Prince George city council will be looking at solutions to recoup lost revenues related to the creation of childcare spaces on school properties.
The province is encouraging the creation of childcare spaces on school properties which has several practical advantages for families and staff.
However, city staff says an unintended consequence of encouraging this co-location is that childcare operations housed on school properties become exempt from the mechanisms through which businesses are normally taxed by local government.
The city’s Intergovernmental Affairs Committee has come up with a draft resolution which they want to submit to the annual general meeting of the North Central Local Government Association (NCLGA).
The resolution calls on NCGLA to advocate to the Minister of Education and Child Care that a mechanism by which local governments can recuperate the equivalent of property tax for childcare centers operating on school property be established.
“The City of Prince Geore is supportive of the province’s efforts to increase the number of childcare spaces across the province. However, concurrently, we ask that there be thought given to a mechanism by which local governments can recoup the equivalent of property tax for childcare centers operating on school property,” reads the draft resolution.
“While these facilities are much needed, we note that the unique placement of these operations, specifically encouraged by provincial policy, moves a greater number of these businesses, outside of the municipal jurisdiction to levy taxes. This is challenging financially and as all local government strive to ensure equitable taxation to service providers across the community.”
Recent changes to the School Act allow for school boards to directly operate childcare. In some cases, the school may hold the license but in others, a community provider may be the licensee.
The provincial government is encouraging school districts to help meet the demand for more before-and after-school care, though they are not required to do so under the School Act. Where possible, school districts are also encouraged to partner with a third party to create and operate licensed childcare spaces.
A report from the Intergovernmental Affairs Committee to city council says that “while being sensitive to the need for additional childcare spaces, local governments across BC are responsible for an array of services and have heavy infrastructure burdens, it is fiscally responsible to ensure that all appropriate fees and taxes are collected by the local government to ensure high quality service delivery now and in the future.”
City council will have to approve this draft resolution before it can be submitted to the NCGLA for further consideration.
