Non-profit property tax mitigation
Non-profit organizations that provide public facilities are generally exempt from property tax through the Municipal Government Act (MGA) and the Community Organization Property Tax Exemption Regulation (AR281/98) (COPTER).
These property tax exemptions require that the property is actually used for an exempt purpose. Taking direction from a 2008 Court of King's Bench decision (Edmonton (City) v. North Pointe Community Church, 2008 ABQB 110), exemptions based on use do not generally apply to properties and/or facilities that are under construction or renovation and not actually in use for an exempt purpose.
The Non-Profit Tax Mitigation Policy ensures tax cancellations for properties that are under construction or renovation in Calgary are conducted in an equitable and consistent manner through an open and transparent process. Under the policy, an application for cancellation is required.
Who is impacted?
The NPTM program applies to Eligible properties that qualify under the following sections of the MGA and COPTER:
- Sections 362(1)(d), (e), (g1), (h), (j), and (k)-(m); 362(1)(n)(ii)-(v); and 362(1)(o) of the MGA, and
- Sections 15(a)-(c) and 15(e)-(k) of the COPTER
How does the policy/program work?
Applicants are required to apply for consideration under the policy. The time period subject to cancellation is from the issuance of a building permit (provided an application has been submitted within the appropriate timelines) until the property is exempt, up to a maximum of four years.
Each applicant must continue to pay the regular municipal and provincial property taxes until the property is completed, occupied, used for an exempt purpose, and determined to be exempt by The City. Upon exemption, City Administration will place the request for a cancellation of the applicable municipal taxes on an annual report which goes to City Council for final approval. Upon Council’s approval, the municipal tax paid during the NPTM cancellation period will be credited back to that property/facility’s tax account.
Application deadline for full cancellation
For a building permit issued Jan. 1, 2015 or after, the application deadline is the calendar year in which the building permit was issued. If an application is received after the calendar year in which the building permit was issued, the cancellation period will start in the calendar year the application was submitted.
To apply, complete the application form and submit it to:
Email: assessment.exemptions@calgary.ca
Mail:
The City of Calgary, Assessment & Tax Business Unit IMC #8002
Exemptions
PO Box 2100, Station M, Calgary Alberta, T2P 2M5
Next steps
Once an application is received, it will be processed and qualifying applications will be submitted for approval by City Council once annually.
|