A new legal standard applies to charities seeking an exemption from municipal property taxation.
The Ontario Court of Appeal determined the new provisions in Stamford Kiwanis Non-Profit Homes Inc. v Municipal Property Assessment Corporation, the test for an exemption under section 3(1)12(iii) of the Assessment Act now requires that an applicant demonstrate that it:
- owns, uses and occupies the land;
- is a charitable, non-profit philanthropic corporation;
- is organized for the relief of the poor, which means: (a) the primary purpose or use of the subject property is relief of the poor, and (b) the corporation operates, at least in part, for the relief of the poor. The corporate objects may inform (a) and (b) but are not determinative. There must be an element of economic deprivation or need on the part of the corporation’s intended beneficiaries; and
- the applicant must be supported in part by public funds (which has previously been determined to mean funding from government sources).
The Stamford Kiwanis expands the range of organizations that may qualify for a property tax exemption under section 3(1)12(iii) of the Assessment Act. The previous test set out by the Court of Appeal in 1995. namely “Endeavour Test” will no longer be applied.
Usually, the Court sits as three members of the Panel of Judges, but it this case, since they were overruling one of their own prior decisions, it was increased to five.
Brian Madigan LL.B., Broker