Last Monday, the Quebec Municipal Commission held a tribunal to revise its June 2013 decision to revoke the tax-exempt status of LaSalle Legion Branch 212.
If it stands, last year’s decision means that the LaSalle Legion owes the City of Montreal $48,000 in tax revenue for the last two years plus almost $30,000 a year going forward. Montreal sent law intern Aicha Ali Taiga to oppose the Legion’s request.
“This commission does not have the power to undo the decision it made last year,” said Ali Taiga. “If the Legion wants to appeal the decision, it has to do so through Quebec Superior Court.”
Ali Taiga claimed that four previous cases back up her contention; three were written by Commissioner Léonard Serafini, who was the judge hearing Monday’s case.
During the court case, Legion officials Fred and Bob Jennings and retired policeman member Gilbert Archambault outlined all the ways that LaSalle Legion 212 supports the community plus 316 members, including veterans in the St. Anne hospital. Commemorations to the Battle of the Atlantic and other World War II events, parade participation, dinners, dart leagues and a card club help limit the isolation of veterans and local seniors, they said.
The Legion also donates funds to various foundations and its facilities are used for no charge by several local community groups, including the Knights of Columbus, the Parent Family Association, the Mana Food Bank and the Hope Foundation.
Commissioner Serafini explained that none of the items considered in the previous hearing mattered because they were already part of the evidence considered by administrative judge Jacques Lareau last year. In that hearing, Lareau estimated that only 25% of the Legion’s activities qualified for tax-exempt status.
Since then, the Legion has made new partnerships with several other community groups. The Catholic Charity Association, for example, will be using Legion facilities three full days a week in July and August. A Cancer for Kids charity used the Legion for a full day last week. There are also community luncheons frequently, with more than forty people using the Legion last week. Beginning next fall, the Legion plans to offer hot meals for only $7 every Thursday. A new lending library for books and films is now in operation and the Legion has set up separate reading and movie discussion groups too. A Radio Club now meets at the Legion. Arts and crafts activities and expositions are being organized for the coming months.
“We’ve been in LaSalle for more than sixty years,” said Archambeault. “If you close us down, not only will our members suffer, but all the other associations won’t have anywhere to go either.”
Commissioner Serafini wished the group luck with their activities and said his decision will be rendered in August or September.
Note: This story also appeared on the front page of the City Edition of the Suburban today.
May 8, 2014: LaSalle Legion Branch 212 Receives $47,000 Tax Bill
The LaSalle Branch 212 on Bouvier Street received a property tax bill from the City of Montreal for $47,000 last Monday morning.
They gave us a credit for the taxes we already paid,” said Fred Jennings, current president of the branch. “We paid $3,700 for 2013 and $3,834 for 2014. Why are they sending a bill for our taxes when we’re still waiting for a hearing about our appeal?”
The bill dates from June 28, 2013, when Legion 212 had its tax exempt status removed by administrative judge Jacques Lareau from Quebec’s municipal commission. At the end of 2013, the Legion got a letter making the decision retroactive to the beginning of the year, just as it began appealing the initial decision.
No date for the Commission to hear the appeal has been set.
The demand is coming at a difficult time for the organization. For the first time since its inception, it has a mortgage on its building due to a $65,000 roof repair last year.
Legion member Joseph Pugliese brought the issue to the LaSalle borough council meeting Monday evening. Mayor Manon Barbe mentioned that defending its role as a non-profit is a necessary process, but she promised that the borough will assist the Legion in its efforts to prove its continued services to the community.
Jennings says that the Legion lost their initial case between their financial statements did not make donations to charitable organizations such as the Poppy Fund clear. Their appeal documents corrected that deficiency in addition to listing the community organizations that use Legion resources for free.
He’s confident that the organization will be able to overturn the commission judge decision and he’s hoping that the City of Montreal will agree to defer the new property taxes until that process has concluded.
November 6, 2013: Legion Branch 212 May Now Owe Property Taxes
The LaSalle Branch 212 on Bouvier Street is facing the possibility of paying property taxes this year for the first time since 2003.
In a decision rendered by administrative judge Jacques Lareau on June 28, Quebec’s municipal commission revoked the tax exempt status of Legion Branch 212, although there was no date as to when it might take effect. Last week, the Legion got a letter indicating that the decision is retroactive to the beginning of the year.
If we have to pay our taxes, I don’t know how we’ll be able to carry on,” said Legion 212 president Fred Jennings. “We just replaced our roof, our kitchen had to be renovated and now we have to worry about leaks in our brickwork. If they levy a tax on us now, we’re finished. This could be the nail in the coffin for us.”
Legion 212 serves a total of 316 members including many honorary members who are veterans in the St. Anne hospital.
It also donates funds to various foundations, including one researching breast cancer. In addition to three dart leagues and a card club, the facilities are used for no charge by several local community groups, including the Knights of Columbus, the Parent Family Association, the Mana Food Bank and the Hope Foundation. It holds blood clinics on its premises several times a year.
“What happened is that on our financial statements, the donations don’t show up because most of them were done through the Poppy Fund and the Woman’s Auxilliary,” said Archambault. “We also sent them a list of all the organizations that use our facilities for no charge.”
The commission’s original letter informing Legion officials that they lost their tax-exempt status arrived at the branch at the end of July. Most directors were on vacation during the summer, so the Legion approached retired policeman Gilbert Archambault to figure out what they should do.
Archambault called the Commission and was told that a proper donation breakdown, receipts and letters of support should be sent to the Commission by the end of December. They mailed that package two weeks ago.
Meanwhile, Judge Lareau crafted a second decision to ensure that his June 28 decision would apply retroactively as of January 1, 2013.
Archambeault isn’t sure what to do next. He says that right now he’s busy writing letters to local businesses asking them to donate to their poppy campaign. Anyone who wants to help out can send a cheque to the Poppy Fund, Legion Branch 212, 7771 Bouvier, LaSalle, H8N 2G6, http://rcllasalle.blogspot.ca/.
Note: This article also appeared on page 14 of the City Edition of the Suburban.
I was at the LaSalle borough council meeting on May 5th when Mr. Pugliese raised the question of the huge tax bill for the Legion and asked for mayor Barbe to intervene so the organization would not have to pay it before the appeal has been heard. I thought I heard the mayor reply that the tax bill would have to be paid now regardless of the appeal (and could subsequently be reimbursed if the Legion wins the appeal). Did I get that wrong?
Hi Sonja, My notes indicate that Mayor Barbe said that the organization would have to prove its tax status as all non-profit and charitable organizations do, but I don’t have any record of her commenting about payment terms.
I guess what I’m saying is that, in response to Joseph’s questionI, I understood her to say that the bill payment could not be delayed until after the appeal is heard, i.e., that it is payable at whatever date the bill received states and that there could be a reimbursement afterwards if the Legion wins its appeal. Do your notes indicate a response to his question about delaying the payment?
Hi Ms. Arial.
Thank you for reporting on the facts regarding our current tax issue at the Royal Canadian Legion branch 212 (LaSalle).
On behalf of my legion president Mr. Fred Jennings and all the members of our branch, we would like to cordially thank you for your implication and concern with respect to the well being of our fellow legionnnaires.
Rest assured that we will be working valiantly towards a solution to this issue. In the meantime, your prompt attention to this issue is utmost appreciated.
Kindest Regards
Royal Canadian Legion branch 212 (Lasalle)
Joseph Pugliese
On behalf of Mr Fred Jennings (President) and all our members at branch 212 LaSalle