Saskatchewan Evangelical Church Directed to Pay Property Taxes on Daycare Facility
In a significant ruling that examines the boundaries of religious property tax exemptions, an evangelical church in Prince Albert, Saskatchewan, has been ordered to pay property taxes on a building it owns and operates as a daycare and public event venue. The decision, reported in February 2026, highlights the complex interplay between religious institutions and commercial activities within municipal taxation frameworks.
Details of the Case and Property Use
The church, identified as Embassy Church, owns a structure in Prince Albert that serves dual purposes: it houses a daycare facility and functions as a venue for public events. This mixed-use scenario prompted tax authorities to assess the property differently from typical religious exemptions, which generally apply to buildings used exclusively for worship or related religious functions. The order to pay property taxes suggests that the daycare and event operations are viewed as commercial ventures, thereby altering the tax status of the property.
Implications for Religious Organizations in Saskatchewan
This ruling could set a precedent for other religious institutions across Saskatchewan and potentially Canada, especially those engaging in non-religious activities such as childcare services or community events. Property tax exemptions for churches have long been a contentious issue, with municipalities seeking to balance support for religious freedom with the need for fair revenue collection. The case underscores the importance of clearly defining what constitutes religious versus commercial use of property, as blurred lines can lead to unexpected tax liabilities.
Experts in municipal law and taxation note that similar disputes have arisen in other provinces, where churches operate daycares, schools, or rental spaces. The outcome in Prince Albert may encourage other municipalities to scrutinize such arrangements more closely, potentially affecting the financial planning of religious organizations that rely on tax exemptions to support their community services.
Broader Context and Community Impact
Beyond the immediate financial implications for Embassy Church, this decision raises questions about the role of religious institutions in providing essential services like daycare in communities. Many churches across Canada offer such programs to fill gaps in public childcare, often at lower costs or with flexible hours. If property taxes are imposed, it could increase operational expenses, potentially leading to higher fees for families or reduced service availability.
In Saskatchewan, where childcare demand often outpaces supply, any changes to the affordability and accessibility of daycare services could have ripple effects on local families and the economy. The ruling also touches on broader themes of fairness and equity in taxation, as some argue that all entities engaging in commercial activities should contribute to municipal revenues, regardless of religious affiliation.
As this case unfolds, it may prompt legislative reviews or policy adjustments at the provincial level to clarify tax exemptions for religious properties. Stakeholders, including church leaders, tax officials, and childcare advocates, are likely to monitor developments closely, as the outcome could influence how similar properties are assessed across Canada in the future.
