Non Profit Recommendation by hhg78080

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									                                                                     That Administration prepare a policy
Tax Exemption                                                        for the May 6, 2009, Executive
                                                                     Committee meeting, dealing with the
Regulations - Seniors                                                question of tax exemptions for non-
and Non-Profit                                                       profit housing.

Housing                                                         Report
(Tax Exemption for Non-Profit                                   Administration has developed the
Housing)                                                        following strategy to deal with the issue
                                                                of non-profit seniors housing and non-
                                                                profit housing:
Recommendation:                                                 1. A resolution is being drafted for City
That the April 15, 2009, Planning and                                Council’s consideration to be
Development Department report                                        presented to Alberta Urban
2009PAT008 be received for information.                              Municipalities Association (AUMA)
                                                                     urging the Province of Alberta to
Report Summary                                                       amend existing legislation.
This report provides information on                             2. Administration will prepare a letter
property tax relief under Municipal                                  from the Mayor, requesting that the
Government Act, R.S.A. 2000, c. M-26                                 province amend existing legislation
(MGA) sections 347 and 364 and the                                   to clarify which non-profit affordable
strategy that the City of Edmonton                                   and non-profit senior housing
may undertake to deal with the                                       owner/operator agencies are to be
Community Organization Property                                      exempt from paying municipal and
Tax Exemption Regulation, A.R.                                       education property taxes. In
281/98 (COPTER) for non-profit                                       addition, for those properties held by
seniors housing and non-profit                                       non-profit organizations that will not
affordable housing.                                                  be exempt under legislation, that the
                                                                     province exempt from education
Previous Council/Committee Action                                    taxes those non-profit affordable and
At the March 25, 2009, City Council                                  non-profit senior housing
meeting, the following motion was                                    owner/operator agencies that the
passed:                                                              municipality exempts from municipal
                                                                     property taxes.
    That Administration provide a report                        3. The City Assessors’ Group of
    to Executive Committee on the                                    Alberta is drafting a letter to Alberta
    strategy to deal with the Community                              Municipal Affairs requesting changes
    Organization Property Tax                                        to COPTER regarding seniors
    Exemption regulations on seniors                                 housing and non-profit housing.
    housing and non-profit housing.                             4. City Council may direct
                                                                     Administration to develop a City
At the November 19, 2008, City Council                               Policy to provide tax relief through
meeting, the following motion was                                    cancellation, exemption or grants to
passed:                                                              non-profit seniors housing and non-
                                                                     profit housing organizations, similar
                                                                     to the approach taken in the final


ROUTING – Executive Committee | DELEGATION - R. Risling
WRITTEN BY – J. Bergland | April 15, 2009 – Planning and Development 2009PAT008
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Tax Exemption Regulations – Seniors and Non-Profit Housing
     report from the Advisory Committee       implementation by external consultants
     on Tax Status of Non-Profit              and internal staff.
     Organizations from March 9, 1998
     (Attachment 1 to the April 15, 2009,     Budget/Financial Implications
     Planning and Development report          Non-profit Affordable Housing
     2009PAT008).                              There are approximately 1,200 non-
      Preliminary research has shown           profit housing tax roll accounts in the
         there are approximately 1,200          City of Edmonton that are currently
         tax roll accounts representing         taxable. This is an approximation as
         approximately 100 agencies.            there is no definitive way to search
      Administration could proceed             for these accounts using the data
         with a three-stage process             that is on the assessment and tax
         including research, public             records.
         consultation, and design and          The municipal portion of the tax levy
         implementation in order to             for these tax roll accounts is
         develop a City Policy.                 approximately $4.8 million.
      Further research, with the              The provincial school levy portion
         assistance of a research project       would continue to be the
         manager to collect the empirical       responsibility of the non-profit
         data, will be required by              housing organizations.
         Administration in order to            Local improvement charges are not
         determine the full scope of the        exempt under legislation. The non-
         non-profit seniors and non-profit      profit housing organization would
         housing agencies.                      continue to be responsible for local
      Once the empirical data has              improvement charges.
         been collected, a public             Non-profit Seniors Housing
         consultation process would need       There are currently 95 seniors’
         to be undertaken.                      housing tax roll accounts in the City
      It is estimated that it could take a     of Edmonton that receive a grant
         year to complete the project.          under Ministerial Order from the
      The public consultation process          Province on an annual basis.
         may include preparing concepts        Since the implementation of the
         for testing or working                 Municipal Government Act, R.S.A.
         collaboratively with interest          2000, c. M-26 (MGA) in 1995, the
         groups for building solutions and      Province has annually provided this
         implementation.                        grant. The current grant will expire
Focus Area                                      on March 31, 2010.
                                               The 2008 municipal portion of the tax
Transform Edmonton’s Urban Form,                levy was $689,000 for these tax roll
Improve Edmonton’s Liability                    accounts.
Public Consultation                            The provincial school levy portion
                                                that was exempted by the Ministerial
If directed by City Council, under Policy       Order was approximately $326,000.
Number C513 to have public
                                               Local improvement charges are not
involvement, Administration would
                                                exempt under legislation. The non-
require facilitation of the design and




Page 2 of 3
Tax Exemption Regulations – Seniors and Non-Profit Housing
    profit seniors’ housing organization     Attachments
    would continue to be responsible for     1. Final Report from the Advisory
    local improvement charges.                  Committee on Tax Status of Non-
Policy Development                              Profit Organizations from March 9,
 In order to adequately develop a City         1998
    Policy, Administration would require
    additional resources. This is            Others Reviewing this Report
    estimated to be in the range of           C. Warnock, Chief Financial Officer
    $200,000 of one-time unbudgeted             and Treasurer
    expenditures.                             D. H. Edey, General Manager,
 Research costs for both internal and          Corporate Services Department
    external resources are estimated to       J. Tustian, Deputy City Manager
    be $75,000.
 The estimated cost for a project
    manager for the consultative process
    could be up to $50,000.
 Building and implementing policy are
    estimated to be $75,000.
Legal Implications
Under the Municipal Government Act,
R.S.A. 2000, c. M-26 (MGA), City
Council may choose to do either of the
following:
 Under section 347 of the MGA, City
    Council has the authority to cancel,
    reduce, refund or defer all or part of
    a tax payable for a specified property
    on an annual basis if it considers it
    equitable to do so; or
 City Council has the authority under
    section 364 to pass a bylaw to
    exempt from taxation specified
    properties held by non-profit
    organizations to any extent that
    Council considers appropriate.
 Any tax relief provided by Council
    under section 347 of the MGA or
    exemption by bylaw under section
    364 of the MGA would be for the
    municipal tax portion only.




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