Permissive Tax Exemption

We have a Men's Shed in our Municipality. They have purchased a building which they intend to rent out spaces to several businesses. They have applied for permissive exemption, but I do not think they qualify. Anyone else had an issue like this?


  • It sounds like your issue is with an NPO that qualifies under the community charter for a property tax exemption (PTE) and your towns policy for a PTE however the organization is renting out portions of the land and building to for profit entities that would not normally qualify for a PTE.

    From the Community Charter (CC)
    (2)Tax exemptions may be provided under this section for the following:
    (a)land or improvements that
    (i)are owned or held by a charitable, philanthropic or other not for profit
    corporation, and
    (ii)the council considers are used for a purpose that is directly related to the
    purposes of the corporation

    It sounds like council might consider that the renting of space is not directly related to the purpose of the organization thus council could choose to not grant them an exemption.

    Really it all boils down to Council policy regarding PTE and what Council wants to do, if the org qualifies under the CC for a PTE.

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