Town council gave first reading to a bylaw that would tax student dormitories.
The vote amongst councillors on Nov. 23 was unanimous.
The Municipal Government Act states that such properties are tax-exempt unless a council passes a bylaw otherwise.
If passed, this bylaw would not take effect until one year later, as stated under the Act.
In this case, the taxation bylaw came before council in light of Olds College's agreement with College Housing Olds Co. (CHOC), a contractor operating residences on campus for profit.
“Rather than have citizens pay the burden of the taxes for private enterprise at an educational institution, how do we take those dollars and cents and have them benefit the community as a whole, including the college and citizens. Put the money back into the community, is what I'm saying,” said Mayor Judy Dahl.
Chief administrative officer Norm McInnis said it's less common for institutions in higher education to remain tax-exempt in Alberta.
“We're catching up with that and Olds hasn't had a problem with housing being exempt under the old regime, where Frank Grisdale Hall was fully run and operated by Olds College. But now with the private company operating facility, it did bring a new dynamic for council to consider.”
In May, CHOC, which financed and built the $28.8-million Centennial Village, sent a delegation to the policies and priorities committee, asking for several “alternative options” to taxation.
Some included: taxing leased retail spaces within Centennial Village and conferences that were not student-related. CHOC also asked that taxes be waived during the academic year.
This was needed to keep monthly rental rates low for students, the committee heard.
CHOC could not be reached for comment on the bylaw discussed by council.
McInnis said the assessment value of student dorms hasn't come in yet and believes it would be CHOC paying the taxes.
He adds council has asked him to work on an agreement ensuring tax dollars raised would benefit both the town and college. That strategy has been in the works for a few months and could be tabled before end of year.
“I think it will be something both the college and the council are happy with but it's not fully developed yet.”
"Rather than have citizens pay the burden of the taxes for private enterprise at an educational institution, how do we take those dollars and cents and have them benefit the community as a whole, including the college and citizens." JUDY DAHL
