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Daycare taxation a sticky issue in PA

Sep 4, 2013 | 12:13 PM

When it comes to taxes, what makes one daycare different from another?

That was the center of discussion for Prince Albert's Executive Committee on Tuesday night.

A variety of councillors shared concerns about a proposed partial tax abatement for Family Futures Inc., a daycare in the city.

The abatement came as a counter to Family Futures’ request for a tax exemption similar to other non-profits in the community.

The city contends that doesn’t fit with the current practice for municipal and school taxation for daycares in the city.

However, a few councillors oppose the city’s proposed abatement is also inconsistent.

While it takes the usual approach for the city’s daycares, a final percentage is used to calculate how much tax relief is required. This percentage is different from other daycares and reflects “the direct benefit to City of Prince Albert residents,” according to the city’s recommendation.

“An adjustment was provided previously, based on some ratio of kids inside the city versus kids outside the city,” said Joe Day with Financial Services.

According to Coun. Martin Ring, this may not be fair.

“I believe there are families that are using other daycares in our city that are getting a tax abatement that are coming from outside the city as well.”

This issue has come up in the past. Coun. Lee Atkinson pointed out that when it came up, the city also included information on how Family Futures isn’t exclusively a daycare. This factored into how they were taxed, but was not brought up this year.

The committee voted against the city’s proposal for Family Futures to pay about $2,400 less in taxes.

It agreed to not move forward on making a decision until they have more information.

claskowski@panow.com

On Twitter: @chelsealaskowsk