HomeMy WebLinkAboutFIN-08-078 - Section 357 Application - Islamic Shia Ithna-Asheri Jamaat of K-W1
KdivE.R
Financial Services
6 REPORT
Report To:
Mayor Carl Zehr and Members of Council
Date of Meeting:
May 26, 2008
Submitted By:
Dan Chapman, General Manager of Financial Services
Prepared By:
Dan Chapman
Ward(s) Involved:
Ward 4
Date of Report: May 22, 2008
Report No.: FIN -08 -078
Subject: Section #357 Application - Islamic Shia Ithna - Asheri Jamaat of
Kitchener - Waterloo
RECOMMENDATION:
THAT, pursuant to Section #357 of The Municipal Act, S.O. 2001, the application to City Council
for Cancellation, Reduction, refund or levy of taxes, for Islamic Shai Ithna - Asheri Jamaat of
Kitchener Waterloo, 6 Executive Place, be approved in the amount of a net increase in property
taxes of $2,634-59.
BACKGROUND:
In reviewing report FIN -08 -074 (May 20, 2008) related to cancellations, reductions and refunds
of taxes, the Finance and Corporate Services Committee deferred approval of the adjustment
for the Islamic Shia Ithna - Asheri Jamaat of Kitchener - Waterloo to allow staff time to review the
basis of calculation with the applicant.
REPORT:
An application under Section #357 of the Municipal Act, S.O. 2001, was made on behalf of the
Islamic Shia Ithna - Asheri Jamaat of Kitchener- Waterloo to apply for exempt status for the
period from November 28, 2006, the date of purchase of the property, to December 31, 2007.
The previous assessment on the property was C1 — Commercial Taxable — Farmland 1. This
class is commercial lands which are being farmed, since the property was being farmed by the
previous owner. The 357 application was forwarded to MPAC and a determination was made
on the appropriate assessment for the property based on the application.
Once an organization applies to become exempt based on the use of the property and the land
is still vacant — the building of the place of worship is not complete, the lowest taxation class
MPAC utilizes is residential. Once the place of worship is completed and the congregation
commences worship in the facility, MPAC will consider an application at that point in time to
determine whether the property qualifies for exempt status.
In the case of this property, the C1 classification tax rate is lower than the residential rate.
However, the property is no longer being farmed and MPAC can only assess the property as
residential.
FINANCIAL IMPLICATIONS:
The net property tax increase associated with this adjustment from the period of November 28,
2006 to December 31, 2007 is $2,634.59.
COMMUNICATIONS:
Staff has reviewed this information with the applicant.
Dan Chapman, CA MPA
General Manager of Financial Services
DC /mf