The Lakes District Film Society's application for a permissive tax exemption for the Beacon Theatre was approved by mayor and council last week.

The society purchased the theatre in August last year.

According to society president Michael Riis-Christianson any profits made by the theatre are reinvested back into the theatre or distributed to worthy community organizations.

"None of our directors receive any remuneration from the society or the Beacon Theatre for their efforts and in fact are prohibited from doing so under our constitution and bylaws," Riis-Christianson wrote in a letter to council.

He also pointed out to council that the Village of Salmon Arm already grants annual permissive tax exemptions to the properties owned by the Salmar Community Association, who operate the Salmar Classic Theatre and the Salmar Grand.

Chief administrative officer Sheryl Worthing spoke to councillors at the meeting and said she had to do a lot of research to determine if the theatre is eligible for a permissive tax exemption.

"I discussed this with our lawyers and have determined that the Lakes District Film Society does fall under a non profit society. This was determined based on their constitution and the purpose of the society," she said.

She went on to say that because the society reinvests any proceeds back into the theatre or distributes the funds to community organizations the film society is eligible for a tax exemption under the community charter.

"I am competent this is allowed," she said.

According to Worthing approval would result in a $1,500 exemption which would then fall on the shoulders of village tax payers.

Councillor Luke Strimbold said he felt comfortable approving the permissive tax exemption due to the investment the society is making in the community.

"That justifies it for me," he said.

Councillor Eileen Benedict agreed and the motion was passed.

Councillor John Illes previously removed himself from the conversation, citing a conflict of interest as he is also a director on the Lakes District Film Society board.

The bylaw will now come back to council for three readings in September and will be adopted in October, following a two week period of public notice.

Worthing said to council the bylaw has to be in place before the end of October, for submission to B.C. Assessment.

Other local businesses and organizations already receiving permissive tax exemptions for 2011 in the village are; The Pines - exempt for $47,000, Kinette Park - exempt for $214, St. Paul's United Church - exempt for  $1,300, the Pentecostal Church (Mulvaney Crescent) - exempt for $1,150, the Pentecostal Church (Babine Road) - exempt for $2,600, Lakes District Hospital - exempt for $40,000, Immaculata Church exempt for $2,500, Vineyard Christian Fellowship - exempt for $500 and the Ladies Auxiliary Thrift Store - exempt for $600.

According to Worthing, the Community Charter requires municipalities to exempt health care facilities such as The Pines and hospitals, under section 220.