Regina daycare centres appealing 'devastating' property tax hike
City reclassified several daycares as commercial properties which doubled their taxes
The Cathedral Area Co-operative Daycare and Normanview Daycare are appealing a decision which upheld their city tax increase in Regina. The Saskatchewan Municipal Board will hear the appeal on Tuesday.
Five non-profit daycare centres operating in former houses had their tax class changed by the city from residential to commercial earlier this year.
This resulted in taxes being doubled and, in one case, tripled. For example, the Cathedral Area Co-operative Daycare went from paying $3,500 to $8,000.
"They (daycare centres) pay the same kind of taxes that any other business like Wal-Mart or Tim Hortons would pay. It's very difficult for these little daycares because they are small, non-profit daycares," said Colleen Schmidt board member for the Cathedral Area Co-operative Daycare.
"This is a very, very devastating tax increase."
First appeal denied
In March, the centres appealed the increase at the Regina Board of Revision and were denied.
The Cathedral and Normanview daycare centres are now appealing that decision in front of the Saskatchewan Municipal Board.
Their argument is the city failed to treat all daycare centres the same during its assessment. For example, 20 daycare centres operating inside schools did not have their tax status reviewed. These daycare centres do not pay property tax because of their locations in the schools.
The centres appealing the decision say that is against the Cities Act and the City of Regina should not be taxing some daycare centres and not others.
"No daycare ever wants to think about the idea of cutting spaces but financially, if it's necessary, it might be something the daycare might at some point have to consider," said Schmidt.
Schmidt said with Saskatchewan trailing other provinces in the amount of licensed spaces, making the timing of this increase even more problematic.
"It's extremely important the daycare community stand up and express the difficulties they are having staying in business or we will lose spaces," said Schmidt.
Curling rinks or daycare centres
Tax exempt status is not part of the appeal but Schmidt said her group will be going to the city hoping to get in front of council to try and get daycare centres on the exempt list.
The city provides tax exemptions to a number of different organizations and buildings. This year two Regina curling clubs received property tax relief for 2017 and 2018.
"Curling is great it serves what purpose it does but daycare is in an entirely different league. It is essential. Without daycare people don't go to work," said Schmidt.
Comment from the city
The City of Regina provided a statement to CBC.
"We're aware of today's appeal, and await those results — we want to be sure everyone is treated fairly, paying their fair share and not more or less than that," the statement said.
"We're pleased that the provincial government is reviewing the legislation on this issue. When that review is complete, we'll know more about what options municipalities will have available."
Decision expected in two months or less
The Saskatchewan Municipal Board is hearing the appeal of the appeal to the Regina Board of Revision. If the municipal board disagrees with the initial decision, it has the power to make reverse the city's decision.
A spokesperson for the board says a written decision is typically submitted in 60 days or less from the appeal hearing.