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8. TAX EXEMPTION FOR LAND USED AND OCCUPIED BY VETERANS EXEMPTION
D'IMPÔTS FONCIERS POUR LES ORGANISMES D'ANCIENS COMBATTANTS QUI
UTILISENT OU OCCUPENT UN TERRAIN POUR L'AMÉNAGEMENT
D'UNE RÉSIDENCE COMMÉMORATIVE, D'UN PAVILLON |
Committee RecommendationS
That Council:
1. Enact a by-law in the
form attached as Document 2 to exempt certain veterans organizations from all
municipal property taxes including the school portion of such taxes for a
period of ten years commencing in the 2008 taxation year, and
2. Subject to the
approval of paragraph (a), the existing by-laws that exempt such veterans
organizations from only the municipal portion of the taxes be repealed as of
January 1, 2008.
RecommandationS du comité
Que le Conseil :
1. adopte un règlement municipal sous
forme du document 2 ci-jointe pour exempter certains organismes d’anciens
combattants de tous les impôts fonciers municipaux, y compris la portion liée
au domaine scolaire, pour une durée de dix ans à compter de l’année
d’imposition 2008, et
2. sous réserve de l’approbation du
paragraphe (a), abroge en date du 1 janvier 2007 les règlements
municipaux en vigueur actuellement qui exemptent ces organismes d’anciens
combattants des impôts fonciers municipaux – la portion liée aux
affaires municipales seulement.
Documentation
1. City Treasurer's report dated 20 November
2007 (ACS2007-CMR-FIN-0032).
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
20 November 2007 / le 20 novembre 2007
Submitted by/Soumis par : Marian
Simulik, City Treasurer / trésorière municipale
Contact
Person/Personne ressource : Ken Hughes,
Manager of Revenue / Gestionnaire, Recettes
(613)
580-2424,Ext./poste 13485, Ken.Hughes@ottawa.ca
REPORT RECOMMENDATIONS
That the Corporate Services and Economic Development Committee recommend Council:
1. Enact a by-law in the form attached as Document 2 to exempt certain veterans organizations from all municipal property taxes including the school portion of such taxes for a period of ten years commencing in the 2008 taxation year, and
2. Subject to the approval of paragraph (a), the existing by-laws that exempt such veterans organizations from only the municipal portion of the taxes be repealed as of January 1, 2008.
RECOMMANDATIONS DU
RAPPORT
Que le
Comité des services organisationnels et du développement économique recommande
au Conseil :
1. d’adopter un règlement municipal sous forme
du document 2 ci-jointe pour exempter certains organismes d’anciens combattants
de tous les impôts fonciers municipaux, y compris la portion liée au domaine
scolaire, pour une durée de dix ans à compter de l’année d’imposition 2008, et
2. sous réserve de l’approbation du paragraphe
(a), d’abroger en date du 1 janvier 2007 les règlements municipaux en
vigueur actuellement qui exemptent ces organismes d’anciens combattants des
impôts fonciers municipaux – la portion liée aux affaires municipales
seulement.
BACKGROUND
Between the summer, 2001 and spring 2007, in accordance with the Municipal Act, 2001, S.O. c.25 (the “Municipal Act”) as amended, and the Assessment Act R.S.O. 1990, c. A.31 (the “Assessment Act”) Council passed various By‑laws providing for the exemption from municipal taxation for 10 years for certain Royal Canadian Legions (“RCL”) and the Polish Combatant’s Association in Canada Inc (“PCA”) in the City of Ottawa. At that time, the legislation limited the municipalities’ ability to exempt from taxation only the municipal taxes and specifically restricted the municipalities from exempting education taxes and local improvement rates.
Recently, the applicable sections in the Municipal Act have been repealed and transferred to the Assessment Act. Effective May 17, 2007, the Assessment Act no longer restricts municipalities from exempting land used by veterans from education taxes. Accordingly, a municipality may now pass a by‑law exempting land used by veterans for a memorial home, clubhouse or athletic grounds from both municipal and education taxes.
DISCUSSION
In 2001, City Council exempted properties of the RCL from the municipal portion of taxes for a ten-year period and in 2003 a similar ten-year exemption was provided for the PCA. A third by-law was enacted in 2007 to recognize a new branch of the RCL in Barrhaven.
In accordance with the aforementioned by-laws, there are currently sixteen (16) properties that qualify for a municipal tax exemption. Document 1 lists these eligible properties. The RCL and PCA serve an important role in Ottawa in providing support and help to Veterans and Seniors in our communities. When the original By-laws were passed, the RCL, the PCA, and Council had expressed frustration that the legislation did not permit the exemption from the education portion as well.
As indicated above, the Municipal Act no longer provides for the veteran municipal property tax exemption, rather, the exemption is now provided within the Assessment Act.
The amendment of Section 6.1(2) in the Assessment Act, which came into effect May 17, 2007, no longer restricts a municipality to extend the exemption to the education portion of the property taxes. Section 6.1(3) restricts the exemption period to ten years.
Staff is recommending that City Council take advantage of the current legislative amendment in the Assessment Act and provide a municipal and education tax exemption to the eligible RCL branches and the PCA listed in Document 1 for a ten year period commencing in the 2008 taxation year.
The second recommendation permits the provision of this tax exemption to certain properties named in Document 1 to be consolidated into one By-law rather then in three separate By‑laws as is the case currently. By consolidating the by-laws all properties will be eligible to the same tax exemption for the same time period.
CONSULTATION
The Revenue Division has consulted with Legal Services, Municipal Property Assessment Corporation, Association of Municipal Tax Collectors of Ontario, Association of Municipalities of Ontario, Municipal Finance Officers of Ontario, Ministry of Finance, and the RCL and the PCA in preparation of this report.
FINANCIAL IMPLICATIONS
There are no additional financial impacts for the city’ share as this has been covered by various by-laws since 2001. In 2008 the education portion will be deducted from the education tax remittances.
STRATEGIC DIRECTIONS
Not applicable
SUPPORTING DOCUMENTATION
Document 1: List of premises qualifying for the exemption under the Assessment Act
Document 2: Draft By-law exempting qualifying land used by veterans from educational taxes
DISPOSITION
The City
Solicitor will place the draft by-law on the Agenda of Council for enactment by
City Council. The Revenue Division will
make the necessary adjustments to the tax account and will send the by-law to
Municipal Property Assessment Corporation.
The Revenue Division will advise the RCL Branches and the PCA impacted.
|
NO |
Address
|
Old Municipality |
Type |
|
1 |
MITCH OWENS RD |
Gloucester |
Royal Canadian Legion - Branch 627 |
|
2 |
70 HINES RD. |
Kanata |
Royal Canadian Legion - Branch 638 |
|
3 |
4026 RICHMOND RD. |
Nepean |
Royal Canadian Legion - Branch 593 |
|
4 |
99 GRENFIELD |
Ottawa |
Royal Canadian Legion - Branch 595 |
|
5 |
330 KENT ST. |
Ottawa |
Royal Canadian Legion - Branch 351 |
|
6 |
389 RICHMOND RD. |
Ottawa |
Royal Canadian Legion - Branch 480 |
|
7 |
294 CYR
AVE |
Vanier |
Royal Canadian Legion - Branch 462 |
|
8 |
800 TAYLOR CREEK |
Cumberland |
Royal Canadian Legion - Branch 632 |
|
9 |
6430 OTTAWA ST. |
Goulborn |
Royal Canadian Legion - Branch 625 |
|
10 |
1481 MAIN ST. |
Goulborn |
Royal Canadian Legion - Branch 618 |
|
11 |
0 ELIZABETH ST |
Osgoode |
Royal Canadian Legion - Branch 589
|
|
12 |
3284 SUNSTRUM ST |
Osgoode |
Royal Canadian Legion - Branch 589 |
|
13 |
5550 ANN ST. |
Rideau |
Royal Canadian Legion - Branch 314 |
|
14 |
377 ALLBIRCH RD. |
West Carleton |
Royal Canadian Legion - Branch 616 |
|
15 |
3023 CEDARVIEW RD |
Nepean |
Royal Canadian Legion - Branch 641 |
|
16 |
379 WAVERLEY ST |
Ottawa |
Polish Combatants’ Association of
Canada Inc. |
A by-law of the City of Ottawa to provide an exemption from taxation for veterans’ organizations within the City of Ottawa.
WHEREAS
Section 6.1 Assessment Act, R.S.O. 1990, Chapter A.31, as amended,
provides authority for a council of a municipality to exempt from taxation, for
a period not exceeding ten years, any premises actually used and occupied as a
memorial home, clubhouse or athletic grounds by persons who served in the armed
forces of His or Her Majesty or His or Her Majesty’s allies in any war;
AND WHEREAS the Council of the City of Ottawa considers it expedient to exempt veterans’ organizations from taxes except for local improvement rates;
THEREFORE the Council of the City of Ottawa enacts as follows:
1. The
premises as defined in Schedule “A”, attached hereto, are exempt from taxes
except for local improvement rates as long as the premises are actually used
and occupied by the veterans’ organization so named.
2. The
exemption granted under Section 1 shall remain in effect for a period of ten
(10) years commencing in the 2008 taxation year provided that the premises are
actually used and occupied by the veterans’ organization so named.
3. An
exemption under this by-law does not affect the obligation to pay fees or
charges that have priority lien status.
4. If
any section or portion of the by-law or of Schedule “A” is found by a court of
competent jurisdiction to be invalid it is the intent of the Council of the
City of Ottawa that all remaining sections and portions of this by-law and of
Schedule “A” continue in force and effect.
5. Schedule
“A” attached hereto shall be and forms a part of this by-law.
6. The
following by-laws are hereby repealed,
(a) By-law No. 2001-276 entitled “A by-law of the City of Ottawa to provide an exemption from taxation for branches of the Royal Canadian Legion within the City of Ottawa”, as amended;
(b) By-law No. 2003-145 entitled “A by-law of the City of Ottawa to provide an exemption from taxation for the Polish Combatants’ Association in Canada Inc.”; and
(c)
By-law
No. 2007-221 entitled “A by-law of the City of Ottawa to provide for an
exemption from taxation for Branch 641 of the Royal Canadian Legion located at
3023 Cedarview Road in the City of Ottawa”.
7. This
by-law shall come into force and take effect on January 1, 2008.
ENACTED
AND PASSED this day of , 2007.
CITY
CLERK MAYOR
Veterans’ Organizations
|
NO |
Address |
Old
Municipality |
Name
of Veterans’ Organization |
|
1 |
MITCH
OWENS RD |
Gloucester |
Royal
Canadian Legion - Branch 627 |
|
2 |
70 HINES RD. |
Kanata |
Royal
Canadian Legion - Branch 638 |
|
3 |
4026
RICHMOND RD. |
Nepean |
Royal
Canadian Legion- Branch 593 |
|
4 |
99
GRENFIELD |
Ottawa |
Royal
Canadian Legion- Branch 595 |
|
5 |
330
KENT ST. |
Ottawa |
Royal
Canadian Legion - Branch 351 |
|
6 |
389
RICHMOND RD. |
Ottawa |
Royal
Canadian Legion - Branch 480 |
|
7 |
294 CYR AVE |
Vanier |
Royal
Canadian Legion - Branch 462 |
|
8 |
800
TAYLOR CREEK |
Cumberland |
Royal
Canadian Legion - Branch 632 |
|
9 |
6430
OTTAWA ST. |
Goulborn |
Royal
Canadian Legion - Branch 625 |
|
10 |
1481
MAIN ST. |
Goulborn |
Royal
Canadian Legion - Branch 618 |
|
11 |
0
ELIZABETH ST |
Osgoode |
Royal
Canadian Legion- Branch 589 |
|
12 |
3284
SUNSTRUM ST |
Osgoode |
Royal
Canadian Legion - Branch 589 |
|
13 |
5550
ANN ST. |
Rideau |
Royal
Canadian Legion – Branch 314 |
|
14 |
377
ALLBIRCH RD. |
West
Carleton |
Royal
Canadian Legion- Branch 616 |
|
15 |
3023
CEDARVIEW RD |
Nepean |
Royal
Canadian Legion - Branch 641 |
|
16 |
379
WAVERLEY ST |
Ottawa |
Polish
Combatants’ Association of Canada Inc. |