What Are Property Tax Exemptions

Property tax exemption simply refers to the act of you or your property being excluded from the mandatory obligation to pay taxes on the property. Tax theorists all over the world, however, are of the idea that such exemptions should not exist because the proceeds from the tax are used for the provision of common services, hence no one should be left out. But there are valid justifications as to why some types of properties need to be exempted from paying taxes. The Canadian government has clearly outlined the circumstances, conditions and the types of properties which can be exempted from paying property taxes.

Qualification for tax property exemption in Canada

The following are the qualification for property tax exemptions as laid out under section 362(1) of the Canadian taxation laws-:

Non-profit youth sports facility

The fast property tax exemption is for non-profit youth sports facilities. For such a facility to qualify for property tax exemption it must not be restricted and must be accessible to the general public for at least 70% of the time and it has to be used by persons under the age of 18 years, 60% of the time. Examples of such facilities in Canada include wading pools and skateboard parks.

Places for charitable and benevolent uses

The other categories of property that qualify for tax exemption in Canada include places used for charitable and benevolent purposes. Such places must be beneficial to the general public in the local community and access must not be restricted for the majority of times that the properties are in use.

Lodge facilities receiving provincial operating subsidies

If you own a property that offer lodge facilities subject to provincial operating subsidies in Canada, then you may also be exempted from paying property tax. Under the Canadian tax laws, lodge accommodation refers to a home used by senior citizens who do not desire to maintain their homes or are not capable of maintaining their homes. It also includes the provision of the particular services that such people may require when in such homes.

Other properties which qualify for tax exemption in Canada

Other than the above categories of property, the following may also be considered for tax exemption in Canada-:

• Any section of a property used as a part of a professional sports franchise.
• Any section of a property whose majority users are persons above the age of 18 years and 40% of the time whenever the facility is in use.
• Any part of a property associated with a community organization in Edmonton or Calgary and which does not have any associations with Edmonton Federation or Calgary Communities.
• Any other section of a property whose use is restricted by other regulations or conditions stipulated in section 7 of the Regulation for at least more than 30% of the time whenever the facility is in use.

These are some of the instances when a property in Canada may be exempted from the various property taxes.