Coun. Dennis Ogrodnick speaks during a February city council meeting. (Alison Sandstrom/paNOW Staff)

By Alison Sandstrom

Considering care

Council approves tax break for personal care homes

Jul 6, 2020 | 4:27 PM

Prince Albert city council has upheld a tax break for privately owned personal care homes.

The city created a special sub-class for the businesses in 2018 after the provincial government reclassified them as commercial properties, as opposed to residential.

The resulting tax relief implemented by the city has meant the homes pay taxes at an equivalent rate to residential properties.

The abatement for Prince Albert’s 15 privately-owned personal care homes will see the city give up $36,016 in tax revenue in 2020.

While some councillors argued the facilities should be taxed like any other businesses, most councillors and Mayor Greg Dionne said they provide a vital service for the community and needed support.

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“If we did not have private seniors’ care homes, they’d be on the street,” Dionne told council. “There is no way the government of the day is going to put enough money in to supply seniors’ housing and that’s our problem.”

Coun. Dennis Ogrodnick also spoke in strong support of the abatement telling council he was glad they had created it in 2018.

“We said that a care home is not equivalent to McDonalds,” he said, emphasizing the tax relief was about protecting vulnerable people.

Meanwhile Coun. Terra Lennox-Zepp pointed to the fact that there was no obligation on the part of personal care homes to pass the savings along to their residents.

“Perhaps we should think about the tax rates for seniors who are not in care homes, perhaps seniors who are in their own homes, because we have to make up the money somewhere eventually,” she said.

Echoing her remarks, Coun. Evert Botha told council private personal care homes operate like businesses and should be taxes as such.

“When you read some of the descriptions of some of the suites of some of the providers within our communities, when it talks about champagne and luxurious bubbles in the spa – that’s commercial sales,” he said.

Coun. Zurakowski said he didn’t see why making a profit should be a bad thing and furthermore most operators he knew weren’t making large amounts of money anyway.

“Why is it so bad if it fills a need,” he questioned. “Why is it a bad thing if they can afford to give the seniors living there a bottle of or wine or a glass of wine now and then.”

Councillors Ogrodnick, Zurakowski, Don Cody, Blake Edwards, Dennis Nowoselsky and the Mayor voted in favour of the abatement, Botha, Charlene Miller and Lennox-Zepp were opposed.

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alison.sandstrom@jpbg.ca

On Twitter: @alisandstrom