Tax Exemption For Non-Profit Organizations Program
2005-2006

This program is officially open for the 2005 fiscal year. Applications are being accepted until November 30th, 2004.

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Eligibility, Applications and Renewal

Halifax Regional Municipality can help some non-profit organizations reduce their level of property tax through the Tax Exemption for Non-Profit Organizations Program. The program is administered on behalf of Regional Council by the HRM Grants Program and HRM Taxation Office.

This newsletter describes how this program operates, explains who is eligible, how to apply for assistance, and how awards are determined. This program is available only to registered non-profit and charitable organizations located within the boundary of Halifax Regional Municipality.

Under the Municipal Government Act (1998) there were two clauses added to Section 134 of the MGA with a delayed effective date of April 1st, 2003. They are as follows:

(2) Property shall be put up for tax sale if taxes are in arrears for the preceding three fiscal years.

(3) Regional Council may defer tax sale proceedings for a property for up to two years.

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Types of Assistance

There are currently four separate types of assistance offered to organizations under this program:

• Conversion from commercial tax rate to residential tax rate. This level of exemption is most often awarded.

• A partial exemption on the residential property tax rate, either in the amount of 75%, 50% or as high as 100%.

• Conversion from business occupancy tax rate to a commercial tax rate. for registered societies only, proof of registration is required (copy of your registration certificate).

• Pre-Authorized Payment Program, this option is available to every property owner in HRM. With an active payment plan the property owner can stop tax sale proceedings and at the same time work out a payment schedule which best fits their budget.

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Partial Tax Exemption

The level of partial tax exemption most often awarded is to convert a property's tax rate from the commercial tax rate to the residential tax rate.

Sometimes a property is assessed at several tax levels; part of the property may be residential or resource and part may be commercial. Your taxation account separates these different tax levels.

If the property is assessed at two or more tax levels, then the exemption only applies to the portion of the rate which was approved by Regional Council.

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Eligibility

Property tax exemption is available only to non-profit organizations registered with NS Registry of Joint Stocks or non-profit organizations with a Federal Charitable Status Number, or a society that has been granted society status through an Act of the Nova Scotia Legislature, or through a Federal Act of Parliment.

Higher rates of tax exemption may be awarded to organizations which provide a program or service which replaces a municipal program, those who build and operate a facility with affordable public access, groups whose property protects public access to waterfront (beach, lake, river or green space), environmental conservation, registered heritage properties (Municipal or Provincial) groups who provide programming for persons with special needs or in economically disadvantaged neighborhoods.

Exemptions are awarded to organizations based on the type of service they provide to the community. Presently, the categories are as follows:

• Community-Based Social Supports: Organizations who provide programming for seniors, disabled persons, family/parenting, child care, emergency assistance.

• Shelters & Affordable Housing: Emergency shelters, short-stay transitional residences, homes for persons with special needs, and non-profit affordable housing projects.

• Recreation: Community-owned and operated recreation/sports facilities; includes parks, playgrounds, arena's, sport fields and courts, or permanent camp sites.

• Community Facilities: Community-owned and operated facilities which provide public access and reduced or free rental rates for local non-profit groups, such as a community centre, community hall, or events plaza.

• Cultural Organizations: Organizations whose membership promotes social relations within and between different cultural groups, cultural heritage, and public education.

• Heritage & Historical Attractions: Registered heritage properties, historical attractions, interpretation centres.

• Arts: Arts facilities (theatre, music studio, dance studio, gallery space, exhibit and recital facilities) and arts development.

• Service Clubs: Community service organizations whose membership fund-raising supports local non-profit groups and charities, community events and social activities, social benevolence, and community participation. Higher rates of tax exemption may be awarded to service clubs who own and operate a sports/recreation facility or community centre.

• Environmental Conservation: Environmental and wildlife protection groups, lands conservation (marsh, woodland, beach, lake or lands of special ecological significance), and animal rescue.

• Health: Volunteer organizations who provide free public education or support services, such as peer support and rehabilitation.

• Other: Benevolence organizations who provide humanitarian aid to people or animals.

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New Applications

Application forms are available from all six HRM Customer Service Centres, through the HRM Call Centre at 490-4000, directly from the Grants Program Staff at 490-5454.

Application Form (PDF Format)

Renewal Form (PDF Format)

All application forms must have the following information attached to them:

• An updated list of the Board of Directors

• Last completed financial statement, audited or unaudited

• Program reporting (tell us what you do)

• Proof of current registration with the Registry of Joint Stocks or a Federal Charitable Status Number

All information will be reviewed by staff members for accuracy before being sent to the HRM Grants Committee for approval. The application process can take from six to eight months to completely process and grant approval for a tax subsidy under the by-law. All new organizations applying for tax exemption should be prepared to pay at least one year's taxes following the submission of their application for exemption.

All applications for assistance and recommendations by the Grants Committee are presented to Regional Council for final approval. The table below illustrates the time line for the approval process of a by-law report by Regional Council:

Not all applications meet the criteria and guidelines for tax exemption, the reasons for declining an application vary but often include one of the following:

• Tax arrears with no active payment plan and no intent shown by the organization that they are attempting to rectify the situation

• Inability to demonstrate need

• Not a registered non-profit or charitable society

• Not a public service that falls within the mandate of the Municipal Government

• A business, commercial, industrial interest group, or professional association

Applicants which the HRM Grants Committee determines are ineligible for a public subsidy will be notified so they have time to adjust their budget accordingly.

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Renewal Applications

A renewal application form is mailed out in September to applicants currently on the by-law. Additional copies are available directly from the Grants Program Staff at 490-5454.

All renewal forms must have the following information attached to them:

• An updated list of the Board of Directors

• Last completed financial statement, audited or unaudited

• Program reporting (tell us what you do)

• Proof of current registration with the Registry of Joint Stocks or a Federal Charitable Status Number

An organization on By-law T-201 can be removed for non-compliance with the by-law for any of the following reasons:

• Not a registered organization. (Registration defaulted, or revoked)

• Lack of reporting in excess of two years.

• Providing false or misleading documentation.

• For tax arrears in excess of three years.

To repeal tax exemption status requires a formal recommendation from the HRM Grants Committee and the approval of Regional Council.

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Business Occupancy

If an organization is a Registered Society with the NS Registry of Joint Stocks and being assessed at the Business Occupancy tax rate. Contact the Provincial Assessment Office located at 780 Windmill Road, Dartmouth or call (902) 424-4500 to request a review of your taxation classification. Proof of registration is required.

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Pre-Authorized Payment Program

If your organization is having difficulty paying property taxes you can contact 490-4000 for information on our Pre-Authorized Payment Program.

Regular monthly payments can be withdrawn from your bank account. This may be helpful to groups who receive operating grants on a fixed schedule and can assist with cash-flow management. Interest is still charged on all taxes owing.

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Tax Sales

When taxes are outstanding for over three years, the organization's property may be put up for tax sale. Outstanding taxes and charges are then paid from the proceeds of the sale.

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Fire Protection

All properties within HRM's boundary are charged for fire protection. Organization's on By-law T-201 are responsible for payment of their portion of these charges according to the level of exemption they receive.

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Local Improvement Charges

When services such as sewer or water are put into a community charges may be billed to property owners in the community. These charges are not covered by the program and are to be paid in full by the organization.

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Business Improvement District Charges

Business District Improvement Charges are approved each year by Regional Council. These charges are not covered by the program and are to be paid in full by the organization.

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False Alarms

All organizations on By-law T-201 are responsible for the payment of any and all false alarm charges to their taxation account. False alarm charges are currently being billed to all HRM properties 3 to 4 times a year. The billing charges are as follows:

• First false alarm - issued a first letter and is not charged to the property (this one is free) within any consecutive twelve month period.

• Second false alarm - property owner is charged $100 (interest is charged on outstanding amounts).

• Third false alarm - property owner is charged $125 (interest is charged on outstanding amounts).

• Fourth false alarm - property owner is charged $150 (interest is charged on outstanding amounts).

• Every alarm after the fourth until a full year has lapsed from the date of the first false alarm is charged $150 (interest is charged on outstanding amounts).

False alarms may be appealed in writing to:

The written appeal must have sufficient documentation proving that the alarm was caused by an act of nature or mechanical error. For further information on False Alarms you can contact the HRM Call Centre at 490-4000.

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Submitting Your Application

Each year applications are available in September and due no later than the last working day of November. Mail your application and all supporting documentation to:

Contact The Grants Program / By-Law T-200