A local society is lobbying for changes to the provincial tax code after the heritage building that houses its office received its first tax bill since 1855.
To put this into historical perspective, Vancouver Island was still a British colony, and Confederation was still more than a decade away.
Ken Johnson, president of the Hallmark Heritage Society, says his society faces a tax bill of almost $3,000 for the Craigflower Schoolhouse assessed at $138,700. About 60 per cent of the bill would go towards the District of Saanich, the rest towards other authorities.
The Hudson’s Bay Company built the schoolhouse, said to be oldest standing school in B.C. Hallmark took over in December of 2015.
The province took over the building from The Land Conservancy and leases it the society as an office capable of hosting other functions. Hallmark’s mantra is to raise awareness about heritage homes and buildings in southern Vancouver Island.
Without knowing it, by signing a long-term lease the society assumed de-facto ownership of the building, says Johnson. It now finds itself in same category of businesses that pay taxes on revenues generated on provincial Crown land like mining and forestry companies.
This categorization runs contrary to the nature of the society, said Johnson.
“We are not a business,” he said. “Hallmark Heritage Society is a not-for-profit registered charity.”
Could the society have been aware of this change of status? No, said Johnson. The relevant legislation does not speak of situation like the society’s.
Johnson said the society could have applied for a municipal tax exemption, but the deadline for filing was July 31, 2016. However the society did not find out that it was being assessed until January 2017.
“I cannot file for something that I don’t know is happening,” he said, adding that the society is eligible to apply for a tax exemption next year.
The tax bill — $2,809 to be exact — poses a major financial burden for the society and its annual budget of about $10,000.
“We get funded by our membership and donations,” said Johnson. “We are not a rich group.”
The society, he said, is capable of sustaining itself. “But to do that, you need good control over your expenses and I don’t find that we have control over our taxes.”
In an notable twist, the District of Saanich also leases the land immediately surrounding the school from the province, but does not pay taxes on it.
Negotiations between the society, the province and the district are currently underway.
Johnson said his society told the province it would shoulder operational costs in exchange for a tax exemption. He also notes that several other societies find themselves in the same situation.