Golf club tax exemption may be formalized through bylaw

By Sean Feagan, Local Journalism Initiative Reporter

Strathmore town council has moved towards formalizing an arrangement to make the Strathmore Golf Club exempt from municipal taxes.

During its regular meeting on Sept. 16, town council directed administration to prepare a bylaw to exempt the Strathmore Golf Club, a not-for-profit organization, from all municipal property taxes. The motion passed 6-1, with Councillor Lorraine Bauer voting in opposition.

If passed, the bylaw would formalize an exemption, but such an arrangement is nothing new. Between 2001 and 2004, town council passed motions exempting the club from property taxes and continued this practice through precedent from 2005 to 2019.

The request to formalize the arrangement was made by the Strathmore Golf Club after it subdivided an approximately 10-acre parcel of its property to possibly sell for future development. This parcel was subsequently assessed by the town, and a tax notice was sent to the club.

The tax bill for this parcel was $8,828, of which about 68 per cent ($5,967) is municipal, with the majority of the remainder allocated to provincial education, and a small amount to Wheatland Housing. The taxes for the remainder of the club’s property, for education and Wheatland Housing only, equal $19,886.

Section 364 of the provincial Municipal Government Act provides for a municipality to be able to exempt a non-profit organization from taxation through a bylaw.

The club has provided the town with financial statements and an application indicating they are operating under the same structure as when the agreement was first drafted, said Mel Tiede, the town’s director of corporate services, during the meeting.

A municipality supporting its golf course, unless they are privately-owned and operated as a business, is not unique to Strathmore, said Doug Lagore, the town’s acting chief administrative officer. Besides tax exemption, other examples include support through operating grants or providing services in-kind. An operating grant was provided by the town to the Strathmore Golf Club between 1996 and 2000.

Tiede said he was not aware of any other not-for-profit organization in town exempted from municipal property taxes. However, Councillor Melanie Corbiell said other organizations are supported in different ways, such as how the town funds the arena and aquatic centre.

Councillor Denise Peterson voiced support for the motion in light of the club’s contribution to the town’s tourism, economic development and recreational offerings (including winter cross country skiing). The club also provides a $99 youth summer membership and a membership program for less-fortunate youth, said Greg Lochhead, club vice-president.

The course has been active since reopening in early May, said Lochhead. “Given the fact that people can’t travel like they used to, it has been extremely busy.”