Nathan VanderKlippe
Northern News Services

Yellowknife (May 10/02) - The Salvation Army is contemplating its options after city councillors recommended denying it tax-exempt status for one of its properties.

The church and social organization requested a tax exemption for a house directly adjacent to the Salvation Army building. The house is used for a withdrawal management program, which counsels six people at a time on stepping back from alcohol and drugs.

The city rejected the application, saying that the program is a social service which is the responsibility of the territorial government.

"The city has consistently refused property tax exemption to properties that do not deliver municipal type services," wrote administration in a memo to the corporate services committee.

Councillors agreed with that logic.

Capt. Al Hoeft, of the Salvation Army, disagreed.

"It's through the Yellowknife Health and Social Services Board. It's not territorial at all, it is municipal," he said.

The program has run for the last three years, but the Salvation Army only purchased the building this January. Soon after, the Army applied for the exemption, which it already has on its main building.

Upon hearing that the city intends to deny the application -- which must be approved by full council this Monday -- Hoeft said, "we'll have to back up and see how it will impact us," he said.

"Quite often it means that funds that could have been used some place else will be used to pay taxes."

About $2,100 in property and school taxes are levied on the property every year.

The city has granted tax-exempt status to about two dozen properties, amounting to $187,825 in missed revenue.

Hoeft added that "we'll probably try to have some communication with them over the next little while. We'll wait and see."