In addition to these general limitations, sections 344.1 and 845.3 also provide a number of limitations and procedural requirements in relation to assistance granted by way of property tax exemptions:
• The exemption must be made by bylaw, and the authority relates only to exemptions from municipal or regional district taxation, as applicable (i.e., the Municipal Act does not provide authority for local governments to exempt property under a partnering agreement from school or other provincial property taxes).
• The bylaw may provide for an exemption for all or part of the land, improvements, or both, owned or held by a party to a partnering agreement with the local government, during all or part of the term of the agreement.
• A property tax exemption under a partnering agreement is only available, however, for the part of the land or improvements used for a public purpose (e.g., not a private concession, restaurant, licensed facility, etc. that is located in the public facility).
• If the term of the exemption authorized in the bylaw is greater than five years (including renewals), then the Council or Board must provide a counter petition opportunity in relation to the bylaw.
• In order to provide a tax exemption under a partnering agreement, Council must adopt the exemption bylaw by October 31 of the year prior to the calendar year during which the exemption takes effect (that is, if the bylaw is adopted after October 31 in a calendar year, the exemption takes effect the year following the next calendar year).
• A tax exemption under a partnering agreement ceases to apply to property the use or ownership of which no longer conforms to the conditions necessary to qualify for exemption.
Unlike other Municipal Act property tax exemptions, a municipal or regional district exemption does not automatically provide an exemption for the property from school or other provincial property taxes. An exemption for some or all of the property exempted locally may be available for school and other provincial property taxes, but that exemption is only applicable if the property has been exempted by a Regulation or Order under section 131 of the School Act.
The Ministry of Finance and Corporate Relations is currently developing a regulation under that provision, but will consider providing an exemption for individual properties through an Order, prior to the passing of the Regulation.
For information about how to apply for a provincial property tax exemption, please contact the Ministry of Finance and Corporate Relations, Tax Policy Branch, by phone at (250) 387-9011, or by fax at (250) 387-5071.