Section 15(q) of the Local Government Act states that in electoral areas, properties (lands and improvements) owned and used exclusively by a local non-profit organization for "activities that are of demonstrable benefit to all members of the community" are exempt from taxation. In municipalities, which are subject to the terms of the Community Charter, these properties are not automatically exempt from taxation. Under section 224(2)(a) of the Charter, however, Municipal councils may provide permissive tax exemptions each year to non-profit organizations that use their properties for purposes that are directly related to the organizations' purposes. The same properties would be exempted from taxes levied for regional district services that are provided to the properties.
It is important to note that tax exemptions for non-profit groups, while not automatic in municipalities, are provided each year as permissive exemptions by all municipal councils, including the Councils of Salmon Arm, Sicamous, Revelstoke, and Golden. It is reasonable to assume that local non-profit groups in Blind Bay and Sorrento that are exempted from property taxes today would be provided permissive tax exemptions in a future municipality.
Non-profit organizations benefit in electoral areas and municipalities from local government grants. In the Sorrento-Blind Bay Incorporation Study, the budget projections for the incorporation option assume that a new municipality would provide the same amount of local government grants-in-aid as are provided now under the Electoral Area C Grants-in-Aid service.