HomeMy WebLinkAboutFIN 06-25Report to Council
Report Number: FIN 06-25
Date: April 29, 2025
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2025 Tax Rates and Final Tax Due Dates
File: F-4200-001
Recommendation:
1.That Report FIN 06-25 regarding the 2025 tax rates and final tax due dates be
received;
2.That the 2025 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 for all taxable properties, excluding
Payment in Lieu of Taxes (PIL) properties, be July 29, 2025 and October 29,
2025, thereby providing property owners one additional month to pay their taxes
for the final two tax due dates without incurring late penalties or interest charges;
4.That the tax levy due dates for the Final Billing for all PIL properties be June 25,
2025 and September 25, 2025;
5.That staff be directed to write to Pickering’s MPP, requesting that the Education
Act, as it relates to the timing of municipal levy payments to school boards, be
amended to reflect those instances where municipalities decide to defer their
property tax payment due date(s) as a result of the current economic uncertain
environment, and that the deferral of property tax payments match the required
municipal school board payments;
6.That the attached By-law be approved;
7.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
8.That the appropriate City of Pickering officials be authorized to take the necessary
actions to give effect thereto.
Executive Summary: The purpose of this report is to approve the tax rates required to
raise the levy approved in the 2025 Current Budget and to levy taxes for School Boards
and for the Region of Durham. The report also sets the property tax final due dates for all
property classes.
FIN 06-25 April 29, 2025
Subject: 2025 Tax Rates and Final Tax Due Dates Page 2
______________________________________________________________________
Relationship to the Pickering Strategic Plan: The recommendations in this report
respond to the Pickering Strategic Plan to Deliver on Good Governance - Customer
Service Excellence.
Financial Implications: Adoption of the Recommendations and enacting the By-law
will allow the City to bill the Final 2025 levy for all properties. 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: The purpose of this report is to approve the tax rates required to raise
the levy approved in the 2025 Current Budget and to levy taxes for School Boards and
for the Region of Durham. The report also sets the property tax final due dates for all
property classes.
A. City’s Net Tax Levy and Tax Rate Increase
The City’s approved 2025 Budget provided for a property tax levy increase of 3.75% over
last year which translates into a 1.15% increase in the City’s share of the total residential
property tax bill. This increase when combined with the Region and the School Boards
increase results in an average increase of 5.35% on the total residential property tax bill.
The total average commercial increase is 4.00% and the total average industrial increase
is 4.49%. The reason that the commercial and industrial increases are less than the total
average residential increase is due to fact that the education share (which did not have a
tax increase) of property taxes is substantially higher for these two tax classes.
The City’s approved 2025 budget levy of $94,227,956 plus assessment growth of
$3,492,347 translates into a total property tax levy of $97,720,303. 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.
B. Property Tax Deferral Program
Recommendation three proposes a property tax deferral program whereby the due dates
for the payment of taxes for all taxable tax classes, excluding PIL properties, are set at
July 29, 2025 and October 29, 2025. These due dates are one month later than in recent
years, thereby providing property owners one additional month to pay their taxes for the
final two tax due dates without incurring late penalties or interest charges.
FIN 06-25 April 29, 2025
Subject: 2025 Tax Rates and Final Tax Due Dates Page 3
______________________________________________________________________
The table below provides a summary of the proposed changes to the due dates.
There are approximately 28,000 taxable properties that would be eligible for the
proposed property tax deferral program. The extended payment due dates will provide
some relief to local taxpayers and businesses who are facing financial hardship due to
economic challenges associated with the trade war.
The total cost of the deferral program to the City is expected to be minimal, with
anticipated foregone interest earnings of approximately $$36,000 to $45,000 in 2025,
based on the City’s projected short-term investment rates.
The City offers various Pre-authorized Tax Payment (PTP) plans for the payment of
property taxes, either monthly or on the instalment due dates. The monthly PTP plan
allows for 12 monthly withdrawals and there would be no change to these plans; the
payments will be withdrawn on the 1st, 8th or 16th of each month (as previously chosen by
the taxpayer). However, the payment withdrawal dates for the instalment PTP plans will
now be July 29, 2025 and October 29, 2025, subject to Council approval.
The due dates will be June 25, 2025 and September 25, 2025 for Payment In Lieu
properties. PIL properties are Federal, Provincial and Crown owned properties that are
exempt from taxation but pay grants to municipalities in lieu of property taxes. Due dates
for PILs cannot have a later date as they are set by the Provincial regulation under the
Municipal Act.
C. Communication Strategy
In addition to mailing the tax bills, the City will advertise the tax instalment due dates on
the City’s webpage, various social media outlets as well as any other communication
channels deemed appropriate by the Director, Finance & Treasurer, prior to each tax due
date.
Attachment:
1. By-law to Establish the 2025 Tax Rates and Final Instalment Due Dates for All
Realty Classes
FIN 06-25 April 29, 2025
Subject: 2025 Tax Rates and Final Tax Due Dates Page 4
______________________________________________________________________
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Karen Uphoff James Halsall
Supervisor, Taxation Division Head, Finance
Original Signed By:
Stan Karwowski
Director, Finance & Taxation
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer
Attachment 1 to Report FIN 06-25
The Corporation of the City of Pickering
By-law No. 8179/25
Being a by-law to adopt the estimates of all sums required to be
raised by taxation for the year 2025 and to establish the Tax Rates
necessary to raise such sums and to establish the final due dates
for all 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 2025-002 to establish
tax ratios, By-law 2025-005 to adopt estimates of all sums required by The Regional
Municipality of Durham for the Durham Region Transit Commission, By-law 2025-006 to
set and levy rates of taxation for Regional Solid Waste Management, By-law 2025-003 to
set and levy rates of taxation for Regional General Purposes, and By-law 2025-004 to set
and levy rates of taxation for Durham Regional Police Service Board and set tax rates on
Area Municipalities; and,
Whereas the Province of Ontario has provided the 2025 education tax rates for the 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 2025;
and,
Whereas an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law 8155/25 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 2025, The Corporation of the City of Pickering (the “City”) on April
29th, 2025 approved Council Report FIN 06-25 and corresponding schedules and
attachments as presented, resulting in a taxation levy of $97,720,303.
By-law No. 8179/25 Page 2
2.For the year 2025, 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 Region 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 2025.
4.The Tax Levy due dates for the Final Billing for all taxable properties be July 29,
2025 and October 29, 2025 for all classes.
5.The Tax Levy due dates for the Final Billing for all Payment in Lieu properties be
June 25, 2025 and September 25, 2025.
6.The Treasurer is hereby 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.
7.The Treasurer is hereby 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.
8.The Treasurer is hereby 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.
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.
By-law No. 8179/25 Page 3
By-law passed this 29th day of April, 2025.
______________________________
Kevin Ashe, Mayor
______________________________
Susan Cassel, City Clerk
RTC
2025 Budget Tax Levy
Property Class
97,720,303
2025
Phase-In
Tax
Ratios
Schedule A to By-law 8179/25
Weighted
Assmt
Disc
Factor
Weighted & Disc
Assmt
City
Tax Rate
0.00390371
2025 Calculated Tax Rates
Region Education
Tax Rate Tax Rate
Total
Tax Rate
Pickering
Billing
Region
Billing
Education
Billing
TOTAL
BILLING
RT Residential 19,695,057,557 1.0000 19,695,057,557 1.00 19,695,057,557 0.00390371 0.00744869 0.00153000 0.01288240 76,883,793 146,702,378 30,133,438 253,719,609
FT Farm 140,615,200 0.2000 28,123,040 1.00 28,123,040 0.00078074 0.00148974 0.00038250 0.00265298 109,784 209,480 53,785 373,049
TT Managed Forest 5,822,400 0.2500 1,455,600 1.00 1,455,600 0.00097593 0.00186218 0.00038250 0.00322061 5,682 10,842 2,227 18,752
PT Pipelines 33,983,000 1.2294 41,778,700 1.00 41,778,700 0.00479922 0.00915742 0.00880000 0.02275664 163,092 311,197 299,050 773,339
MT Multi-Residential 206,136,100 1.8665 384,753,031 1.00 384,753,031 0.00728627 0.01390298 0.00153000 0.02271925 1,501,963 2,865,906 315,388 4,683,258
NT New Multi Res 68,424,000 1.1000 75,266,400 1.00 75,266,400 0.00429408 0.00819355 0.00153000 0.01401763 293,818 560,635 104,689 959,142
CT Commercial 1,376,862,836 1.4500 1,996,451,112 1.00 1,996,451,112 0.00566038 0.01080059 0.00880000 0.02526097 7,793,567 14,870,931 12,116,393 34,780,891
CU Commercial - Excess Land 15,295,725 1.4500 22,178,801 1.00 22,178,801 0.00566038 0.01080059 0.00880000 0.02526097 86,580 165,203 134,602 386,385
CX Commercial Vacant Land 31,538,000 1.4500 45,730,100 1.00 45,730,100 0.00566038 0.01080059 0.00880000 0.02526097 178,517 340,629 277,534 796,680
ST Shopping Centres 689,009,987 1.4500 999,064,481 1.00 999,064,481 0.00566038 0.01080059 0.00880000 0.02526097 3,900,058 7,441,714 6,063,288 17,405,061
SU Shopping Centres Excess Land 1,701,400 1.4500 2,467,030 1.00 2,467,030 0.00566038 0.01080059 0.00880000 0.02526097 9,631 18,376 14,972 42,979
DT Office Building 77,806,152 1.4500 112,818,920 1.00 112,818,920 0.00566038 0.01080059 0.00880000 0.02526097 440,412 840,352 684,694 1,965,459
GT Parking Lot 1,649,300 1.4500 2,391,485 1.00 2,391,485 0.00566038 0.01080059 0.00880000 0.02526097 9,336 17,813 14,514 41,663
IT Industrial 225,440,260 2.0235 456,178,366 1.00 456,178,366 0.00789916 0.01507243 0.00880000 0.03177159 1,780,789 3,397,933 1,983,874 7,162,596
IU Industrial Excess Land 1,871,058 2.0235 3,786,086 1.00 3,786,086 0.00789916 0.01507243 0.00880000 0.03177159 14,780 28,201 16,465 59,446
IX Industrial Vacant Land 34,311,600 2.0235 69,429,523 1.00 69,429,523 0.00789916 0.01507243 0.00880000 0.03177159 271,033 517,159 301,942 1,090,134
LT Large Industrial 79,960,600 2.0235 161,800,274 1.00 161,800,274 0.00789916 0.01507243 0.00880000 0.03177159 631,622 1,205,201 703,653 2,540,475
LU Large Industrial - Excess Land 1,834,300 2.0235 3,711,706 1.00 3,711,706 0.00789916 0.01507243 0.00880000 0.03177159 14,489 27,647 16,142 58,279
Total Taxable 22,687,319,475 24,102,442,213 24,102,442,213 94,088,945 179,531,599 53,236,653 326,857,197
Payments in Lieu Properties
RF Residential 178,223,000 1.0000 178,223,000 1.00 178,223,000 0.00390371 0.00744869 0.00153000 0.01288240 695,731 1,327,528 272,681 2,295,940
RP Residential - Tax Tenant 27,954,400 1.0000 27,954,400 1.00 27,954,400 0.00390371 0.00744869 0.00153000 0.01288240 109,126 208,224 42,770 360,120
RG Residential - General 65,442,800 1.0000 65,442,800 1.00 65,442,800 0.00390371 0.00744869 0.00000000 0.01135240 255,470 487,463 0 742,933
RH Residential - Full Shared PIL 169,200 1.0000 169,200 1.00 169,200 0.00390371 0.00744869 0.00153000 0.01288240 661 1,260 259 2,180
FF Farm 118,184,600 0.2000 23,636,920 1.00 23,636,920 0.00078074 0.00148974 0.00038250 0.00265298 92,271 176,064 45,206 313,541
FP Farm - Tax Tenant 20,304,400 0.2000 4,060,880 1.00 4,060,880 0.00078074 0.00148974 0.00038250 0.00265298 15,852 30,248 7,766 53,867
CF Commercial Full 131,888,800 1.4500 191,238,760 1.00 191,238,760 0.00566038 0.01080059 0.00980000 0.02626097 746,541 1,424,477 1,292,510 3,463,528
CH Commercial Full - Shared PIL 42,180,100 1.4500 61,161,145 1.00 61,161,145 0.00566038 0.01080059 0.00980000 0.02626097 238,755 455,570 413,365 1,107,690
CP Commercial Full - Tax. Tenant 14,365,800 1.4500 20,830,410 1.00 20,830,410 0.00566038 0.01080059 0.00880000 0.02526097 81,316 155,159 126,419 362,894
CG Commercial General 49,485,700 1.4500 71,754,265 1.00 71,754,265 0.00566038 0.01080059 0.00000000 0.01646097 280,108 534,475 0 814,583
CV Commercial Full - Excess Land 2,478,100 1.4500 3,593,245 1.00 3,593,245 0.00566038 0.01080059 0.00980000 0.02626097 14,027 26,765 24,285 65,077
CW Commercial General Excess Land 1,833,900 1.4500 2,659,155 1.00 2,659,155 0.00566038 0.01080059 0.00000000 0.01646097 10,381 19,807 0 30,188
CZ Commercial Gen - Vacant Land 3,888,000 1.4500 5,637,600 1.00 5,637,600 0.00566038 0.01080059 0.00000000 0.01646097 22,008 41,993 0 64,000
DH Office Building Full - Shared PIL 26,618,500 1.4500 38,596,825 1.00 38,596,825 0.00566038 0.01080059 0.00980000 0.02626097 150,671 287,496 260,861 699,028
IH Industrial Full- Shared PIL 24,305,400 2.0235 49,181,977 1.00 49,181,977 0.00789916 0.01507243 0.01250000 0.03547159 191,992 366,341 303,818 862,151
IK Ind. Excess Land - Shared PIL 2,576,600 2.0235 5,213,750 1.00 5,213,750 0.00789916 0.01507243 0.01250000 0.03547159 20,353 38,836 32,208 91,396
IJ Industrial Vacant Land Shared PIL 3,110,000 2.0235 6,293,085 1.00 6,293,085 0.00789916 0.01507243 0.01250000 0.03547159 24,566 46,875 38,875 110,317
LK Large Ind. Excess Land - Shared PIL 7,874,600 2.0235 15,934,253 1.00 15,934,253 0.00789916 0.01507243 0.01250000 0.03547159 62,203 118,689 98,433 279,325
LI Large Ind. Water Intake - Shared PIL 9,865,200 2.0235 19,962,232 1.00 19,962,232 0.00789916 0.01507243 0.01250000 0.03547159 77,927 148,693 123,315 349,934
LS Large Ind. Generating Station - Shared PIL 24,048,900 2.0235 48,662,949 1.00 48,662,949 0.00789916 0.01507243 0.01250000 0.03547159 189,966 362,475 300,611 853,053
LN Large Ind. Non-Gen Stn - Shared PIL 44,198,300 2.0235 89,435,260 1.00 89,435,260 0.00789916 0.01507243 0.01250000 0.03547159 349,129 666,176 552,479 1,567,784
VP Aggregate Extraction
Total PILS
Grand Totals
balanced
366,000
799,362,300
23,486,681,775
1.646535
602,632
930,244,743
25,032,686,956
1.00 602,632
930,244,743
25,032,686,956
0.00642760 0.01226452 0.00511000 0.02380212
2,353
3,631,406
97,720,351
4,489
6,929,103
186,460,702
1,870
3,937,731
57,174,384
8,712
14,498,240
341,355,437
J:\RPTCOUNC\2025\FIN 06ku Attach 1Tax Calcs