Taking its lead from the Town of Gibsons, the District of Sechelt has reviewed its permissive property tax exemption policy.
This means when it comes to church properties, starting in 2026, a church will be eligible for a 75 per cent tax exemption, down from 100 per cent. But, if a church can demonstrate it offers extended community outreach rather than regular church services and programs, it could be eligible for the full 100 per cent tax exemption.
At a March 19 regular meeting of Sechelt council, recommendations from the Permissive Property Tax Exemption Committee were approved as part of the Feb. 26 committee of the whole agenda package. There was no discussion on the matter at that time.
Last year, for 2025, Sechelt council approved a total of $265,909 in municipal permissive tax exemptions to 10 places of worship, 26 community service properties, nine recreational facilities and four municipal locations.
Under the past policy, exemptions could be granted for up to 10 years, but in 2024 the District of Sechelt only provided one-year extensions to allow council to review its process. The committee, formed last July, was asked to keep in mind financial impact, fairness and equity, changing needs, accountability, transparency, and to update the permissive property tax exemption application.
At the Feb. 26 meeting, the committee recommended new provisions be added to the policy, which would mean no exemption or reduction to utility fees and charges for those properties granted permissive property tax exemption. To that end water, sewer, garbage and parcel taxes will be payable on all properties.
As well, council may consider the amount of permissive property tax exemption an organization has already received when evaluating additional funding requests from the organization.
The tax exemption application would require that each church provide a comprehensive list of extended outreach services they offer to the community and a staff evaluation would then distinguish which places of worship are eligible for the 75 per cent tax exemption, versus extended community outreach services at 100 per cent exemption.
Another change for faith-based organizations is that the area of a church’s property considered for permissive property tax exemption be limited to five times the size of the building footprint.
The policy will also be adjusted to ensure the total of permissive tax exemptions approved in a current year for the subsequent year, will not exceed 4.7 per cent of the current year’s total budgeted property tax requisition.
Council also reviewed the way affordable housing is granted a permissive property tax exemption. Affordable and non-market housing projects, which are owned and or operated by an eligible non-profit organization, may be granted a permissive tax exemption.
Meanwhile, market housing projects owned and or operated by an eligible non-profit organization, will not qualify for the exemption. Those non-profits operating market housing will go from 100 to 85 per cent exemption in 2026, and will continue to lose a percentage of their exemption each year until 2032, when they will no longer qualify for any.
In a report to the committee of the whole, Feb. 26, David Douglas, director of financial services, wrote, “The 2024 permissive tax exemptions in the Town of Gibsons reflects their commitment to supporting community organizations while also ensuring tax equity and encouraging contributions to community priorities. The changes implemented by Town of Gibsons Council highlights a strategic approach to balancing financial support with accountability and community impact.”
