Crow's Theatre: Options to Address Outstanding Taxes Relating to the Period of Construction on an Otherwise Exempt Entity under the Assessment Act - by Councillor Paula Fletcher, seconded by Councillor Paul Ainslie

In 2016, Crow's Theatre moved their location to 345 and 347 Carlaw Avenue and underwent a period of construction prior to opening its doors to the public in 2017. Section 3 of the Assessment Act provides for a property tax exemption for small theatres for which Crow's Theatre is eligible, however, the Municipal Property Assessment Corporation (MPAC) has advised that they are not eligible for this exemption during the period of construction as it was not being used as a theatre during this time. There are two assessment roll numbers for Crow's Theatre. The assessment roll number for 347 Carlaw Avenue is currently exempt, and the assessment roll for 345 Carlaw Avenue is comprised of an exempt and taxable portion of assessment. The taxable assessment at 345 Carlaw Avenue is for the restaurant at this location. Both of these assessment rolls have outstanding taxes pertaining to the 2016 taxation year, during the construction period at this property. Crow's Theatre was under the assumption that the exemption for the theatre would also apply during the time that these properties were under construction. Currently, there is a combined total of $70,363.71 of outstanding taxes; $24,542.70 for 347 Carlaw Avenue and $45,821.01 for 345 Carlaw Avenue. A portion of the outstanding taxes on 345 Carlaw Avenue may apply to the restaurant at this location. Crow's Theatre is in a difficult position for the 2016 taxation year, as they had assumed that they were exempt from taxation for all space at both of these properties, other than the restaurant. These arrears are causing hardship for the theatre, and this situation may jeopardize their financial viability.