WHEREAS for profit businesses located within hospital premises who enjoyed benefit from the hospital exempt status in 2010 continue to do so until 2015 as established by the transition provisions described in the Budget Measures Implementation Act, 2011; AND WHEREAS the for profit businesses at these locations consume the services provided by host municipalities without making a contribution to local government: THEREFORE BE IT RESOLVED that the provincial government amend the transition provisions from the Budget Measures Implementation Act, 2011, to render taxable any for-profit business located on land or within properties held by a health authority, effective as of 2012.
Ministry of Finance As noted in the resolution, the Province addressed the issue of property tax disparities with respect to businesses located on health authority and university properties, compared to similar businesses located in privately owned properties in Budget 2011. With those changes, new businesses located on health authority and university properties immediately became taxable. But businesses located on such properties which were exempted from taxation in the 2010 tax year continue to be exempt through the 2015 tax year. The only exception is where there is a change in the occupier of the exempted property. For example, if an exempt business shuts down and a new for-profit business operation commences in the same area, the new business will be taxable. The resolution requests a shortening of the five-year transition period for existing businesses on health authority properties. Shortening the length of the transition period so soon after the original decision would be confusing and potentially disruptive to existing tenancy agreements.