Rethinking Kelowna Religiously Owned Property Tax Exemptions
We Need Change
It’s time to ensure permissive tax exemptions benefit all residents.
24% secular population
17,970 out of 74,905 Kelowna residents are non-religious
Religiously Owned Tax Exempt Property Values $272,881,200 Lost ~ $1,000,000+ in taxes a year. Yes, it is a total of $272,881,200.
This July 2025, Kelowna religious organizations owning $272,881,200 in property value will once again be applying for a 5 year property tax holiday.
Kelowna residents will be required to take on the burden of ~$1,000,000 in lost taxes per year.
According to the 2021 census data 54% of Kelowna residents are non-religious.
According to Census Data by Decade…
Why should Kelowna commercial and residential property owners be subsidizing religious organizations that are rich, involved in political causes in Canada, and funding projects in foreign countries?
Some of these religious organizations are very rich and flush with cash.
Some of these Kelowna religious organizations fund what are essentially political causes in Canada and actively work against Human Rights – LGBTQ+ community, reproductive freedoms, dying for dignity.
Some of these Kelowna religious organizations fund religion-focused projects in foreign countries.
Join us in demanding that City Council pause the 5 year blanket tax break.
A new process needs to be established for scrutinizing religiously owned property tax exemptions.
Taxing religious properties is not an attack on faith, but a call for equitable participation in addressing societal challenges.
By generating public revenue, reallocating underutilized resources, and embracing inclusivity as stated in Kelowna’s 2040 Official Plan, religious organizations can play a pivotal role in shaping vibrant, just, and sustainable communities. Such a shift not only strengthens public services but also ensures that spiritual institutions remain relevant and aligned with modern human rights principles.
Place of Worship Exemptions vs Municipal Exemptions (click on tab)
In Kelowna, religiously owned tax exempt property is valued at approx. $272,881,200. There are two tax exemptions that can apply to religious property.
- REQUIRED by PROVINCE: Places of Public Worship are statutorily exempt under Section 220(1)(h) of the Community Charter. This exemption is for the building set apart for public worship as well as the land underneath the building (the footprint of the building).
- NOT REQUIRED: The land surrounding the place of public worship is not automatically exempt under this Section of the Community Charter. However, Section 224(2)(f) allows the Municipality to Permissively Exempt from property tax (PTE) the land that surrounds the exempted building.
Kelowna city council has consistently given permissive tax exemptions (Permissive Tax Bylaw 327) to the land and buildings surrounding the worship building without scrutiny except if there is a daycare or a residential house on the property, those structures do not receive a property tax exemption; taxes are paid on those portions.
BC Assessment’s mandate is to find the actual value/market value of each property in BC. For example, the Trinity Baptist Church on Springfield in the 2024 Roll Year Assessment that property was just valued over $33,000,000. It comprises of ~ 6.4 acres of land that would be considered quite valuable given its location and features. There are also considerable improvements on that property. The Trinity Baptist Church is statutorily exempt for the place of public worship and the land under the building. It is also receiving a FULL permissive exemption for the remainder of the land under the City of Kelowna’s Permissive Exemption Bylaw. Therefore, the Trinity Baptist Church is receiving the 1. full statutory tax exemption and 2. City of Kelowna full permissive tax exemption for land and buildings. They get a property tax holiday of $140,415 every year.
City of Kelowna does not need to give full property tax exemptions to the land surrounding the worship building. It is a historical privilege which has not been questioned. We are now questioning the value of these permissive tax exemptions.
What does taxing religious properties accomplish? (click HERE)
Generating Revenue for Public Services
The city of Kelowna is grappling with budget constraints that limit their ability to provide essential services. Taxing religious properties could generate millions in revenue. This additional funding could:
- Enhance city services: Improved public transportation, road maintenance, and community centers.
- Support education: Increased budgets for schools, modernized facilities, and expanded programs.
- Bolster healthcare: More funding for hospitals, mental health services, and public health initiatives.
Encouraging Efficient Use of Properties
Many Kelowna religious organizations own valuable real estate, some of which include underutilized buildings and land. A tax policy could incentivize these groups to evaluate their property and consider creative solutions:
- Selling excess properties: Proceeds from sales could be reinvested into their core mission while freeing up land for housing or other community uses.
- Creating mixed-use developments: Religious institutions could partner with developers to create spaces that include worship areas alongside affordable housing, benefiting both congregants and the broader community.
- Consolidating operations: Encouraging organizations to better utilize their existing spaces can lead to stronger, more engaged congregations.
Promoting Inclusivity and Human Rights
Tax policies should also encourage religious organizations to adopt more inclusive practices as stated in Kelowna’s 2040 Official Plan. For instance, institutions that adhere to discriminatory beliefs, such as opposing LGBTQ+ rights, reproductive freedoms, and dying for dignity face greater public scrutiny if they are seen as benefiting from public subsidies without contributing equitably to society.
By linking tax exemptions to adherence to human rights policies, governments can:
- Foster greater inclusivity: Encourage religious groups to become more welcoming to marginalized communities.
- Align with societal values: Reflect modern principles of equality and respect.
- Drive cultural change: Financial accountability may motivate organizations to reevaluate discriminatory doctrines and embrace broader acceptance.
Addressing Resistance and Potential Benefits
Critics may argue that taxing religious properties infringes on religious freedom. However, this policy does not target worship itself, but seeks fairness in property taxation. Taxing these properties can lead to:
- More equitable communities: All organizations contribute to public services proportionally.
- Stronger interfaith collaboration: Consolidation and shared spaces can build bridges between faiths.
- Community-focused initiatives: Freed-up resources can be redirected to charitable and social efforts.
Conclusion
Taxing religiously owned properties is not an attack on faith but a call for equitable participation in addressing societal challenges. By reallocating underutilized resources and embracing inclusivity, religious organizations can play a pivotal role in shaping vibrant, just, and sustainable communities. Such a shift not only strengthens public services but also ensures that spiritual institutions remain relevant and aligned with modern human rights principles.
Let’s look at the Data.
You can zoom on the map and hover over a dot to obtain information on each Public Worship organization.
Map Data – The data used for the map came from 2024 data from City of Kelowna tax assessments and CRA revenue. We based our mapping on religious organizations which owned property and had applied in 2020 for a 5 year exemption. There have been changes to this list since then that has not been recorded here.
- Name Public Worship Name
- Total Property Value Includes – Worship building, halls, parking lots, daycares, housing and other uses.
- Tax Exempt Property Value Includes – Worship building, halls, parking lots. EXCLUDES – daycares, housing and other uses.
- Property Tax Paid Taxes are paid on daycares, housing and other uses. Some properties pay for water.
- Total Revenue Income earned in 2023 via CRA information
- Charitable Donations – Donations from 2023 via CRA information
- Percentage Donations Given Outside of Kelowna – Donations given outside of Kelowna can reflect priorities that are not in sync with Kelowna’s stated inclusivity values and human rights values. Some of these donations are part of the organization’s worldwide missions (bibles in Africa, converting people, publishing propaganda). Organizations should be paying their property taxes first before they donate outside of Kelowna.
Help KASHA Take a Stand for Fairness and Inclusivity in Kelowna
Donate now to support this vital effort.
Together, we can create change that resonates far beyond Kelowna.
We Need Change!
1. Homeowners Face Increasing Financial Pressures and Scrutiny
Governments have imposed significant financial pressures on homeowners through various measures:
- Zoning bylaw revisions: Changes in zoning bylaws allowing for increased density or permitting rental suites can affect property values and may require homeowners to adapt their properties to comply with new regulations.
- Provincial speculation and vacancy tax: Provincial taxes aimed at vacant properties or properties owned by non-residents can increase financial burdens on homeowners who may need to prove occupancy or pay additional taxes.
- Federal Underused Housing Tax: Federal taxes targeting underutilized properties can impose financial penalties on homeowners who do not use their properties sufficiently, as defined by federal guidelines.
- Restrictions on short-term rentals: Municipal regulations limiting or imposing taxes on short-term rentals (such as Airbnb) can reduce homeowners’ income potential from their properties and restrict their ability to utilize their homes for additional income.
- Annual property tax increases: Municipalities regularly increasing property taxes can significantly raise homeowners’ annual housing costs, making it more challenging to budget and afford living expenses.
- The City of Kelowna’s exploration of revenue increase strategies, as discussed in Michelle Kam’s “Driving Municipal Revenue Study” presented on April 8, 2024, focusing on user-pay principles which increases residents paying more for what used to be free or low cost. Various fees and charges imposed by governments, such as development charges, utility fees, or administrative fees, can add to the overall cost of homeownership.
2. Permissive Tax Exemptions (PTEs) and Community Benefits:
PTEs provide significant tax breaks to community groups intended to benefit Kelowna residents. However, the allocation process has not adapted since 2006, despite demographic shifts:
- 54% of Kelowna residents identify as non-religious or secular according to the 2021 Census.
- It’s imperative to reassess PTE allocations to ensure they meet the evolving needs and demographics of our community.
- Kelowna has a housing affordability problem. Why are we subsidizing valuable land that is being underutilized by historical exemptions?
- Many organizations receiving PTE grants are inwardly focused, fail to serve Kelowna residents, and may exclude individuals based on beliefs or sexual orientation.
3. Public Worship Exemptions have NO Scrutiny. We Ask for Fair Review:
We are demanding that there should be new rules and better scrutiny for PTE assessment in the Public Worship category. We urge Kelowna city council to distinguish between private exclusive, discriminatory organizations vs community-oriented organizations in determining eligibility for these valuable tax breaks and loss of revenue. When properties are exempt from taxes, the burden of those lost taxes are placed on homeowners, renters, and businesses.
4. Proposal for Improved Application Process:
We are proposing that City Council establish a new process for scrutinizing religiously owned property tax exemptions. We are asking that city council pause the 5 year exemptions until a new process is established.
This application should include:
- An assessment of whether the organization’s values align with the equity values stated in Kelowna’s 2040 Official Plan.
- Examining the organization’s objective financial data and how funds are utilized, particularly if they are directed outside Kelowna.
- Evaluation of the tangible support these organizations provide to Kelowna residents. Are the subsidized properties available for those who are not members of the organization and who may not align with their religious beliefs?
- An examination of underutilized subsidized property and redundant usage.
A new application and scrutiny will ensure taxpayer funds support organizations that contribute equitably to Kelowna’s community.
Guide for Freedom of Religion vs. Freedom from Religion in Canada
Kelowna’s Social Values
If you are interested in helping out in any way – email us: infopte at askuskelowna.ca
We need to put pressure on City Council.
Online Petition:
Sign our petition (Kelowna residents only) at Change.org HERE
Please send an email letter to Kelowna Councilors:
Subject Line: Modernize City of Kelowna’s Permissive Tax Exemptions Policy for Religiously Owned Properties
Sample Letter:
We urge you to review Kelowna’s permissive tax exemptions (PTEs) for religiously owned properties, which result in over $1 million in lost annual revenue. In a city where 54% of residents identify as non-religious, this policy disproportionately subsidizes private organizations, some of which promote exclusionary practices. Reforming these exemptions would uphold inclusivity, equity, and fiscal responsibility. We call on the council to prioritize public interest by revisiting and modernizing PTE policies to better reflect the diverse values of Kelowna’s community.
Sincerely,
[Your Name/Organization]
Help KASHA Take a Stand for Fairness and Inclusivity in Kelowna
Donate now to support this vital effort.
Together, we can create change that resonates far beyond Kelowna.
Data Links Used in Analysis
City of Kelowna
Permissive Tax Bylaw 327, 2024 Property_tax_class_rates , PTE list2023, PTE place of Worship Application Form , PTE Re-Examination of 2006
Census Data
Tax Calculator
Public Worship Applications, Property Tax Assessments, CRA Sheets
To search City of Kelowna Tax Assessments go HERE To obtain Charity Financial Data go HERE
Click on the blue links below for more details on each organization. Please let us know if there are any mistakes.
