SOMBA K'E/YELLOWKNIFE
The city's municipal services committee is considering amending a tax administration bylaw to better define eligibility criteria for non-profit organizations seeking municipal property-tax exemptions.

Jeff Dalley, director of corporate services, answers questions from city council about taxes on Monday at city hall. City council is considering setting a criteria for organizations seeking property-tax exemptions. - Kirsten Fenn/NNSL photo

A memorandum on the issue was brought to the committee at city hall on Monday.

"In the past," said the city's director of corporate services, Jeff Dalley, "If an organization brought forward a request for an exemption, each individual request would go to council for approval. There was no standard criteria for non-profits."

Amending the bylaw would set out that criteria, allowing organizations to review whether they fit the requirements before making a request to council for a tax exemption. The goal is also to give council some guidance in approving or declining those exemptions.

The criteria in the recommended bylaw amendment state that, in order to be eligible for a tax exemption, a property would have to be a non-profit organization that is owned and operated for municipal purposes. It suggests land, improvement and mobile units used as a residence be excluded from tax exemptions.

Coun. Rebecca Alty asked whether that would screen out organizations like Bailey House, Avens and YWCA, which provide shelter services.

"Based on that, they would not be able to be exempt," Dalley told Alty, although he said organizations that are already exempt under the tax administration bylaws would be grandfathered.

A number of organizations have been granted full or partial tax exemptions in the past, including Habitat for Humanity Northwest Territories, ReStore, the Yellowknife Community Garden Collective and Side Door Ministries.

The recommendation to council also suggested that in order to be exempted, non-profit organizations would have to primarily benefit people in Yellowknife and be used for that purpose at least 60 per cent of the time they are in use. Organizations would not be able to restrict use of their property based on race, culture, religion or membership requirements, except if membership involves filling out an application and paying a minor fee.

The committee questioned whether the recommended criteria were specific enough, with some stating they were confusing.

Alty asked that before council makes any decisions on the amendment, Dalley and administration clarify whether an organization that is renting a building would qualify for a tax exemption, or whether it would be the owner of the facility.

"I think we'd have to put some wording in the bylaw to reflect that," Alty said.

Coun. Shauna Morgan also suggested more work is needed before a decision could be made on the amendment, including how many exemptions can be afforded.

"I think we may need to work a little bit more on narrowing the criteria that has been set out by administration," Morgan said, explaining that many of the recommendations were not clear enough.

"I think this is a good first step."

Those worries were echoed by Coun. Julian Morse, who suggested there could be room for interpretation if the criteria for exemptions are not set out clearly from the beginning.

"That concerns me just in the sense that then it becomes a bit of a judgment call as to who should and shouldn't be exempted," Morse said. "If you meet the criteria and then council comes and says no, that's going to be seen as somewhat arbitrary."

Decisions could change from council to council, or based on the case the organization makes, he said.

"I agree that if council isn't setting the criteria quite clearly now, and then adhering to that criteria, I think it's going to create problems in the future," Morse said.

Deputy mayor Adrian Bell said the memo on the recommendation would be brought to council for discussion.

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