HomeMy WebLinkAboutFIN 05-191 1 1 G From: Stan Karwowski Director, Finance & Treasurer Subject: 2019 Tax Rates and Final Tax Due Dates Recommendation: Report to Council· Report Number: FIN 05-19 Date: April 23, 2019 1. That Report FIN 05-19 of the Director, Finance & Treasurer regarding the 2019 tax rates be received; 2. That the 2019 tax rates for the City of Pickering be approved as contained in Schedule "A" of the By-law attached hereto; 3. That the tax levy due dates for the Final Billing be June 26, 2019 and September 26, 2019 excluding the industrial, multi-residential and commercial realty tax classes; 4. That for the year 2019, the City shall levy upon designated Universities and Colleges an annual tax at t~e prescribed amount for each full-time student enrolled in the University or College, as determined by the Minister of Training, Colleges and Universities, payable on or after July 1's1 ; 5. That the attached By-law be approved; 6. That the Director, Finance & Treasurer be authorized to make any changes or undertake any actions necessary to comply with Provincial regulations including altering due dates or final tax rates to ensure that the property tax billing process is completed; and · 7. That the appropriate City of Pickering officials be authorized to take the necessary actions to give effect thereto. Executive Summary: Adoption of the above Recommendations and the attached By-law provides for the approval of tax rates reqwired to raise the levy approved in the 2019 Current Budget of the City of Pickering and to levy taxes for School Boards and for the Region of Durham. This is for all realty tax classes except for commercial, industrial and multi-residential which will be dealt with later this year.
FIN 05-19 Subject: 2019 Tax Rates and Final Tax Due Dates April 23, 2019 Page 2 Financial Implications: Adoption of the Recommendations and enacting the By-law will allow the City to bill the Final 2019 levy for all properties except for the industrial, commercial and multi-residential tax classes, which will be dealt with later this year. Passing of the By-law will assist the City of Pickering in meeting its financial obligations and reducing any borrowing costs. This levy also raises taxes for the Region of Durham and the School Boards. Discussion: components: The 2019 final tax billing process will consist of two separate 1. Residential and residential-related (farm, managed forest) properties; and, 2. Commercial, industrial, and multi-residential realty classes. Later this year, a report will be presented to Council asking for Council's approval to bill the non-residential tax classes. The non-residential tax classes are subject to tax capping and Pickering's staff, in conjunction With the other lower tier municipal_ tax staff and the Region's finance staff, will be working on the tax capping calculations during the next few months. City's Net Tax Levy and Tax Rate Increase The City's 2019 budget provided for an average property tax increase of 2.47 per cent and was adopted by Council through Finance Department Report FIN 02-19. The 2019 Council approved budget levy of $64,791,131 plus assessment growth of $1,847,000 translates into a total property tax levy of $66,638,131. The Region's tax increase for Pickering is 1.89 per cent and the School Board increase is zero, resulting in a total average residential increase of approximately 1. 79 per cent. The property tax rates are calculated based on the budgets of both Pickering and · Durham Region. The tax rate· itself is defined under section 306 of the Municipal Act and it is to be calculated to eight decimal points. Tax Due Date Instalments Recommendation 3 sets the due dates for the payment of residential taxes at June 26, 2019 and September 26, 2019. For your reference, the table below lists the tax instalment due dates for residential properties for the last three years. Year 1st Instalment 2nd Instalment 2019 June 26, 2019 September 26, 2019 2018 June 27, 2018 September 27, 2018 2017 June 28, 2017 September 28, 2017 2016 June 28, 2016 September 28, 2016 11 2
113 FIN 05-19 Subject: 2019 Tax Rates and Final Tax Due Dates Communication Strategy April 23, 2019 Page 3 In addition to mailing the tax bills, the City will advertise the tax instalment due dates on the City's webpage, the Pickering News Advertiser and any other communication channels deemed appropriate by the Director, Finance & Treasurer, prior to each tax due date. Other Recommendations 2 and 3 provide for the levying of all tax rates on all classes of property, except for the non-residential properties. For non-residential properties, the property taxes will be billed at a later date because the "claw back" percentages have not yet been determined. Staff will bring a separate report to Council for the non-residential billing in June. Staff's preliminary estimate for the final non-residential tax due date is September 26, 2019. Recommendation 4 provides for the levying of an annual tax for institutions designated under section 323 of the Municipal Act. In the fall of 2013, the Ministry of Training, Colleges & Universities implemented a new enrolment system for colleges which resulted in the Durham College of Applied Arts and Techn~logy being reported under the City of Pickering. Each year the Ministry of Municipal Affairs and Housing provides a listing of institutions and their respective capacity figures as of December 31st of the prior year. The Minister of Training, Colleges and Universities prescribes the amount to be levied for each full-time student enrolled in the college. The institution is billed directly, and levies are payable on or after July 1st each year. It is estimated that the gross billing under recommendation 4 is approximately $9,750. Changes to the Billing Schedule Recommendation 5 will allow the Director, Finance & Treasurer some latitude, limited by Provincial legislation, in effecting whatever changes may be necessary in order to ensure that the taxes are billed properly and in a timely fashion. Recommendation 5 will be used only if required to meet Provincial legislative requirements, such as the requirements in subsection 343(1) of the Municipal Act that property owners must have at least 21 days notice to pay their taxes. A further report to Council will be prepared if there is any substantial change proposed to the billing of the final taxes. eBilling Last year, the City implemented an ·"eBilling" option for Pickering taxpayers. Currently, the City has 231 taxpayers taking advantage of this option. The current postage rate is $1.05 for first class letter mail and as a minimum, the City is saving at least $485 per year. The City is promoting eBilling through the following paths: • Community Page • Property Tax Brochure (Interim and Final) • Website •· Social Media
FIN 05-19 Subject: 2019 Tax Rates and Final Tax Due Dates April 23, 2019 Page 4 The everyday challenge for all levels of government is to find cost efficiencies without impacting customer service levels. The eBilling option has the potential to save the City up to $28,000 per year if the taxpayers selected this option. Attachments: 1. By-law to Establish the 2019 Tax Rates and Final Instalment Due Dates for All • Realty Classes Except Non-Residential Prepared By: (lJ_/1/ Mik~nes Supervisor, Taxation Recommended for the consideration of Pickering City Council Approved / Endorsed By: Stan Karwowski Director, Finance & Treasurer ¥1s-,zot? Tohy Prevedel, P.Eng. Chief Administrative Officer . 114
115 ArrAcHMENT#L ro REPoRr#..t:at{S-1 The Corporation of the City of Pickering By-law No. Being a by-law to adopt the estimates of all sums required to be raised by taxation for th~ year 2019 and to establish the Tax Rates necessary to raise such sums and to establish the final due dates for the residential, pipeline, farm and managed forest realty tax classes. Whereas it is necessary for the Council of The Corporation of the City of Pickering, pursuant to the Municipal Act, 2001, S.O. 2001, c25, as amended, to pass a By-law to levy a separate tax rate on the assessment in each property class; and, Whereas the property classes have been prescribed by the Minister of Finance under the Assessment Act, R.S.O. 1990, ch.A.31, as amended and its Regulations; and, Whereas it is necessary for the Council of The Corporation "of the City of Pickering, pursuant to the Municipal Act, to levy on the whole ratable property according to the last revised assessment roll for The Corporation of the City of Pickering the sums set forth for various purposes in Schedule "A", for the current year; and, Whereas the Regional Municipality of Durham has passed By-law 22-2019 to establish tax ratios, By-law 24-2019 to adopt estimates of all sums required by The Regional Municipality of Durham for the Durham Region Transit Commission, By-law 25-2019 to set and levy rates of taxation for Regional Solid Waste Management, and By-law 23-. 2019 to set and levy rates of taxation for Regional General Purposes and set tax rates on Area Municipalities; and, Whereas the Province of Ontario has provided the 2019 education tax rates forthe realty · classes; and, Whereas sub section 342(2) of the Municipal Act, 2001, S.O. 2001, c25, as amended, permits the issuance of separate tax bills for separate classes of real property for 2019; . and, Whereas an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law 7668/18 before the adoption of the estimates for the current year); Now therefore the Council of the Corporation of the City of Pickering hereby enacts as follows: 1. For the year 2019, The Corporation of the City of Pickering (the ''.City") on February 25, 2019, approved Council Report FIN 02-19 and corresponding schedules and attachments as presented, resulting in a taxation levy of $66,638,131.
By-law No. Page 2 2. For the year 2019, the City shall levy upon the Property Classes set out in Schedule "A", the rates of taxation as set out in Schedule "A", for the City of Pickering, the Regi.on of Durham and for Education purposes on the current value assessment as also set out in Schedule "A". Where applicable, taxes shall be adjusted in accordance with Bill 140, as amended and its Regulations. 3. The levy provided for in Schedule "A" shall be reduced by the amount of the interim levy for 2019. 4. The Tax Levy due dates for the Final Billing be June 26, 2019 and September 26, 2019 for all classes excluding the non-residential·tax classes (commercial, industrial and multi-residential). C 5. The Treasurer is hearby authorized to accept twelve monthly electronic payments commencing January 1st and ending December 1st inclusive. Failure by the taxpayer to pay any one ,monthly part payment, will invoke the late payment charges as outlined in the Municipal Act and confirmed by the City through By-law every year. 6. The Treasurer is hearby authorized to accept twelve monthly electronic payments commencing January 8th and ending December 8th inclusive. Failure by the taxpayer to pay any one monthly part payment, will invoke the late payment charges as outlined in the Municipal Act and confirmed by the City through By-law every year. 7. The Treasurer is hearby authorized.to accept twelve monthly electronic payments commencing January 16th and ending December 16th inclusive. Failure by the taxpayer to pay any one monthly part payment, will invoke the late payment charges as outlined in the Municipal Act and confirmed by the City through By-law every year. 8. For the year 2019, the City shall levy upon designated Universities and Colleges an annual tax at the prescribed amount for each full-time student enrolled in the university. or college, as determined by the Minister of Training, Colleges, and Universities, payable on or after July 1st in accordance with section 343 of the Municipal Act. 9. If any section or portion of this By-law or of Schedule "A" is found by a court of competent jurisdiction to be invalid, it is the intent of Council for The Corporation of the City of Pickering that all remaining sections and portions of this By-law and of Schedule "A" continue in force and effect. 10. This By-law comes into force on the date it is passed. 11 6
By-law No. Page 3 By-law passed this 23rd day of April 2019. David Rya~, Mayor Susan Cassel, City Clerk 117
Schedule A -2019 Calculated Tax Rates 2019 Budget Tax Levy 63,229, 1001 2018 City Region Education Total Pickering Region Education TOTAL RTC Property Class -Taxable Phase-In Assessment Tax Rate Tax Rate Tax Rate Tax Rate BIiiing Billing Billlng BILLING RT Residential 15,252,692,897 0.00335634 0.00606877 0.00161000 0.01103511 51,193,223 92,565,085 24,556,836 168,315,144 RD Residential-Educ only (Legion) 908,000 0.00000000 0.00000000 0.00161000 0.00161000 0 0 1,462 1,462 FT Farm 161,923,891 0.00067127 0.00121375 0.00040250 0.00228752 108,695 196,535 65,174 370,404 TT Managed Forest 4,642,289 0.00083909 0.00151720 0.00040250 0.00275879 3,895 7,043 1,869 12,807 PT Pipelines 30,454,175 0.00412628 0.00746095 0.01030000 0.02188723 125,662 227,217 313,678 666,558 MT Multi-Residential 149,578,391 0.00626461 0.01132735 0.00161000 0.01920196 937,050 1,694,327 240,821 2,872,198 NT Multi-Residential (New Construction) 0.00369197 0.00667565 0.00161000 0.01197762 0 0 0 0 CT Commercial 972,783,710 0.00486669 0.00879971 0.01030000 0.02396640 4,734,237 8,560,215 10,019,672 23,3N,124 cu Commercial -Excess Land 11,361,479 0.00438002 0.00791974 0.00927000 0.02156976 49,764 89,980 105,321 245,064 ex Commercial Vacant Land 68,404,587 0.00438002 0.00791974 0.00927000 0.02156976 299,613 541,747 634,111 1,475,471 XT Commercial (New Construction) Full 80,395,899 0.00486669 0.00879971 0.01030000 0.02396640 391,262 707,461 828,078 1,926,800 XU Commercial (New Construction) Exe Land 4,735,907 0.00438002 0.00791974 0.00927000 0.02156976 20,743 37,507 43,902 102,152 xx Commercial (New Construction) Vacant 0.00438002 0.00791974 0.00927000 0.02156976 0 0 0 0 ST Shopping Centres 685,123,755 0.00486669 0.00879971 0.01030000 0.02396640 3,334,285 6,028,890 7,056,775 16,419,950 SU Shopping Centres Excess Land 146,300 0.00438002 0.00791974 0.00927000 0.02156976 641 1,159 1,356 3,156 ZT Shopping Centre (New Construction) 40,436,133 0.00486669 0.00879971 0.01030000 0.02396640 196,790 355,826 416,492 969,109 zu Shopping Cir Exe Land (New Construction) 85,300 0.00438002 0.00791974 0.00927000 0.02156976 374 676 791 1,840 OT Office Building 84,633,469 0.00486669 0.00879971 0.01030000 0.02396640 411,885 744,750 871,725 2,028,360 DU Office Building Excess Land 0.00438002 0.00791974 0.00927000 0.02156976 0 0 0 0 YT Office Building (New Construction) 0.00486669 0.00879971 0.01030000 0.02396640 0 0 0 0 GT Parking Lot 480,500 0.00486669 0.00879971 0.01030000 0.02396640 2,338 4,228 4,949 11,516 HT Landfill 0.00369197 0.00667565 0.01036762 0 0 0 0 IT Industrial 167,165,016 0.00706174 b.01276869 0.01290000 0.03273043 1,180,476 2,134,478 2,156,429 5,471,383 JT Industrial (New Construction) 12,955,676 0.00706174 0.01276869 0.01030000 0.03013043 91,490 165,427 133,443 390,360 IU Industrial Excess Land 1,281,618 0.00623763 0.01127881 0.01139457 0.02891101 7,994 14,455 14,603 37,053 IX lndustrtal Vacant Land 12,679,522 0.00623763 0.01127881 0.01139457 0.02891101 79,090 143,010 144,478 366,578 JU lnduslrtal Excess Land (New Construction) 1,986,700 . 0.00623763 0.01127881 0.00909799 0.02661443 12,392 22,408 18,075 52,875 LT Large lnduslrtal 54,016,500 0.00706174 0.01276869 0.01290000 0.03273043 381,450 689,720 696,813 1,767,983 LU Large lndustrtal -Excess Land 2,349,000 0.00623763 0.01127881 0.01139457 0.02891101 14,652 26,494 26,766 67,912 Kr Large lndustrtal (New Construction) 14,360,000 0.00706174 0.01276869 0.01030000 0.03013043 101,407 183,358 147,908 432,673 KU Large Ind Excess Land (New Construction) 0.00623763 0.01127881 0.00909799 0.02661443 0 0 0 0 -1 Farmland Awaiting Development 0.00251726 0.00455158 0.00120750 0.00827634 0 0 0 0 Total Taxable 17,815,580,714 63,679,409 115,141,995 48,501,525 227,322,930 Property Class -Payments in Lieu RF Residential 150,641,023 0.00335634 0.00606877 0.00161000 0.01103511 505,602" 914,206 242,532 1,662,340 RP Residential -Tax Tenant 39,136,820 0.00335634 0.00606877 0.00161000 0.01103511 131,356 237,512 63,010 431,879 RG Residential -General 62,227,071 0,00335634 0.00606877 0.00000000 0.00942511 208,855 377,642 0 586,497 RH Residential -Full Shared PIL 251,650 0.00335634 0.00606877 0.00161000 0.01103511 845 1,527 405 2,777 FF Farm 117,917,350 0.Q0067127 0.00121375 0.00040250 0.00228752 79,154 143,122 47,462 269,738 FP Farm -Tax Tenant 34,081,093 0.00067127 0.00121375 0.00040250 0.00228752 22,878 41,366 13,718 77,961 CF Commercial Full 131,008,493 0.00486669 0.00879971 0.01030000 0.02396640 637,578 1,152,837 1,349,387 • 3,139,802 CH Commercial Full -Shared PIL 42,143,410 0.00486669 0.00879971 0.01030000 0.02396640 205,099 370,850 434,077 1,010,026 CP Commercial Full -Tax. Tenant 2,500,605 0.00486669 0.00879971 0.01030000 0.02396640 12,170 22,005 25,756 59,930 CG Commercial General 48,674,934 0.00486669 0.00879971 0.00000000 0.01366640 236,886 428,325 0 665,211 CV Commercial Full -Excess Land 2,062,825 0.00438002 0.00791974 0.00927000 0.02156976 9,035 16,337 19,122 44,495 cw Commercial General Excess Land 1,833,900 0.00438002 0.00791974 0.00000000 0.01229976 8,033 14,524 0 22,557 CZ Commercial Gen -Vacant Land 3,251,500 0.00438002 0.00791974 0.00000000 0.01229976 14,242 25,751 0 39,993 CJ Commercial -Vacant Land Shared PIL 0.00438002 0.00791974 0.00927000 0.02156976 0 0 0 0 . DH Office Building Full -Shared PIL 26,576,690 0.00486669 0.00879971 0.01030000 0.02396640 129,341 233,867 273,740 636,948 IH Industrial Full-Shared PIL 15,892,903 0.00706174 0.01276869 0.01290000 0.03273043 112,232 202,932 205,018 520,182 IP Industrial Full-Tax Tenant 291,075 0.00706174 0.01276869 0.01290000 0.03273043 2,055 3,717 3,755 9,527 IK Ind. Excess Land -Shared PIL 9,529,438 0.00623763 0.01127881 0.01139457 0.02891101 59,441 107,481 108,584 275,506 IQ Ind. Excess Land Tax Tenant PIL 266,425 0.00623763 0.01127881 0.01139457 0.02891101 1,662 3,005 3,036 7,703 IJ lnduslrtal Vacant Land Shared PIL 3,010,000 0.00623763 0.01127881 0.01139457 0.02891101 18,775 33,949 34,298 87,022 LK Large Ind. Excess Land -Shared PIL 7,874,600 0.00623763 0.01127881 0.01139457 0.02891101 49,119 88,816 89,728 227,663 LI Large Ind. Water Intake -Shared PIL 9,698,200 0.00706174 0.01276869 0.01290000 0.03273043 68,486 123,833 125,107 317,426 LS Large Ind. Generating Station -Shared PIL · 24,048,900 0.00706174 0.01276869 0.01290000 0.03273043 169,827 307,073 310,231 787,131 LN Large Ind. Non-Gen Stn -Shared PIL 39,083,955 0.00706174 0.01276869 0.012~0000 0.03273043 276,001 499,051 504,183 1,279,235 Total PILS 772,002,860 2,958,671 5,349,727 3,853,149 12,161,547 Grand Totals 18,587,583,574 66,638,080 120,491,723 52,354,674 239,484,477 118