Every penny counts!

When you’ve double counted five million dollars and face a bit of setback to your financial plans, the idea of shaking the couch cushions for a little loose change seems sensible.

While there’s no couch to shake at the Museum of Northern BC, there is a gift shop and City Council has decided that the taxes generated by that retail outlet in the Museum should be delivering a dividend to the city.

Over the years, the city has not collected revenues from the Gift Shop which has had a tax exempt status, that all changed with three readings to the tax exempt bylaw.

The Monday Daily News had details on that change as well as the history of city’s financial involvement with the Museum Society.

MUSEUM ABOUT TO START PAYING CITY SOME TAXES
Tax exempt status for gift shop is withdrawn
By Leanne Ritchie
The Daily News
Monday October 15, 2007
Page three

Only those parts of the Museum of Northern B.C. that do not generate any profit or compete with other local businesses will be exempt from municipal taxes this year.

The city gave the first three readings to its tax exemption bylaw on Tuesday, but agreed to amend the bylaw to ensure the museum gift shop would not be getting a free ride.

“When we went through this last year, there were certain questions that arose about certain exemptions, that not the whole of the property fit the tax exemption,” said Coun. Sheila Gordon-Payne. “I am talking about the museum and I am wondering if we are continuing to give the whole building an exemption or if we have corrected that process.”

Businesses competing with the gift shop in tourist and jewelry items have complained in past years that the museum had an unfair advantage, and asked council to level the playing field. Building owners who rent retail space have also complained.

Because of time constraints to pass the 2007 bylaw, staff had intended to continue to give the entire building the exemption, however council passed an amendment to the property, divvying it up between the taxable and the untaxable – the portion that houses the museum itself.

‘The rest of that building, including the part that is rented out, is in direct competition with folks around town who rent out space and those folks pay taxes,” said Coun. Tony Briglio.

Gordon-Payne asked that last year the list was prepared by staff who were relatively new, however council did make a commitment to correct the situation this year.

Briglio added that the city in the past gave the Royal Canadian Legion a tax exemption for its building, however it charged taxes on the section of the building that operated as a bar/pub

“We vehemently held to that argument – that they were in competition with others in the city,” he said. “It is incumbent on us to charge any part of the building that is in competition with other businesses the equivalent of the taxes charged to any other citizen of Prince Rupert.”

The Chatham Complex, which includes pace formerly used as home of the Tsimshian Tribal Council, the site of Prince Rupert and Port Edward Economic Development Commission and Northwest Community College, was purchased by the Museum Society in 2004 with a $2.5 million loan from the City of Prince Rupert.

At the time, the city was providing the museum with $192,000 in rent payments and council decided it would be better to buy the building. The loan arrangement with the city stated the city would put the rent payments towards the loan and the Museum Society would pay back the balance of $2.5 million loan within five years. According to the city’s 2006 financials, in 2005, the city paid $82,000 toward the principal of the $2.5 million loan on behalf of the museum.