Smithers considers course to eliminate permissive tax exemptions, would Prince Rupert council consider similar plans?

The Town of Smithers may be providing somewhat of a blue print for Northwest communities looking to find additional revenue streams to address critical issues in their communities. 

That after the elected officials of the Bulkley Valley community recently explored the idea of eliminating their Permissive Tax Exemption program. 

The discussion from Smihers officials took place in mid July and the minutes of that session provide a look at what kind of revenue gain that community could pick up should they do away with the Exemption program. 

W. Wallace, Director of Finance, provided an overview of the Town's Permissive Tax Exemption (PTE) program, which operates in a three- year cycle. 

In accordance with the Town's Policy FIN-018 Permissive Taxation Exemption, Council has the authority, at their discretion, to exempt certain land and/or assessments from property taxation, not covered through statutory exemptions. 

In 2021, senior government provided statutory exemptions to seniors’ care homes, hospitals, private schools, and public worship bodies at an estimated local tax cost of $340,537. 

In 2021, the Town provided $247,209 to assisted living homes, non-profit organizations, and recreational organizations through its PTE program and decisions. 

W. Wallace explained that when a property is granted a permissive taxation exemption, the remainder of the taxation base is required to cover the cost of the exemption.

The Full report from July and the plans to move forward towards further consideration can be reviewed here.

It's not the first time that Smithers Council member have considered the topic, a  previous discussion from 2021 on the theme is also available from the Town of Smithers here. 

That video offers up a look at some of the elements that have made for the Smithers council considerations on the issue.

The Smithers proposal for this year generated some discussion among the public as part of their July 25th session.

Whether Prince Rupert City Council would entertain such a concept might be of some interest to the community.  

The current list of Permissive Tax Exemptions is a fairly lengthy one with an estimated dollar value of $366,881.40 in exemptions in place.

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The current application period for exemptions closed on July 15th.

If the past process is an indication, the list for the year ahead will be provided to Council likely within the next few weeks.

Prince Rupert Council members in the past have shown little appetite to take on a review of the program, noting of the impact it may have on those organizations that currently make use of it.

In recent years, the lists as provided by the City's Finance office have moved forward with approval with little to no discussion.

Considering the often stated notes from Council members  on how the City will search in all directions towards accessing funding for its growing list of infrastructure requirements; someone on City Council may want to at least float the idea of a change to the Tax Exemption policy as a discussion point for an upcoming public meeting.

You can learn more about the City of Prince Rupert's Permissive Tax Exemption policies here.

More notes on past Council Discussion themes can be reviewed here.