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Drayton Valley Minor Baseball, Drayton Valley Legacy Wrestling and Drayton Valley Seniors Pickleball Club are among the local non-profit organizations based in the Wellhouse Building that will benefit from a property tax exemption granted by council this month for the 2020 tax year.
Taxing Circumstances

Drayton Valley council grants partial tax exemption request

Jun 14, 2019 | 11:15 AM

Council for the Town of Drayton Valley has come up with a compromise regarding a property tax exemption request impacting a trio of local non-profit organizations.

According to Town officials, the request for property tax exemption was for the Wellhouse Building in both 2019 and 2020, a facility privately owned but occupied by Drayton Valley Minor Baseball, Drayton Valley Legacy Wrestling and Drayton Valley Seniors Pickleball Club.

Councilor Bill Ballas says requests of this nature would ideally be submitted for consideration prior to budget approval, noting the 2019 budget has already been approved.

“Our 2019 budget includes tax relief of 10 per cent for both residential and commercial properties making us operate under tight financial restraints for this year,” he explains. “We have budgeted to deliver a level of service that our residents expect and deserve and is something that we do not want to have to reduce. Council therefore could not accommodate the request for 2019 but passed a motion to approve a property tax exemption for the 2020 Tax year to continue until such time that usage of the building changes.”

Town officials say it was determined the user group would need to apply through the Community Organization Property Tax Exemption Regulation (COPTER), noting the Town currently has 10 properties that are exempt from property taxes via COPTER.

In addition, Town officials estimate that a loss of revenue based upon the 2018 municipal portion of the property tax levy would be around $21,022.14 each tax year. If approved effective the 2019 tax year, the property tax exemption request would result in a revenue shortfall as the final budget has already been approved.

Ballas notes however that council greatly appreciates the generosity of the building owner for assisting and supporting local sporting organizations.