Nanaimo Council Orders Review of Tax Exemption Policy

Nanaimo city council has ordered a review of its permissive-tax exemption policy, directing municipal staff to complete the work within six months after concerns emerged about which organizations qualify for property tax relief. Council unanimously approved the motion introduced by Coun. Ben Geselbracht at its Oct. 5 meeting, according to the Nanaimo Bulletin.

The City of Nanaimo currently has 174 properties applying for tax exemptions in 2027, with the combined value approaching $2.8 million. The review is intended to determine whether the policy's eligibility requirements align with the municipality's priorities, following questions about the treatment of two nonprofit organizations.

Geselbracht said the city provides more than $2.7 million in permissive-tax exemptions annually and argued that some eligibility provisions may be too broad. He raised the issue through a notice of motion at the Sept. 21 council meeting.

"We give out more than $2.7 million in permissive tax exemptions (each year), and there has been a few cases where I feel that our policies are a little bit broad," Geselbracht said.

The discussion followed concerns about the Vancouver Island Real Estate Board, a nonprofit organization that supports and regulates the real estate profession, being eligible to apply for an exemption exceeding $27,000 in 2027. Meanwhile, Tillicum Lelum Aboriginal Society's Sxwutculi Lelum, also known as Hummingbird House, initially did not qualify despite providing short-term housing for Indigenous women in need.

Geselbracht said a policy review could clarify the city's criteria and ensure exemptions remain consistent with municipal objectives.

"I don’t want to be overrun with applications, and the policy might not be aligned with our goals so I think it’s worthwhile to review it," Geselbracht said.

At the Sept. 21 meeting, Sxwutculi Lelum was ultimately deemed eligible to apply after the municipality entered into a housing agreement with the society. That agreement allowed the organization to meet the requirements for a tax exemption.

The eligibility discussion prompted Geselbracht to call for a broader examination of the rules governing which properties and organizations can receive relief from municipal property taxes.

He clarified that his proposal was not necessarily intended to challenge the real estate board's eligibility, but to assess whether the overall policy reflects the city's priorities.

"I’m not in disagreement that the VIREB is on there, but I think it’s worthwhile to look at the policy and make sure it’s aligning with our priorities as a city," Geselbracht said at the Sept. 21 meeting.

The review is scheduled to take place over the next six months. The municipality's current exemption applications for 2027 cover 174 properties and represent nearly $2.8 million in potential tax exemptions, according to the Nanaimo Bulletin.