B.C. court denies property tax exemption for $12.9M island owned by religious group
CTV
The British Columbia Supreme Court has rejected an appeal from a religious group that sought a property tax exemption on its 31-acre island near Swartz Bay, B.C., arguing the island is a "place of public worship."
The British Columbia Supreme Court has rejected an appeal from a religious group that sought a property tax exemption on its 31-acre island near Swartz Bay, B.C., arguing the island is a "place of public worship."
The Matsuri Foundation of Canada, a registered charity dedicated to advancing the Shinto religion, was denied the exemption on its $12.9-million Knapp Island property by the Property Assessment Appeal Board in March 2023.
Because Knapp Island is not within an incorporated municipality, it falls under the Rural Area Taxation Act, which allows for property tax exemption for "every place of public worship."
The court sided with the property assessment board in finding that the Matsuri foundation had not shown that the island was open and accessible to the public, and therefore its principle use was not for public worship.
"The board found that to the extent that Knapp Island was used for worship, that worship was private," B.C. Supreme Court Justice Francesca Marzari wrote in her decision, noting the island can only be reached using one of Matsuri's own boats or a private watercraft.
The Matsuri foundation argued the island was nevertheless entitled to the exemption on "fairness and equity grounds," citing similar tax-exempt properties in the region.
The property assessment board reviewed 19 other properties in the B.C. Gulf Islands that were given either full or partial tax exemptions on religious grounds. However, the board ruled those properties all differed from Knapp Island in their size, population and public access by ferries and roads.
