Permissive Tax Exemption Cap will see Change in Property Tax Bills
In prior years, where permitted by law, Town Council has annually provided a Permissive Tax Exemption (PTE) to eligible applicants for 100 per cent of total assessed values. In 2012, this represented a forfeiture of over $60,000 in tax revenue. As part of a strategy to limit the financial impact of PTEs yet provide a level of benefit to all applicants, Council has reduced the exemption to 87.8 per cent of the total assessment values of all applicants. This means that all eligible applicants will now pay a small percentage (12.2 per cent) of their total assessed value.
There are two types of property tax exemptions, statutory and permissive. A statutory tax exemption is authorized by the province and is mandatory. These exemptions include properties held by the province, municipalities, regional districts, libraries, hospitals, schools, cemeteries and places of worship. For some properties, 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 Town Council. The authority to grant PTEs represents a choice and opportunity for the Town to support eligible organizations meeting the requirements under the Charter. PTEs are discretionary and can be granted to a much wider range of properties than statutory exemptions including property owned or occupied by a not-for-profit corporation or a property owned by a local authority.
While past recipients of PTEs have enjoyed a 100 per cent exemption, over time, this has meant consequential incremental tax increases for other organizations that cannot receive an exemption. Moreover, the number of organizations that have been applying for PTEs has increased every year, exacerbating this issue.
“The annual financial impact to individual PTE applicants will really be quite limited” said Mayor Christina Benty. “Under this strategy, Council will still be able to provide a measureable benefit for all eligible applicants and support to our not-for-profit sector, yet limit the overall impact value of PTEs and other consequential tax increases.”
A complete list of 2014 PTEs is a matter of public record and can be obtained from the town office. If there are more questions regarding the PTE’s , please email inquiries@golden.ca
