The Davidson Golf Course board of executives and the RM of Willner council have agreed to a settlement for the municipal property taxes paid by the course to the RM.
Kirk Johnson, board member with the Davidson Golf Course, said the two sides reached an agreement a few weeks ago that will see the course pay $3,000 in annual municipal taxes until 2016 in addition to the annual school tax of approximately $6,600. He said the course settled the 2012 taxes two weeks ago and the deal with the RM will cover the next four years on top of that.
The course was facing an annual municipal tax bill from the RM for over $10,000 on top of the school tax portion bringing the course’s annual tax bill to $17,458, which Johnson said would have killed the course.
“I don’t think we could afford to operate and pay $17,000,” said Johnson. “That would probably have finished us. It wouldn’t have done us much good. The deal we worked out between the RM and us I think is a pretty good deal. It’s something that we both could live with.”
Len Palmer, Reeve of the RM of Willner, said the settlement is a “fair deal for everyone” involved and he is glad that they have come to an agreement. He said it is unfortunate that it took so long to get this done, but he is still happy that everyone was able to come to an agreement in the end.
The municipal tax issue arose in 2011 when the RM informed the golf course board they had decided to stop abating the money owed by the course to the RM starting with the 2012 annual taxes. In lieu of the tax abatement, the RM said they would provide the course with a $4,000 recreation grant instead.
Palmer said the RM wanted to stop abating taxes and go to a straight grant system because it is a “better and safer” way to operate. He said this decision was made due to the way taxes have been increasing over the last few years.
The course has been previously receiving abatement on municipal taxes owed to the RM from approximately 2006 to 2011.
Johnson said the taxes are so high due to the provincial government zoning golf courses in RMs as commercial property, which are taxed at 100 per cent of their value.
“Ours is not a commercial (course),” he said. “Ours is kind a non-profit organization that provides a service and recreation. We’re trying to keep the doors open and anything we do get or make we invest back into the course. It’s not like it’s a business.”
Johnson said the course used to receive abatement on municipal taxes from the RM because the course was forced to pay a school tax, which came to $6,753 for 2012, after the Davidson School Division amalgamated with the Sun West School Division. Before the amalgamation, the course also received abatement on education taxes as well.
“We’re a little course just trying to provide a service to the community,” he said, noting the purpose here was just to pay reasonable taxes. “We just want to try and make a go of it and get along with everybody and come up with some kind of agreement and we did.”