North Battleford councillors Len Taylor, left, and Kent Lindgren, shown at council Monday. Council discussed abating the tax increase for care homes now classified as commercial properties, instead of residential. (Angela Brown/battlefordsNOW Staff).

By Angela Brown

Care Homes taxation

North Battleford Care Homes to see tax abatement

Jul 17, 2019 | 2:36 PM

The City of North Battleford is giving private, for profit care homes a tax break to lessen their burden since they moved into a significantly higher tax classification for their properties.

As part of the 2019 property assessment adjustments, assisted care homes’ tax classification has changed from residential to commercial since these sites provide 24-hour care to seniors living in their properties.

Council accepted administration’s proposal to abate 90 per cent of the municipal tax increase from 2018 to 2019 for these properties, less the four per cent tax increase included in the 2019 budget for all city properties.

Finance Director Steve Brown will send a letter to the Ministry of Education to request a similar abatement for the education tax increase for these properties.

Mayor Ryan Bater said the amount of the abatement will be gradually reduced each year.

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“We want it to be flexible,” Bater said adding the city wants to reduce the initial burden with the abatement process. This will allow managers of the affected facilities time to make some adjustments to accommodate the substantial tax increase, now that their properties are classified as commercial.

Bater said commercial properties have a higher percentage of the property taxable, leading to higher costs.

The item will come back to council each year for approval of the abatement amount. Eventually, the care homes will pay 100 per cent of the increase.

Brown said a few care home properties will be affected by the change.

He mentioned the mill rate is also higher for commercial properties, as another challenge for the owners to warrant the interim abatement.

His report indicated the care homes wouldn’t have time to make any increases to rents or rates for this year as an option to help recover the added cost, so the city took that into account when it considered offering the abatement.

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angela.brown@jpbg.ca

On Twitter: @battlefordsNOW