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HomeMy WebLinkAboutFIN-09-158 - Property Taxation Exemption for Legions and Veterans' Service ClubsREPORT REPORT TO: Councillor B. Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee DATE OF MEETING: November 16, 2009 SUBMITTED BY: Dan Chapman, General Manager of Financial Services & City Treasurer PREPARED BY: Joyce Evans, Director of Revenue WARD(S) INVOLVED: All DATE OF REPORT: November 9, 2009 REPORT NO.: FIN-09-158 SUBJECT: PROPERTY TAXATION EXEMPTION FOR LEGIONS AND VETERANS' SERVICE CLUBS RECOMMENDATION: That the City of Kitchener continues to exempt for City Taxation, Properties owned or leased by Legions and Veterans’ Service Clubs for a ten-year period ending December 31, 2019. BACKGROUND: For a number of years the City of Kitchener has, as permitted in the Municipal Act, Section 325 (repealed, 2006) and in the Assessment Act Section 6.1, passed a by-law exempting from taxation “land that is used and occupied as a memorial home, clubhouse or athletic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 an ally of His or Her Majesty in any war”. In 1999, Council granted the Legions and Veterans’ Service Clubs a five year exemption. In 2003 Council granted the Legions and Veterans’ Service Clubs a further five year exemption commencing January 1, 2004 until December 31, 2009. Under the previous legislation Municipal Action, Section 325(2), exemptions could be granted for up to a ten year period. The current by-law expires at the end of this year, and therefore we are now requesting Council to pass another by-law exempting the land for a further 10 years. This by-law affects only the City portion of the taxes. The Regional Municipality of Waterloo will also be required to pass a similar by-law prior to the end of this year. REPORT: Upon receiving the current requests for property tax exemptions, the Area Treasurers decided to recommend a ten year extension of the exemption for Legions and Veterans’ Clubs. All of the area municipalities and the Regional Municipality of Waterloo are recommending that í ó ï resolutions or by-laws be passed granting exemptions for the next ten years. This continues to use a common exemption period for all area municipalities. FINANCIAL IMPLICATIONS: The annual cost of the exemption for the City of Kitchener has been approximately $10, 200 per year. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services & City Treasurer í ó î