Calgary councillor wants tax forgiveness for Kensington legion branch

A Calgary city councillor wants a local Royal Canadian Legion branch to receive tax forgiveness out of fears the group “may be forced to cease operations,” according to a notice of motion set to go before city council.

Years ago, the Royal Canadian Legion branch in Kensington came forward with plans to sell a portion of their site to a developer and use that money to build a new building that would include commercial leasing space. Officials broke ground on the new building in March of 2016.

The plan was supposed to sustain the branch as well as produce tax revenue for the city, however, a slow economy has kept most of the building empty, according to Ward 7 councillor Druh Farrell. Her notice of motion details how the branch faces a roughly $80,000 property tax bill for 2019 and still owes outstanding taxes.

“In order for them to stay afloat they need some tax forgiveness,” Farrell said in an interview Friday.

“What I’ve asked in this notice of motion is that they pay the same amount that they paid in the old building as they go through this process.”

The notice of motion suggests that the branch should pay just less than $16,000, which was the group’s property tax bill in 2016. Farrell noted it’s not unprecedented for legion branches to receive tax breaks.

“Legions provide, really, an essential role and service,” Farrell said.

“They’re a meeting place for people and a place to provide fellowship and it’s important for us to support them.”

The Legion office in Alberta did not respond to interview requests on Friday, however, a national communications official did note in an email “that tax consideration for legion branches by communities or municipalities in Canada is not unusual.”

A provincial official with the Canadian Taxpayers Federation (CTF) said that he believes “the legion does provide a great community service,” but admitted that the CTF is “often very leery of these one-off property tax breaks.”

“What council really needs to understand is the big picture here: that every single Calgarian needs a property tax break right now,” Franco Terrazzano, the CTF’s Alberta director, said in an interview Friday.

Tweet This Click to share quote on Twitter: "What council really needs to understand is the big picture here: that every single Calgarian needs a property tax break right now," Franco Terrazzano, the CTF's Alberta director, said in an interview Friday.

Farrell’s notice of motion concerning the Kensington Legion branch is not the only tax forgiveness measure being put before council. The group will debate them all on Monday.