Deadline Approaching for Charities to Apply for Property Tax Rebates

By Joel Secter

Not long ago, we wrote about property tax exemptions for registered charities (among others) under the Ontario Assessment Act. The conditions for such an exemption being that a charity own and occupy the real property that it uses. Considering that not all charities own the premises that they occupy, the Province of Ontario requires municipalities to provide registered charities that rent and pay property taxes with a rebate of at least 40 percent. The deadline for the 2011 property tax rebate application is February 29, 2012.

According to the Municipal Act, municipalities in Ontario must have a tax rebate program for the purpose of giving eligible charities at least 40 percent of the property taxes paid by them on certain properties which they either own or rent. Applicants must be a registered charity, as defined under subsection 248(1) of the Income Tax Act (Canada), and have a registration number issued by the Canada Revenue Agency. Only properties classified as commercial or industrial are eligible for the rebate. Therefore, applicants must own and occupy the commercial or industrial property for which the rebate is being sought or be a tenant in a commercial or industrial property for which a rebate is being sought.

As mentioned, the deadline to submit an application for 2011 is February 29, 2012. Applicants that meet the criteria outlined above will be provided with half of the rebate within 60 days of their application being received and the balance of the rebate within 120 days. Applications can be made based on an estimate of the taxes payable by the eligible charity; however, adjustments may be made after the final tax bill for the year is issued.

The procedural requirements that must be satisfied will vary from municipality to municipality so it is important to check with your municipality for the conditions that must be met. Please feel free to contact one of the lawyers at Drache Aptowitzer LLP should you have any questions or require assistance with your charity's application.