Exempting legions from property tax the right thing to do
Last November, Ontario Premier Doug Ford spoke at the 17th annual veterans’ appreciation luncheon in Oakville, an event organized by the health care firm Access Abilities.
In a year that marked the 100th anniversary of the end of the First World War, he said this: “Our veterans have paid their fair share to Ontario and to Canada. We remain committed to ensuring legion halls in Ontario pay no property tax. It is the least we can do to recognize and honour the service and sacrifices made by our men and women in uniform.”
These remarks were consistent with a promise that Ford made during last summer’s election campaign.
One month and one day later, the “Restoring Trust, Transparency and Accountability Act” — an omnibus bill with 45 separate schedules — received Royal Assent and became law in Ontario. It amended the Assessment Act by exempting the memorial homes, clubhouses and athletic grounds of all Royal Canadian Legions in Ontario from property tax beginning this year. The province of Alberta had previously passed a similar province wideexemption for its legions.
While freeing legions from property taxes has merit as a symbolic act of appreciation for the service of Ontario’s veterans and military community, it is also an attempt to help shore up an increasingly uncertain financial future that has been challenging the legions for years.
With more than 270,000 members in
1,400 branches across the country — about a third of which are in Ontario — the Royal Canadian Legion is still Canada’s largest veteran support and community service organization. Nonetheless, its membership has been dropping significantly for decades, from 604,000 in 1984 to 275,000 today. The membership is also aging, with 80 per cent now over the age of 55.
Even with the 1998 decision to open membership to the general public, legions have been challenged to attract a new generation of members for whom bid euchre, darts and meat draws just don’t cut it as entertainment.
Reduced membership means fewer volunteers. It also means less revenue and increased pressure on operating costs — including property taxes — which are always on the rise. As a result, many Legions are struggling to make ends meet and keep the doors open. Some legions are downsizing or merging; others are selling off their properties.
For example, Royal Canadian Legion General Wingate Branch 256 in Toronto — one of the few Jewish legions in Canada — closed its doors last June after 84 years of service.
In Ontario, there are a number of classes of property that are exempt from local property taxes, including government lands, churches, cemeteries, schools, universities, colleges, public hospitals, children’s treatment centres, children’s aid societies, long term care homes, nonprofit hospices, exhibition buildings and boy scout and girl guide properties.
It is ironic that historic battle sites are exempt, but legions are not. Should legions be added to this list? Of course they should. In addition to serving veterans and promoting remembrance, the more than 400 branches of the Ontario Command sponsor valuable community programming and raise funds to assist local organizations.
To their credit, both the City and the County of Peterborough have programs in place that rebate the full amount of property taxes paid by registered charities, including legions. That means that the new provincial exemption will have no impact on city and county revenues.
It also means that local legions will no longer have to pay their taxes and then apply to have them rebated, a small victory in the administrative arena.
On a provincewide basis, Premier Ford’s government has made the right decision and should be roundly congratulated for it.