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Home My WebLink AboutBy-law 5527/99THE CORPORATION OF THE TOWN OF PICKERING BY-LAW NO. 5527/99 Being a by-law to establish the revised 1998 taxation billing for the commercial, industrial and multi-residential properties. WHEREAS the Regional Municipality of Durham has passed By-law No. 9-99 to limit tax reform related property tax increases to 10% in 1998, a further 5% in 1999 and a further 5% in 2000 for industrial, commercial and multi-residential properties in the Region of Durham as provided for under Division B of Part XXII.2 of the Municipal Act. WHEREAS the Regional Municipality of Durham has passed By-law No. 65-98 opting to have the optional property classes consisting of the office building property class, shopping centre property class and large industrial property class within the Region of Durham. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF PICKERING HEREBY ENACTS AS FOLLOWS: All assessment in any commercial class, any industrial class or in the multi-residential class, shall have the revised tax levy for the year 1998 calculated as follows: Total tax rate applicable in previous year X assessed value + any adjustment made to increase or decrease taxes for the year on under Division B of Part XXII.2 of the the assessment Municipal Act roll as most recently revised for the taxation year 1998 If the revised tax levy as calculated above creates a tax liability for the property owner, the taxes owed shall be due in one installment on a date on August 27, 1999 or adjusted by the Director of Finance/Treasurer. If any section or portion of this By-law is found by a court of competent jurisdiction to be invalid, it is the intent of Council for the Corporation of the Town of Pickering that all remaining sections and portions of this By-law continue in force and effect. Taxes shall be payable to the Treasurer, Town of Picketing. This By-law comes into force on the date of its final passing. BY-LAW read a first, second and third time and fmally passed this day of 1999. Waylae Arthurs, Mayor Bruce Taylor, Clerk REPORT #F:IN Schedule B Tax Alert Letter July X, 1999 Dear Property Owner: Commercial, Industrial & Multi-Residential Property Tax Alert This property tax alert is to notify you that you may be impacted by the "clawback" provisions of Bill 79, the Provincial Government's Fairness for Property Taxpayer Act, 1998. Town of Pickering staff are currently preparing the REVISED tax bills for 1998. Our preliminary analysis indicates that you may owe additional taxes for 1998 currently estimated in the amount of SX,XXX.XX. This additional amount excludes penalties, late payment fee or any currently outstanding balances in your account. The Province of Ontario introduced property assessment tax reform in 1998. The new property tax system established a common base from which the assessed value of all properties is equitably measured. In addition, the Province eliminated the Business Occupancy Tax (BOT). Many property owners in the industrial, commercial and multi-residential property classes experienced a wide range of increases and decreases due to assessment changes and property tax reform. To reduce these increases, the Province introduced Bill 79 to limit the increases and clawback some of the decreases. Capping of the increases is to be funded by withholding decreases within the same realty class. For example: a portion of the industrial decreases are pooled together to pay for the industrial capped increases. For 1998, property tax reform increases were capped at 10%. A further capping of 5% has been legislated by the Province for 1999 and 2000. This will result in a postponement of your property assessment tax reform savings until after the year 2000. Your co-operation and patience in understanding these complex changes being legislated by the Provincial Government is appreciated. After you have received your 1998 REVISED property tax bill, you are encouraged to contact the Town of Picketing Tax office at (905) 420 4614 with any questions. We anticipate our phone lines will be busy - your patience is appreciated. For further information regarding Bill 79, please contact the Ontario Government Ministry of Finance at 1-800-263-7965 or visit their website at www.gov.on.ca/FIN/hmpage.html. Sincerely yours, Town of Picketing Taxation Office ATTACHMENT # _.~__ TO REPORT Schedule C Provincial Disclosure Notice EXPLANATION OF 1998 PROPERTY TAXES FORM 5' I MUNICIPALITY LEGAL DESCRIPTION ASSESSED OWNER ASSESSMENT ROLL NO. PROPERTY cLAss Commercial 1998 CURRENT VALUE ASSESSMENT $68,280 RECALCULATED 1998 PROPERTY TAXES Division B of Part ~11.2 of the Fairness for Property Taxpayers Act The Fairness for Property Taxpayers Act, 1998 protects businesses from large tax refOrm.related property tax increases. This new legislation prevents commercial, industrial and multi-residential prOperties from facing refOrm-: related tax increases of more than 10 per cent in 1998 and a further 5 per cent in each of 1999 and 2000. Businesses who received tax decreases due to reform will see a portion of those decreases delayed. Any municipal tax changes resulting from decisions of local councils and the business education tax cut are applied on top of the amount of the taxes paid in 1997, as adjusted by the cap. ' :: : :.: ::::i: : = This tax nOtice exPlains h°w this''new iegi'slation affects y<~ur ~gge. prOperty t~e~: If y0~ ~a~e questions, please: cOntact your municipal tax office.·.'~ .' '. : ~ : :, .. 1998 TAXES PREVIOUSLY BILLED I 1998 Taxes PreviouslyBilled JAMOUN?$1,945 II Amount of Taxes Levied for 1998 AMOUNT $ 1,945 RECALCULATED 1998 PROPERTY ~ AMOUNT $ TAXES: : ~': : · 1997 Base Taxes * 1,408 Capping Adjustment 141 Education Tax Reduction -0 Municipal Tax Change 70 Recalculated 1998 Property Taxes 1,618 1998 Tax Adjustment = Recalculated 1998 Property Taxes $1,618 AMOUNT $ -327 1998 Taxes Previoush/Billed $1,945 Note: All amounts have been rounded to nearest dollar. 1997 bess taxes include ell 1997 business taxes paid by (levied on) occupants of the properly but does not include Business Improvement Area and Local Improvement Charges. Schedule D ATTACHMENT # ~_.~_ TO REPORT Explanation Letter for 1998 Revised Tax Bill Understanding Your 1998 Revised Property Tax Bill What is the Fairness for Property Taxpayers Act (Bill 79)? On December 18, 1998, the Fairness for Property Taxpayers Act (Bill 79) was passed to protect businesses in Ontario from large property tax increases. Bill 79 will limit the increases resulting from property tax reform on commercial, industrial and multi-residential properties to 10% for 1998, 5% for 1999 and another 5% for the year 2000. In addition, Bill 79, allows the Town of Pickering and the Region of Durham to add budgetary increases to the property tax bill. The budgetary increases for 1998 are mainly due to Provincial Downloading. Bill 79 also states that the Town of Pickering can not issue the 1999 final tax bill until the 1998 revised tax bill has been issued. Why have your 1998 taxes been recalculated? As required by Bill 79 - the Provincial government's Fairness for Property Taxpayers Act, 1998, property tax reform increases for 1998 have been "capped" at a maximum of 10% plus the 1998 budgetary increase approved by the Region of Durham and the Town of Pickering. What does this mean? Some property owners will pay less. Commercial, industrial and multi- residential taxpayers who experienced assessment reform related increase in 1998 will now receive a credit which will be applied to their 1999 FINAL TAX BILL. Some property owners will pay more. Commercial, industrial and multi- residential taxpayers who originally received a decrease in their 1998 taxes will now see a portion of that decrease "CLAWED BACK" and will have to pay an additional amount to help pay for those property taxpayers receiving the capped increase. What is the Provincial Notice? The notice entitled "Explanation of 1998 Property Taxes - Form 5", was designed and mandated by the Province of Ontario and is included with your tax bill. This notice outlines the amount of the capping adjustment required. One notice is supplied for each type of property class. If you have more than one class, the sum total of all notices will equal the net 1998 capping adjustment shown on your tax bill. When will I receive the 1999 final tax bill? The Town of Pickering expects to issue the 1999 final tax bill in September with two installment dates being the end of October and November. Are residential taxes affected by Bill 79? No. These changes only affect commercial, industrial and multi-residential properties. They will have no impact on taxes for residential properties or residential condominiums. What happens after 20017 Bill 79 only addresses the 1998, 1999 and 2000 tax years. Town of Pickering staff cannot speculate on the impact of Provincial property tax reforms beyond 2000. What is a multi-residential property? Multi-residential properties are defined as properties with seven or more rental units such as apartment buildings. Additional Information Ontario Ministry of Finance - Bill 79 News Release www. gov.on.ca/FIN/english/nresmal2.htm Government of Ontario - 1998 Legislation www.ontla.on.ca/Documents/documentsindex, htm Questions? We appreciate your co-operation and patience in understanding these complex changes being legislated by the Provincial government. You are encouraged to contact the Town of Pickering Tax Office at (905) 420 - 4614 with any questions regarding the calculation of your REVISED 1998 tax bill. We anticipate our phone lines will be busy and your patience is also appreciated in this regard. Town of Pickering Tax Office