It wasn't an easy decision for the city as council debated the removal of a permissive tax exemption that has previously exempted local non-profits, places of public worship, and the airport from paying property taxes.
However as taxes have increased, the mayor pointed out that the exemption amount has nearly doubled since he's been on council
"It is just going to keep growing and growing and growing based on the criteria.So I think the fair thing to do here is, is to spread this out amongst everybody, as opposed to trying to pick or maybe this organization deserves it more than that organization and we pull this group out of this tax exempt and keep this group in the tag exempt. So I think leveling it across is the fair way to go. It's, you know, it's I just don't think it's continually be fair to, for the taxpayers to offset all of this. So I think, I think this is the direction."
-Sean Bujtas - Mayor of Terrace
The decision was to reduce the permissive exemptions by 35% of 2024 values over a 4 year period, being 2025 through 2028
A funding cap was established at a collective amount of 1 percent of the city's annual 2024 property tax revenues.
"So once the amended policy is adopted, the value of permissive tax exemptions in 2025 will be capped at just over $646,000. All eligible organizations will receive a combined tax exemption of this $640,000, and will be required to pay a combined total of just over 60,000 and municipal taxes. This phase down will continue over a four year period, and by 2028, eligible organizations will receive an approximate exemption of 65% of their municipal taxes and will be required to pay the remaining 35%. The intention would be that in the years 29 and beyond, this cap would remain steady, only increasing by the amount of the annual property tax."
-Lori Greenlaw - Director of Finance
Along with the 1 per cent cap, non-profit groups will be subject to the same annual property tax increases as everyone else.
