With the Municipal Property Assessment Corporation (MPAC) questioning the tax-exempt status of municipally-owned medical centres, the town is making moves to ensure local facilities remain tax free.
In a report presented at the March 5 council meeting, Minto treasurer Gordon Duff explained that at the time of construction of the Clifford Medical Centre in 2006, town staff consulted with officials from Wellington County, the Ministry of Municipal Affairs and neighboring municipalities about how to have the space properly designated. As a result, bylaws were passed designating the medical centre as a “municipal capital facility,” under section 110 of the Municipal Act, related to the provision of social and health services. A lease was signed with the County of Wellington, which owns the building and, in turn, leases were signed with the Minto-Mapleton Family Health Team and doctors who provide medical services.
Duff reported that in 2012, MPAC took issue with the tax-exempt status of medical centres located in Mapleton and Wellington North.
“Unfortunately the Municipal Property Assessment Corporation has come along and questioned some of these arrangements and says that, no, they’re really commercial and they shouldn’t be tax exempt,” said Duff.
After consulting with the county’s property tax analyst, staff decided, “it would be prudent to amend certain bylaws and agreements in the Town of Minto,” Duff explained in his report.
At Duff’s recommendation, council agreed to explicitly declare the medical centre exempt from all three levels of taxation and made the action retroactive to Sept. 6, 2001. Leases with the family health team and doctors using the centre will be amended to reflect the declaration.
Duff noted the action is a matter of re-enforcing the existing arrangement because, “In our archives we already have a bylaw on the books that I think said exactly that in any reasonable person’s mind.”
Duff noted there would be no financial impact to the town if no action is taken by MPAC. However, if MPAC decides to reassess the property, “there is a risk of tax obligations being payable.”
