Churches fear higher taxes following inspectors’ visits
Some say city is becoming increasingly strict in its interpretation of regulations
Churches in Montreal are reporting being saddled with unwarranted municipal tax bills that could jeopardize their ability to host community groups and leave their heritage properties vulnerable to real estate developers.
Generally exempt from municipal tax bills under provincial law, some churches are reporting the city has recently become more strict in its interpretation of the regulations in order to extract tax revenue.
The city has responded that it is merely ensuring no one is defrauding the system. Rev. Joël Coppieters of the Côte des Neiges Presbyterian Church cited a $3,800 tax bill for 2015 for the minister’s residence attached to the Chambit Presbyterian Church in Snowdon. Manses are generally exempt, but the city’s tax exemption office said Chambit was charged because it had been unoccupied for almost a year while the church was waiting for a replacement minister.
In addition, representatives from the exemptions office have been systematically visiting churches, taking pictures of all the rooms and making a list of how each space is used. Only those used for public worship, like Bible studies or Sunday school classes, will be exempt, churches were told. Rooms lent out to community groups and activities are not exempt, and churches will be taxed accordingly. Coppieters said he has heard similar stories from fellow congregations, who are expecting tax bills. He has not heard whether synagogues or mosques are receiving similar visits.
“Rooms in our churches that have historically been lent out, usually at very little cost, to Boy Scouts, Girl Guides, food banks, AA recovery groups, etc.,” now put churches at risk of losing exemptions on those parts of the building, he said.
“Our take is simple,” said city councillor Peter McQueen of the opposition party Projet Montréal. “We do not want to get into the issue of whether churches should be taxed or not. What we are saying is they should not be taxed when there is a move toward community groups usage.”
Rules governing the sale of a parish are being more stringently enforced, as well. Before, when a congregation closed, it would retain its tax exempt status until a new congregation or communityoriented organization purchased it, a process that could take years given the slower pace of decisionmaking on the part of organizations typically governed by a board of directors staffed by volunteers.
Now the exemptions office is applying municipal taxes as soon as religious services cease. School board offices that take their cue from the exemptions office also send tax bills. Cash-strapped congregations unable to shoulder additional tax bills will sell to the first bidder, typically well funded real estate developers, “accelerating the pace at which historic church buildings are lost to the community and turned into garages, restaurants and condos,” Coppieters said.
“One of the ironies here is that while all of these great architectural gems are being lost, I know of at least 15 to 20 congregations who are actively looking for worship space … but they can’t get in there quickly enough to beat the developers.”
Inspectors also told him churches would have to pay taxes if part of the building was closed for renovations.
Pierre Desrochers, president of the city’s executive committee and the member responsible for city finances, said the inspections are merely part of the city’s regular process and there is no program of targeting churches.
There are 1,341 buildings in Montreal that have tax-exemption status because they are religious institutions, or the residences of religious authorities, or buildings used as religious schools, Desrochers said, and the city is ensuring none of them are being used, or rented out, for other purposes.
Over the last three years, inspectors have made 1,100 visits, and 40 institutions lost their status, he said.
Those who use part of their properties for community organizations are not at risk, Desrochers said.
“I want to reassure everyone that these establishments can keep their religious vocation status, even if they lend out part of their property to community groups like Alcoholics Anonymous or the scouts,” he said.
If churches disagree with the exemption office’s interpretation, they can contest their evaluation, just like any homeowner, or go to the Tribunal Administratif du Québec to argue their claims, Desrochers said.
Coppieters, however, notes the tribunal already has said a municipality must wait until a property is used for another non-exempt function before it starts charges taxes, as opposed to sending bills based on when religious services ceased.
Local churches are certain they would win if forced to go to the tribunal, Coppieters said.
But in his Côte-des-Neiges neighbourhood, where it’s estimated 6,000 children don’t get enough to eat on a daily basis, Coppietiers said he would rather be fighting hunger than tax inspectors.
“In these times of tight budgets and limited human resources, we would far rather be investing our time and funds in pursuing our charitable missions than in pursuing legal actions against the city.”