An eligible charity will be entitled to a rebate as calculated by the City’s Finance Department equal to a maximum of 40% of the apportioned amount of taxes paid through the organization’s lease payments.
If the eligible charity is required to pay an amount as outlined in sections 367 and 368 of the Municipal Act, 2001 dealing with the flow-through of taxes in the case of gross leases, the rebate will be the amount that the charity is required to pay under those sections.
This rebate program was initiated by the Province of Ontario in 2001 requiring municipalities to provide rebates to eligible charities occupying leased commercial or industrial property.
On August 27, 2001, Council passed By-law 2001-159 establishing a tax rebate program for eligible charities. The following summarizes the by-law and should be read in conjunction with the application for tax relief.
Eligibility
Application
Frequently Asked Questions
Which charities are eligible for a rebate?
The organization must be a registered charity as defined by the Income Tax Act of Canada and have a registration number issued by the Charities Division of Revenue Canada. The organization must be occupying leased commercial or industrial property and be able to identify the amount of taxes included in the lease payments. New charities will be eligible to apply for a rebate under this program.
What if the charity commences occupation part way through the year?
An organization will be eligible for a rebate even if the organization commences occupation after January 1st of the year for which a rebate is requested. In those cases, the rebate will be calculated based on the period remaining in the year.
How is the rebate determined?
An eligible charity will be entitled to a rebate as calculated by the City’s Finance Department equal to a maximum of 40% of the apportioned amount of taxes paid through the organization’s lease payments.
How are rebates to charities paid?
When should a charity apply for a rebate?
Applications may be made after January 1 of the year and no later than the last day of February the following year.
What if the charity ceases to operate or moves out of the City of Sault Ste. Marie?
If the organization receives a rebate in a year and then ceases to operate or moves out of the City of Sault Ste. Marie, the charity shall repay to the City a pro-rated amount of the rebate.