Permissive Tax Exemption

Local governments have the authority to exempt eligible properties from property taxation for a specified period. A permissive tax exemption can be granted to an eligible property through a bylaw at the discretion of the Council.

Permissive tax exemptions are granted at Council’s discretion, by bylaw, under Sections 224-227 of the Community Charter. There is no obligation to grant an exemption, and Council may set conditions and limits, or revoke exemptions.

Applications must be received by May 31st for consideration for the following tax year. Please complete your application online by clicking the button below.

Permissive Tax Exemption Application Form

On December 8, 2025 Council adopted a Permissive Tax Exemption Policy that guides the evaluation of permissive property tax exemption applications under the Community Charter by recognizing the contributions of not-for-profit, charitable, and philanthropic organizations to the District’s well-being, and to establish a transparent process for granting exemptions to eligible groups that enhance community services, environmental stewardship, and heritage preservation.

The policy applies to all applications for permissive tax exemptions for land and/or improvements within the District of Highlands.

Eligibility Criteria

To be eligible, the applicant should:

Be the registered owner of the property or the tenant under a lease required to pay taxes directly to the District .
Be a registered charity or non-profit society.
Ensure services and activities are inclusive and available to all Highlands residents.
Use the property primarily for activities that benefit Highlands residents, such as:
- Public or recreation facilities
- Social, cultural, or arts programs
- Services for youth, seniors, or special needs groups
- Environmental stewardship or heritage preservation
- Programs delivered in partnership with the District
Comply with all applicable municipal policies, plans, bylaws, and regulations (e.g., business licencing, zoning, etc.).
Be in good standing with the Canada Revenue Agency or BC Registry Services (where applicable).

Special consideration or priority may be given to organizations that:

Advance environmental stewardship (e.g., ecological restoration, conservation, education)
Preserve and promote heritage (e.g., historic sites, cultural programs)
Deliver services in partnership with the District

Application Requirements

Applicants must submit a completed application form (prescribed by the District) which includes a full description of the organization, its purpose, programs, and community benefit and if applicable:

Documentation highlighting the portion of land/improvements used for eligible services
Proof of ownership or lease agreement

Evidence of good standing as a charity or society.

To provide evidence of good standing for a charity or non-profit, you should supply documentation that demonstrates your organization is officially registered and compliant with relevant authorities. Here’s what is typically accepted:

For Registered Charities - Canada Revenue Agency (CRA):

A copy of your charity’s registration letter or certificate from the CRA.
A recent printout or screenshot from the CRA’s online “List of Charities” showing your organization’s active status.
Your charity registration number (BN/Registration Number).

For Non-Profit Societies - BC Registry Services:

A current Certificate of Good Standing from BC Registry Services (can be ordered online).
A recent annual report filing confirmation or society status printout from the BC Societies online registry.
Your society incorporation number.

Audited financial statements or equivalent
Evidence of seeking funding from other sources
Any other information requested by the District

Applications must be received by May 31st for consideration for the following tax year. Incomplete applications will not be considered unless exceptional circumstances are demonstrated. Late applications may be considered only if eligibility criteria are met and before the bylaw is presented to Council.

Application Process

Existing recipients will be notified by email of their final exemption year.
Applications must be submitted by May 31^st of each year using the prescribed form.
Finance staff will review applications for compliance and present a summary to Council for decision.
Council will consider new applications annually.
In accordance with the Community Charter, permissive tax exemption bylaws will be the subject of public notice and be adopted on or before October 31^stof the effective year.

Review Process

Conditions

Council may:

Impose conditions, such as covenants restricting use of the property, agreements to continue specific services or programs, or requirements related to public access.
Limit the total value of exemptions granted in any year.
Designate only a portion of the land and/or improvements as exempted where the applicant already receives a grant-in-aid from the municipality.
Require, by agreement, an exempted organization to immediately notify the District of any substantial increases in the organization’s revenue or anticipated revenue (e.g., due to a large operating grant from a senior government, and changes in eligibility, use, or legal description of the property).

Extent of Exemption

Exemptions are based on the principal use of the property, not the organization’s overall activities.
Only the portion of the property used for eligible service delivery will be exempted.
Exemptions may apply to all or part of the taxable assessed value of land, improvements, or both.
Exemptions cover municipal and other jurisdictional property taxes, but do not apply to parcel taxes or user fees.

Duration of Exemption

Penalties