The city isn't likely to be granting any property tax relief to charitable thrift stores next year.
During Monday's finance and audit committee meeting, members voted to turn down a request from St. Michael's and All Angels Church to write off taxes owed on the thrift store portion of its Fifth Avenue property.
The store is part of the church's ministry, shared with the Knox United Church, Rev. Glenn Stone wrote in a letter to council. Most of the items are priced between $0.25 and $1 and proceeds go towards ministry work as well as the store's operation.
"Recently, we have been levied a tax related to the space that is used for the thrift shop," Stone wrote. "The amount of tax is such that when paid, our expenses would exceed any revenue that is made."
In 2013, a BC Assessment review resulted in the St. Michael's property – normally completely tax exempt because it's a place of worship – being levied $4,611.70 and $461.18 in penalties for late payment.
Another $3,131.02 was charged in 2015. There is currently an outstanding bill of $5,337.12 for 2014 (interest is calculated daily).
Among the options presented to the committee were to apply to the province to have the 2014 taxes written off or to provide the church with a grant to cover the outstanding taxes.
Finance director Kris Dalio noted that the city has a set of rules right now that don't allow for thrift stores – run by non-profit organizations or otherwise – to be eligible for permissive tax exemptions.
"I believe the decision would be more than just St. Michael's today. If we were to provide financial assistance outside of the rule set that the city of Prince George currently has, I believe there's at least a couple of organizations that operate thrift stores that could also want that same financial assistance," Dalio said.
Forgiving the taxes going back to 2013 for the Salvation Army and St. Vincent de Paul thrift store operations would amount to $26,327.59.
Beyond that, it would open the door to any organization to come and ask for help with anything outside of the city's policies, said Dalio.
"Administration still stands behind the fact that while St. Michael's does great work – and it's not challenging the benefit the organization provides for our community, it's very valued – it's just that our current rule set doesn't allow for that," Dalio said.
Social planning manager Chris Bone has been tasked with reviewing the city's social assistance programs, including permissive tax exemptions. A report on her findings will come before city council next year.
The administration's view was for council to wait for that report, said Dalio.
Committee members ultimately agreed, approving the recommendation to not grant financial assistance to thrift stores unless they approve changes to the city's permissive tax exemption policy.
Charities often come to the city because they have nowhere else to turn after federal and provincial funding cuts, said Coun. Brian Skakun.
The committee also recommended not providing grants to cover the 2015 taxes of the Farmers' Market Association, Native Friendship Centre, Metis Housing Society, Salvation Army and Prince George Lodge Loyal Order of the Moose.
Those organizations, including St. Michael's, had applied for permissive tax exemptions but were rejected for a variety of reasons ranging from thrift stores not being included in city policy, to not having construction completed on their buildings by the Oct. 31 deadline.
Providing grants would have cost the 2016 budget $37,618.
A final decision still has to be made by city council at a future meeting.
