouver has verified they will be shown as exempt on the following year’s Assessment Roll in accordance with Sections 396(1)(c) and 397(1) of the Vancouver Charter. The following organizations have requested a grant:

Source of funds to be the 1999 Other Grants Budget.

Appendix A sets out details of the request.

It is noted that the City has this process to provide grants equal to General Purposes taxes. None of the other taxing jurisdictions provide similar grants in lieu for their tax levies to these charitable groups, and so the groups are required to pay that portion of their taxes. Recommendation B of this report suggests that the City approach the Provincial Government, with respect to their school taxes, and urge them to provide similar grants in lieu of school taxes.

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APPENDIX A

1. The Vancouver Japanese Language School and Japanese Hall

475 - 487 Alexander Street
Lot B, Block 38, District Lot 196, Plan LMP 17676

This group was founded as a non-profit society in 1906, and since 1928 has been in operation at 475 Alexander. In 1995, they acquired the adjacent property and amalgamated the lots. At the time of the grant request in November 1995, the school was in operation in an existing heritage building on the property. BC Assessments granted exemption for the 1997 roll under Section 396(1)(c)(I) of the Vancouver Charter. The principal activity taking place on the property is the teaching of the Japanese language and several aspects of that country’s culture. It is also a gathering place for various community groups. This grant is for the period from January 1st 1996 to December 31st, 1996.

$14,041.30


2. Canadian Hostelling Association/ Association Canadienne

1100 - 1114 Burnaby Street
Lot A, Block 26, DL 185, Plan 92

This charitable group purchased this property on January 24, 1996. A grant request was received on March 11, 1996, and an Occupancy Permit to commence operation as a hostel was issued by the City on June 24, 1996. BC Assessments granted exemption for the 1997 roll under Section 396(1)(c)(I) of the Vancouver Charter. This grant is for the period from June 24, 1996 to December 31, 1996.

$3,554.97

Appendix A - Page 2

3. Maranatha Tabernacle (Ministries) Society

248 East 11th Avenue
Lots 2 to 4, Block 115, DL 301, Plan 187

The church purchased this property on January 16, 1997, and after renovating the premises, conducted worship services from April 20, 1997 until its recent sale on October 14, 1998. A partial exemption was granted by BC Assessments for the 1998 Roll under Section 396 (1)(c)(iv) of the Vancouver Charter and a grant request was received on October 21, 1998. This grant is for the period from April 20, 1997 to December 31, 1997, at a proportionate rate equal to the percentage of exempt value in 1998.

$2,551.57

4. The Khalsa Diwan Society

8000 Ross Street
Lot E, Blocks 9 to 13, District Lot 200, Plan LMP 16462

In 1995, this Society redeveloped it’s property, which until then included some residences, that were taxable and the temple which was fully exempt. These community facilities now include a library, museum, administrative offices, more residences and dormitories and BC Assessments has granted exemption on all but the residential facilities under Section 396 (1)(c)(iv) of the Vancouver Charter for the 1997 roll. The first building inspection is recorded as July 14, 1995. This grant is for the 1996 non-residential tax for the period of January 1st 1996 to December 31st, 1996.

$37,443.46

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