REGINA — The Saskatchewan Court of Appeal has affirmed an earlier court decision that said a church in Prince Albert could not lose its property tax exemption over bake sales.The case concerned Embassy Church Inc., which owns a property in the City of Prince Albert. The main building is used for several purposes, including a church, a registered independent school, a day care, space leased to third parties, and areas that can be rented on a one-time basis by members of the public for social or business functions. It also contains a second stand-alone building with a convenience store. Historically, the bulk of the property had been exempted from property taxation. However, for the 2023 assessment year, an assessor determined that the school portion of the property was tax-exempt, but the remainder was not. The property was valued at $2,847,700. Embassy agreed that the portion of the property consisting of the stand-alone convenience store and the space leased to third parties on a long-term basis should be taxable and also agreed with the assessor’s determination regarding the school but otherwise disputed the denial of an exemption for the rest of the property, which it said was used for public worship..The Embassy appealed the assessment to the City’s Board of Revision, but was denied on July 5, 2023. Upon further appeal to the Assessment Appeals Committee of the Saskatchewan Municipal Board, Embassy’s appeal was allowed in part and a further exemption, as a place of worship, was ordered for the disputed portions of the property, except for the portion occupied by the day care.Both the city and Embassy appealed to the Sask Court of Appeal to resolve how to interpret the cities Act and its regulations when places of worship are used for multiple purposes.On Thursday, the court recognized that the exemption exists to relieve from property tax those portions of buildings owned by religious organizations that are principally used as places of public worship, recognizing the public benefit they provide. The use need not be exclusive; it must be the principal use.Legal counsel for Embassy Church, Philip Fourie and Carla Dombowsky of Oakbridge Law, welcomed the decision, which recognized that a "place of public worship" is identified as one where people assemble for religious, spiritual, or analogous purposes— not by every incidental thing that happens within its walls.."Why this matters, in plain terms: the court rejected the city's position that churches lose their tax exemption if they use space for secondary fundraising, like a church-basement bake sale, to support their primary charitable mission," the lawyers stated in a press release."The decision reinforces the constitutional place of religious assembly in civic life and recognizes that tax exemptions for places of worship are not favours, but instruments of public policy that advance community well-being. Churches across Canada, especially in Saskatchewan, can take confidence: principal worship spaces remain protected, even in multi-use buildings, because the exemption serves the public good," the lawyers explained.In the joint news release with legal counsel, Pastor Megan Mayer of Embassy Church welcomed the decision."Embassy Church is grateful to the Court for its careful reasons, to our counsel for steadfast advocacy, and to our community for unwavering support. We will continue to open our doors as a place of public worship — for prayer, teaching, service, and hope — and to serve the people of Prince Albert," she said.
