The District of Sooke will review its permissive tax exemption policy to balance support for non-profits with fairness to taxpayers.
The district grants tax exemptions to non-profits, churches, and community groups offering services that align with municipal priorities. However, with a growing population and rising property values, the cost of these exemptions has come under scrutiny.
“Some of these institutions have benefited from a tax holiday for a long time. I don’t want to diminish their value, but I believe there’s an opportunity to address fairness for those covering the costs,” said Coun. Al Beddows.
“If we could get more people to pay their taxes, it would help ease the burden on those struggling to make their mortgage payments.”
Municipalities periodically review their permissive tax exemption policies to align with community goals and financial plans. For example, the Township of Langley has detailed guidelines for granting exemptions, while the City of Victoria’s policy outlines application processes, eligibility criteria, and conditions for exemptions.
Sooke’s director of financial services Rose Lui said staff are preparing a report for council. Expected early next year, it will present options for policy amendments. These options include no exemptions, partial exemptions, or full exemptions, along with criteria for deciding the scope of these exemptions.
Scrutiny over who receives permissive tax exemptions arose last year when council initially rejected, then reversed a decision to grant an exemption to the M’akola Housing Society.
“The community has a lot of questions about whether supportive housing organizations should receive tax exemptions,” Lui said, adding that some municipalities exclude long-term housing projects from exemptions.
Beddows emphasized the need for fairness.
“Next year will put a big strain on taxpayers, with a possible borrowing referendum on infrastructure and other projects,” he said. “It’s important to ensure everyone pays their appropriate share.”
