Skip to content
Join our Newsletter

B.C. private school tax fight looms

School association sounds alarm bells
gv_20130910_biv0117_309109975
West Vancouver’s St. Anthony’s is one of B.C.’s independent schools facing municipal property tax levies

Independent schools are preparing to battle B.C. municipalities that want to impose property taxes on their holdings for the first time in five decades.

Peter Froese, executive director of the Federation of Independent School Associations of B.C. (FISA-BC), says it’s a struggle his 300 members can’t afford to lose.

“This isn’t something we will quietly let happen,” he said in an interview. “It’s a serious fight for us.”

Although only three municipalities have signalled an interest in taxing independent schools thus far, the federation worries that others would quickly follow suit if those three – West Vancouver, Victoria and Nelson – are successful.

FISA-BC is asking the Liberal government to change legislation or regulations to preserve the independent schools’ property tax exemption. That exemption has existed since 1957 and covers the land beneath school buildings as well as auxiliary property such as playing fields, playgrounds and parking lots.

A recent change in a legal interpretation of the Community Charter by the BC Assessment Authority has created an opening for municipalities to impose a property tax on the auxiliary properties.

Marc Dalton, parliamentary secretary for the independent school sector, said he expects his government will accede to FISA-BC’s request. While acknowledging that some municipalities are having financial difficulties and searching for new revenue sources, Dalton said property taxes for independent schools would be too much for some to bear and could force them to close.

“As a government, we believe in choice in education and a strong public and independent school system,” Dalton said in an interview. “This has the potential to undermine that in a really significant way so it is a concern.”

Some taxpayers have argued that independent schools should pay municipal property taxes even though public schools have an exemption. After all, they say, independent schools charge tuition fees and appear relatively wealthy compared with public schools.

Diane McNally, a Victoria public school trustee who supports her municipality’s position on the issue, said independent schools already receive public funds to cover a portion of their operating costs. Giving them a tax break as well, she said, “is compounding that wrong.”

But Froese disputes the view that independent schools are all wealthy and exclusive, noting that only 17% of FISA members are university-preparatory schools that charge hefty fees and accept only top students. Among the remaining 83% are schools that struggle to make ends meet, while still trying to keep tuition fees affordable.

Furthermore, he argued that the tax regime should recognize that independent schools serve the public good.

“We’re preparing students to function in a democratic and pluralistic society, just like public schools are,” he added.

As part of its battle, FISA-BC is appealing the BC Assessment Authority’s interpretation of the law and expects the Property Assessment Appeal Board will hear the case this fall. The FISA appeal is focusing on two representative schools: Mulgrave and St. Anthony’s in West Vancouver.

West Vancouver was the first municipality to open the issue, advising FISA-BC last October that it intended to begin taxing independent schools in 2013 expecting to raise a total of $228,000 annually in new revenue.

An outcry from the schools’ communities prompted a one-year delay, but Froese said the issue is expected to be back before council this fall.

In January, the City of Victoria advised FISA that it also wanted to collect property tax from independent schools but it would phase the tax in over 10 years. The City of Nelson followed suit.

“It’s the thin edge of the wedge,” Froese said.

The auxiliary land targeted for taxation is essential for any school, he said, noting that no B.C. municipality would grant a building permit for a new independent school that lacked plans for a playground and a parking lot.