The society that operates Top Hat Bingo in Medicine Hat on behalf of 44 non-profit groups in the city has received a one-year municipal tax cancellation for 2020 following a council decision on Monday night. -- NEWS PHOTO COLLIN GALLANT
cgallant@medicinehatnews.com@CollinGallant
City council has cancelled the municipal tax bill for the Cypress Bingo Society – a consortium of non-profit groups in the city that operate Top Hat Bingo.
The measure passed city council vote unanimously on Monday night after the group petitioned administrators for relief.
They argued that since the group had cancelled its liquor licence, Medicine Hat should follow other cities’ policy of halting tax bills for the fundraising entity.
Council approved a one-time cancellation of the municipal portion of the society’s tax bill for 2020 on the 19,000-square-foot parlour at 602 Clay St., amounting to $15,366.
That amount will be made up by the general tax base, though Coun. Julie Friesen said the funds should be considered part of City Hall’s package to support citizens, businesses and charity groups during the COVID-19 pandemic.
“I see it as part of the initiative,” she said. “These are community groups that depend on bingos and casino fundraising. That (revenue) is down.”
Coun. Robert Dumanowski, the chair of council’s corporate services committee, said it’s important for Medicine Hat to consider what other municipalities are doing.
This year the City of Calgary approved similar tax cancellations for bingo halls that do not serve liquor under provincial rules that allow tax breaks for community organizations.
Correspondence between the society and the city’s assessment department states the liquor revenue has decreased to the point where a tax cancellation would be preferable.
“There are a lot of sensitivities around council’s ability to decide when and where to cancel taxes,” said Dumanowski.
“They support community groups throughout the city that are under stress right now.”
Also speaking in favour was Coun. Brian Varga.
“It’s important in tough times,” he said.
Under Alberta gaming regulations a portion of profits from bingo halls are set aside for qualified registered charities and the operator receives the rest.
In Top Hat’s case, the operator is the society, with the structure thereby bolstering the income of 44 local groups.
