Yellowknife Day Care Association 'disappointed' it didn't get city tax exemption

The City of Yellowknife may look into revising its criteria on what makes an organization eligible for property tax exemptions.

On Monday, an application submitted by the Yellowknife Day Care Association was denied when the majority of city councillors agreed it did not fit the city's criteria.

The property tax exemption could have saved the association $25,000 a year, city documents say.

According to the city's policy, the applicant must be a non-profit organization that serves a municipal purpose through social and community services, or arts and cultural activities.

The Yellowknife Day Care Association, which operates out of a new facility on 52Street, has nine classrooms and houses about 104 children, according to its website.

In an emailed statement to CBC, association president Ryan Fequet said they're "disappointed" the city didn't approve its request for a tax exemption.

"Especially considering we are a not-for-profit and registered charity, and this savings would have helped us keep fees as low as possible for the member families," Fequet said.

While the association fulfils the criteria of being a non-profit organization, city councillors questioned whether or not it provides a municipal service to the community.

Some councillors also felt if the property tax exemption was approved, it wouldn't be fair to other daycare providers.

"It was argued by administration and some councillors that it should entirely be a territorial responsibility to give financial subsidies or benefits to the daycare," Coun. Shauna Morgan told CBC on Tuesday.

Morgan voted in favour of approving the tax exemption for the association.

"They do provide an important service to the community that in my mind would fit under the category of supporting municipal purposes," she said.

Councillors also discussed the need forreviewing its tax exemption policy in the future.

"It's a fairly new policy, but we realize now some of the wording in it may not be clear," Morgan said."When people go to apply, people should have a sense of whether or not they're [eligible]."