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Published on May 22, 2024 • 3 minutes to read
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Edmonton City Council, Wednesday, February 21, 2024. Photo by David Bloom /Postmedia
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Many Edmontonians would be shocked to learn that property taxes subsidized 656 religious institutions to the tune of $20.3 million last year, but that was confirmed in a Nov. 27, 2023 memo to city council regarding the cost of property tax exemptions in the city. It is past time to discuss these exemptions.
Cities are required by law to grant these exemptions. As a result, other taxpayers, such as homeowners and small businesses, have to foot the bill for the municipal infrastructure and services that the exempt properties benefit from. Even if you're an atheist, you're still stuck with the church bill.
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Eliminating the religious property tax exemption could lower property taxes by about 1 percent. Alternatively, the city could use the additional revenue to create a $100 million investment fund in just five years. Annual dividends from these funds can support important city initiatives. This is a big amount.
As the housing and climate emergencies intersect, an important question is whether we are making the most of all available land. Edmonton's religious properties are valued at nearly $1 billion, and the current tax exemption is a perverse incentive to prevent property development.
Some of these churches could become tax-exempt affordable housing. More Edmontonians should be inspired by the story of Westmount Presbyterian Church, which consolidated its property into a small church and 16 net-zero affordable townhomes. Similarly, other facilities can consolidate revenue from development and use it to pay for the shelter's operating costs.
Many churches are in prime locations and have large parking lots, but are inactive most of the week. In a city that is expected to grow by 100,000 people over the next two years, underutilized religious sites represent a missed opportunity to build new housing.
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We also need to ask whether these faith groups provide broader public services to their communities. If the city had spent her $20 million on other budget items, it would be natural to wonder whether taxpayers were getting a bang for their buck.
But we know that some of these services may not be accessible or welcome for all residents, and in some cases may not be welcome. Remember COVID-19 or the anti-SOGI (Sexual Orientation and Gender Identity) protests? Our government has a constitutional obligation to be religiously neutral and should not subsidize organizations that preach intolerance and bigotry.
Religious organizations already compete in the marketplace of ideas for (tax-deductible) donations. Should the city also be responsible for subsidizing their operations?
Reevaluating how religious property is taxed is not unprecedented. Montreal changed its policy in 2015 to tax religious spaces not used for worship. Vacant buildings and government property are taxed. In 2022, the City of Iqaluit passed an ordinance eliminating the religious property tax exemption. By 2018, the City of Edmonton had begun taxing surplus land held by religious organizations that is not directly used for “the service of God, public worship, or religious education.”
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After Pope Francis visited Edmonton last year, there was a public outcry about the costs that excessive policing is bearing on the public, despite the Catholic Church's enormous wealth (much of it accumulated through colonialism, which necessitated an apology tour). The Catholic Church and The Church of Jesus Christ of Latter-day Saints are some of the richest landowners in the world. This makes about as much sense as giving Apple and Amazon a tax exemption.
The most valuable asset a city has is its land, and even if this change were to be phased in over the next five years, millions of dollars could be raised to offset tax rate expansions or to reinvest in universal public services available to everyone, regardless of faith.
Ian Bushfield is a former Edmonton resident and executive director of the BC Humanist Association, which has been studying the issue of religious property tax exemptions across Canada for several years.
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