Date: 28 Feb 2024

Prince George City Council has initiated a significant proposal aimed at closing a tax loophole that benefits daycare centres operating within school premises, which have been exempt from paying property taxes.

The council’s draft resolution, directed to the North Central Local Government Association, seeks intervention from the Minister of Education and Child Care to establish a mechanism allowing local governments to levy property taxes on these childcare facilities. This move comes in response to a surge in daycare operations within schools, spurred by changes to the School Act and the ongoing need to increase childcare spaces.

• Proposal to close tax loophole for school-based daycare centres.
• Plan to request a tax collection mechanism from the Minister of Education and Child Care.
• Response to the increasing number of daycare centres in schools.

The council’s actions aim to ensure that while addressing the childcare space shortage, daycare businesses contribute to municipal finances. The resolution also emphasizes the importance of balancing the need for childcare spaces with fiscal responsibilities, avoiding sudden financial burdens on these facilities.

Prince George’s initiative reflects a broader challenge of balancing public service provision with equitable tax collection, setting a precedent for discussions on municipal finance and educational infrastructure use.