Murky provincial legislation continues to hamper a decision about whether or not the Jasper Royal Canadian Legion is legally exempt from paying municipal property taxes.
The legion initially asked council to consider a tax exemption in the fall of 2014, after the legion revealed it was struggling to stay afloat.
Despite trying to resolve the issue over the past two years, including asking for advice from the province, council declined to make a decision during a council meeting Sept. 13, stating it wanted more information and legal clarity before making a final decision.
On paper, the legion鈥檚 request appears fairly straight forward, however the criterion for a tax exemption is actually quite complicated.
According to the Municipal Government Act, Royal Canadian Legions are exempt from municipal property taxes, except for areas that have a liquor license.
Complicating matters, additional legislation about the building鈥檚 primary use and membership make room for exceptions to the law.
鈥淚鈥檓 not sure that we can grant a tax exemption,鈥� said Mayor Richard Ireland. 鈥淲e can recognize an exemption if it exists in law, we can agree that that鈥檚 an exemption, but I鈥檓 not sure we鈥檙e in a position to grant an exemption.鈥�
He said he鈥檇 like more information from the legion to determine if the legion fits the criteria for an exemption before making a decision.
鈥淚f they鈥檙e exempt they鈥檙e exempt, we don鈥檛 decide what the exemptions are.鈥�
Currently the legion pays commercial taxes on a third of its property, accounting for an annual tax bill of about $6,800. The remaining two-thirds of the building鈥攖he portion where 脡cole Desrochers used to be鈥攊s zoned institutional, exempting it from municipal taxes. The portion with the liquor license is not exempt.
In July 2015 council agreed to defer collecting just over $6,800 in municipal taxes from the legion for one year with interest, or until a decision could be made about whether or not the legion was eligible for tax relief. Council also cut the legion鈥檚 commercial garbage rate from $1,440 to $262 per year after it deemed the organization was eligible for the town鈥檚 non-profit rate.
Ken Kuzminski, president of the legion, attended a committee-of-the-whole meeting Sept. 6, to try and persuade council that the legion should be exempt from paying property taxes because of its benevolent work in the community.
During the meeting he told council that over the past year the legion has offered up its space free of charge to 20 organizations, adding up to $108,000 worth of donated space. He also told council that members of the legion have contributed 6,500 volunteer hours over the past year to various causes in the community.
鈥淚n the past year it has become quite apparent to us that the services the legion provides within the community is providing a space for other non-profit community groups,鈥� said Kuzminski.
鈥淲e鈥檝e also been seeing a lot more veterans coming through and that extends not just to military veterans, but RCMP, emergency services and firefighters as well,鈥� said Kuzminski.
To try and resolve the issue, a letter was sent to the legion asking the organization to provide more information that demonstrates it is legally exempt from paying municipal property taxes. The letter also stated council would be willing to consider any legal interpretation the legion may wish to provide.
During the discussion, several councilors expressed concern that a tax emption could be seen as giving an unfair business advantage to the legion.
鈥淭here is some sentiment from the commercial sector that are in similar businesses that feel that if we provide a subsidy to that particular part of the legion that we are giving a break to their competitor,鈥� said Coun. Rico Damota.
Mark Fercho, the town鈥檚 chief administrative officer, said the issue is more about whether or not the legion is legally exempt or not.
鈥淚f the exemption applies, it applies, and if the exemption doesn鈥檛 apply, it doesn鈥檛 apply,鈥� Fercho said.
鈥淚f they were a legion that just offered alcohol services to legion members and they operated as a legion without all the other stuff, that would be an exemption.
鈥淚t鈥檚 the legions that try and do a little bit more that fall into this gray-zone.鈥�
Paul Clarke
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