Fort Assiniboine Legion denied tax exempt status

WOODLANDS COUNTY - Woodlands County councillors denied a request from the Fort Assiniboine Legion for property tax exemption status.

Councillors denied the request following a recommendation from administration at their April 15 Whitecourt council meeting.

Instead, councillors instructed administration staff to discuss granting property tax exemption to Woodlands County not-for-profit organizations in an upcoming tax policy committee meeting.

The executive of the Fort Assiniboine Legion (#210) asked that their Legion and all others in the municipality be granted property tax exemption status. (The Fort Assiniboine Legion is the only Royal Canadian Legion in the municipality.)

"The members of [our branch] were advised by [the Alberta-North West Territories Command] that Legion branches have been exempt from paying land taxes as they are non-profit organizations that help the community." 

They then listed several activities the Fort Assiniboine Legion does to benefit the community, from donating fundraising proceeds to area schools (most notably in Swan Hills and Fort Assiniboine) and cemeteries, as well as Edmonton's Valour Place, to the upkeep of the Fort Assiniboine Legion Hall which is available for the community to use.

Valour Place is a temporary home away from home for all Canadian Forces members, RCMP, Families of the Fallen, Veterans, First Responders, and their families who require medical treatment in Edmonton. It is made available at no cost.

Interim corporate services director Andrew World said while it is true that Alberta's Municipal Government Act (MGA) does allow for property held or used by Royal Canadian Legions under Section 363 (1) (C) to be exempt from property taxes, only certain portions depending on the circumstances.

He explained that Section 365 (1) of the MGA states that property licensed under the Gaming, Liquor, and Cannabis Act is not exempt.

"If you have a liquor license, you can't be exempt for that portion of your facility," World said. It makes sense when you think that [a Legion] could compete with an establishment two blocks away, and they pay taxes."

World recommended council deny the request, adding other avenues to help community organizations, such as the Fort Assiniboine Royal Canadian Legion.

He stated that councillors had the authority to cancel property taxes for any property or ratepayer.

"There are a few considerations to keep in mind," World said. "It should be equitable, and it only applies to taxes already outstanding, not future taxes to municipal taxes. For instance, you can't cancel school taxes."

World noted the municipal property tax portion for the Fort Assiniboine Legion in 2023 was $623.13.

Whitecourt West Coun. John Burrows suggested moving the discussion to council's upcoming tax policy workshop.

"The mechanism [the Legion] is asking for isn't really available," suggesting the tax policy workshop would be the best forum for discussion. "Whatever we do, we need to do it uniformly."

Coun. Bruce Prestige asked how one would divide the taxable portion of the Fort Assiniboine Legion, noting the downstairs portion is officially the lounge, but they also host banquets and events upstairs that serve alcohol.

World did not know the answer, saying the municipality's assessor made the determination.

Barry Kerton, TownandCountryToday.com