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SOMBA K'E/YELLOWKNIFE
A city councillor is attempting to reach a compromise after council received a request from the SPCA for a property tax exemption on the animal shelter the group is building on the outskirts of Yellowknife.

Coun. Mark Heyck moved a motion Monday night recommending administration amend the city's tax administration bylaw so that it would allow for the NWT SPCA to retain "a temporary tax exemption." The association has made the case for relief in light of the costs associated with constructing a new animal shelter in the Engle Business District just off Deh Cho Boulevard.

City councillors by and large expressed support for the animal shelter, which the SPCA estimates will cost more than $800,000 to build, but not for the tax exemption. Most worried granting the exemption would open the floodgates to more tax break requests from other volunteer and non-profit groups.

Heyck's motion would require the exemption be lifted once the shelter becomes operational and begins collecting revenue, which is not expected until at least 2013.

Heyck himself admitted he remained against a permanent tax exemption but saw an opportunity to be flexible.

"This amendment removes one further expense of things (the SPCA would) have to fundraise until such time as the project is complete," said Heyck.

SPCA board member Robin Weber argued the shelter should be considered an "essential service" to the municipality and that as such, should fit the criteria to receive a full exemption under the city's bylaw. The board pointed out in an earlier discussion last week that other groups - the Yk Shooting Club and Yk Golf Club among them - get a tax exemption for property they own.

City administration offered the SPCA a bit of a break last week, changing the property's tax classification to agriculture from commercial industrial. The reclassification would put the SPCA's annual tax bill at $7,749 from $11,927 once construction is complete.

"We had our assessor look at this and he changed it to agricultural based on the fact that animals are housed and there is husbandry going on and, in some instances, animals being raised there because (the SPCA does) take in puppies," said Carl Bird, director of corporate services at Monday's municipal services committee meeting.

He said the SPCA will not pay the full mill rate until the shelter is actually constructed.

"In the meantime, the NWT SPCA will only be paying taxes on the land," he said, adding that it will amount to $2,972 per year.

Heyck's motion for temporary tax relief will be discussed by council at its next committee meeting on Nov. 21.

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