Tax on MacBride Museum ends 60-year partnership with city, says chair

The MacBride Museum of Yukon History in Whitehorse says city council's decision to start charging museums a portion of property taxes will change the way it operates.

Previously, museums in the city were exempt from all taxes. Now they'll have to pay 12 per cent of their property tax.

"We have the stories of the gold rush, we don't have the gold of the gold rush," says Keith Halliday, chair of the MacBride Museum's board of directors.

"There's no big reserve or endowment for us, so that's going to have to come out of operations."

The MacBride Museum of Yukon History is the only museum in Whitehorse that owns its land and will be hardest hit by city council's decision. Other museums are on land owned by the territorial government.

Halliday says he was shocked by the city's decision, as the museum had been negotiating a different arrangement with city administration. 

He said the museum and the city had a partnership for 60 years based on the value the museum brings to the community. The museum's contribution was to "be an awesome community museum, support the local economy, keep downtown vibrant," he says.

In return, the city waived property taxes and made other financial contributions.

"The whole arrangement has always been that they exempt our taxes, we add value in other ways," he said.

"So they're raising our taxes, effectively from zero, up a certain amount, and they are phasing it in, but it's going to be a permanent burden on the organization, in perpetuity, I suppose."

The city is phasing-in tax payments over the next four years. Halliday expects the first year's bill to be about $5,000, with increases in following years.

"We're a small non-profit. It's going to change the way we operate, unfortunately," said Halliday.

He says the museum is working with the city to see how the new policy will play out. Along with the extra financial burden, Halliday expects there to be extra administrative work because of the property tax decision.

Nancy Oakley, executive director of the Yukon Historical and Museum Association, says museums are important to the community.

"Museums are in the business of history and then, on the other side, they also play a really important role in community life, safeguarding collections and stories that connect to our collective memory and identity."

Oakley says other cities develop policies to support the role that museums play. She said she is interested to see if Whitehorse will go that route.