HomeMy WebLinkAboutCS 28-06
Ü78
CU'l o~
REPORT TO
EXECUTIVE COMMITTEE
-
Report Number: CS 28-06
Date: June 12,2006
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2006 Tax Rates for all Classes of Property and Final Tax Due Dates for
All Realty Tax Classes Except for Commercial, Industrial & Multi-
Residential Realty Classes
Recommendation:
1. It is recommended that Report CS 28-06 of the Director, Corporate Services &
Treasurer be received and;
2. That the 2006 Residential tax rates for the City of Pickering be approved as
contained in Schedule A to By-law No. 6676/06 attached hereto;
".......
3. That the tax levy due dates for the Final Billing be July 7, 2006 and September
28, 2006 excluding the industrial, multi-residential and commercial realty tax
classes;
4. That the attached By-law No. 6676/06 providing for the imposition of the tax
rates approved under Recommendation 1 above, be read three times and
approved;
5. That the Director, Corporate Services & Treasurer be authorized to make any
changes or undertake any actions necessary, including altering due dates, in
order to ensure the tax billing process is completed;
6. That the Director, Corporate Services & Treasurer be authorized to make any
changes to the final tax rates to comply with Provincial regulations; 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 required to raise the levy approved in the
2006 Current Budget of the City of Pickering and to levy taxes for School Boards and
for the Region of Durham.
u7;]
Report CS 28-06
Date: June 12, 2006
-
Subject: 2006 Tax Rates and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 2
Financial Implications: Adoption of the recommendations and passing the by-law
will allow staff of the Corporate Services Department to bill the Final 2006 levy for all
properties except for the industrial, commercial and multi-residential tax classes.
Passing of the by-law will assist the City of Pickering to meet its financial obligations
and reduce any borrowing costs.
Background:
components:
The 2006 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
summer.
-
City's Net Tax Levv and Tax Rate Increase
On April 3, 2006, City Council approved Report CS 16-06 of the Director, Corporate
Services & Treasurer that provided for a property tax levy of $34,611,494 resulting in a
budgetary increase of 5.79%. This increase is applied to the "City portion" of the
property tax bill.
Comparison of Pickerin~'s Residential Total Tax Rate with our Eastern
Nei~hbours
Pickering
296,000
.01293052
3,827.43
Whitby
Oshawa
296,000
296,000
.01326721
.01652425
3,927.09
4,891.18
99.66
1,063.74
,-
As the above chart indicates, Pickering residents continue to enjoy having the lowest
tax rates and therefore, are paying lower property taxes per assessment dollar. The
total tax rates are used to facilitate an "apples to apples" comparison. With the transfer
of solid waste responsibility to the Region, the total tax rates had to be used for
comparison purposes.
Report CS 28-06
Date: June 12, 2006 l 3 C)
-
Subject: 2006 Tax Rates and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 3
Re-Assessment Impact for 2006 Residential Properties
When property tax reform was introduced in 1998, one of the major improvements to
the existing system was the implementation of regular province-wide re-assessments.
The Province has implemented a re-assessment for the 2006 property taxation year
based upon property values as of January 1, 2005 (from the previous valuation base of
June 30, 2003). The average residential property increase in the City of Pickering is
9.9%. Although property values did increase, when the City developed its 2006 tax
rates, the tax rates were adjusted downward to reflect the higher assessment values.
When the City developed its 2006 budget, the City did not use the transit tax room
(approximately 8%) when transit was transferred to the Region. The City publicly stated
that its budgetary increase was 5.79%. When residents compare their 2005 City share
property taxes to 2006 City share, any property that experienced are-assessment
increase of less than 11.5% will be paying less in property taxes for the City portion.
-
2005 Farm Class Ratio
Last year, Regional Council approved a reduction in the "Farm" ratio, that would be
phased in over a three-year period. The 2006 ratio is 0.2167, down from the 2005 ratio
of 0.2333. For 2007, the ratio decrease will be fully phased-in to 0.2000. In other
words, those properties with the farm realty tax class will be paying 20% of the
residential tax rate.
Tax Due Date Instalments
Recommendation 3 provides for the due dates for the payment of residential taxes
being July 7, 2006 and September 28, 2006. The table below lists the tax instalment
due dates for the last three years. The 1st instalment due date in 2003 was delayed
until August due to late receipt of information required to prepare the final billing.
Year
2005
2004
2003
1 s Instalment
Jul 15/05
Jul 16/04
Au ust 15/03
2" Instalment
Se tember 29/05
Se tember 29/04
Se tember 26/03
Other
-
Recommendations 2 and 3 provide for the levying of all tax rates on all classes of
property except for the non-residential properties where the tax rates and the property
taxes will be billed at a later date because the claw back percentages have not yet been
determined. Staff have received advice that the claw back percentages should be
uSl
Report CS 28-06
Date: June 12, 2006
-
Subject: 2006 Tax Rates and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 4
included in the billing By-law. Therefore, staff will bring a separate report to Council
regarding the non-residential tax rates and tax billing hopefully for Council's summer
meeting. Staff's preliminary estimate for the final non-residential due date is October
13, 2006.
Chan~es to the Billin~ Schedule
Recommendation 5 and 6, will allow the Director, Corporate Services & Treasurer some
latitude, limited by Provincial legislation, in effecting whatever may be necessary in
order to ensure that the taxes are billed properly and in a timely fashion. It was always
staff's understanding that Recommendation 5 would be used to change the due dates
by a few days in order to meet Provincial legislation requirements. (Section 343,
subsection one of the Municipal Act states the property owner must have at least
twenty-one days to pay their taxes.) A report would be prepared to Council if there was
a substantial delay in the billing of the final taxes.
-
Attachments:
1. By-law to Establish the 2006 Tax Rates and Final Instalment Due Dates for All
Realty Classes Except Non-Residential
Prepared By:
Approved I Endorsed By:
,./"':,,! ...~~ J J
. //la~ 11/?<~~~
Susan Aitken ead
Coordinator, Taxation Services
~d
. / ../~~~
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering Cit ou
-
,;
f'8 ,)
~ t:,
ATTACHMENT#-L- TO REPORT # C$" ~?- ø,
THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO. 6676/06
Being a by-law to adopt the estimates of all sums required to be
raised by taxation for the year 2006 and to establish the Tax
Rates necessary to raise such sums and establish the final due
dates for the residential, pipeline, farmland 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.D. 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 rateable 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 No. 26-2006 to
establish tax ratios and By-law 24-2006 to adopt estimates of all sums required by The
Regional Municipality of Durham for the Durham Region Transit Commission and By-
law 25-2006 to set and levy rates of taxation for Regional Solid Waste Management
and By-law No. 23-2006 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 2006 education tax rates for the
realty classes; and,
WHEREAS sub section 342(2) of the Municipal Act, 2001, S.D. 2001, c25, as
amended, permits the issuance of separate tax bills for separate classes of real
property for 2006; and,
WHEREAS an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 6615-06) 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 2006, The Corporation of the City of Pickering (the "City") on April
3, 2006, approved Council Report CS 16-06 and corresponding schedules and
attachments as presented including the budgetary levy of $33,943,944 and
assessment growth of $667,550 for a total tax levy of $34,611,494.
8,",
r J
\.' ",'
2. For the year 2006, 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 2006.
4. The Tax Levy due dates for the Final Billing be July 7, 2006 and September 28,
2006 for all classes excluding the non-residential tax classes (commercial,
industrial and multi-residential).
5. 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 Schedules "A" continue in force and effect.
6. This By-law comes into force on the date of its final passing.
BY-LAW read a first, second and third time and finally passed this 19th day of June
2006.
-
David Ryan, Mayor
Debi Bentley, Clerk
.-
8 A
t~: q
-
By-law No 6676/06
Schedule A
2006 Tax Rates
2006 City Region Education Total Pickering Region Education TOTAL
CVA Tax Rate Tax Rate Tax Rate Tax Rate Billinq Billinq Billinq BilLING
Property Class
Residential 7,782,657,400 0.00329667 0.00699385 o 00264000 0.01293052 25,656,770 54,430,738 20,546,216 100,633,724
Farm 72,434.080 0.0007 t 440 000151556 0.00066000 0.00288996 51,747 109,778 47,806 209,332
Managed Forest 1,965,140 000082420 000174847 0.00066000 0.00323267 1,620 3,436 1,297 6,353
Pipelines 22,960,000 0.00405290 0.00859824 0.01586577 0.02851691 93,055 197,416 364,278 654,748
Multi-Residentiai 63,523,410 0.00632570 0.01341980 0.00264000 0.02238550 40t ,830 852,471 167,702 1,422,003
Commercial 670,536,919 0.00478020 0.01014108 0.01487553 0.02979681 3,205,301 6,799,969 9,974,592 19,979,861
Commercial . Excess Land 12,568,480 o 0033461 0 0.00709876 001041287 0.02085773 42,055 89,221 130,874 262,150
Commercial Vacant land 10,511,000 0.00334610 0.00709876 0.01041287 0.02085773 35,171 74,615 109,450 219,236
Shopping Centres 294,012,302 0.00478020 0.01014108 0.01487553 0.02979681 1,405,438 2,981,602 4,373,589 8,760,629
Shopping Centres Excess land 299,140 0.00334610 0.00709876 0.01041287 0.02085773 1,001 2,124 3,115 6,239
Office Building 37,610,655 0.00478020 0.01014108 0.01487553 0.02979681 179,786 381,413 559,478 1,120,678
Office Building Excess land 0.00334610 0.00709876 0.01041287 0.02085773
Industrial 159,157,695 0.00744980 0.01580471 0.01921809 0.04247260 1,185,693 2,515,441 3,058,707 6,759,841
Industrial Excess Land 3,464,140 0.00484240 0.01027327 0.01249176 0.02760743 16,775 35,588 43,273 95,636
industrial Vacant land 28,765,000 0.00484240 0.01027327 0.01249176 0.02760743 139,292 295,511 359,325 794,128
large Industriai 28,735,685 0.00827860 0.01756296 0.02171156 0.04755312 237,891 504,684 623,897 1,366,471
large Industriai - Excess Land 680,315 0.00538110 0.01141606 0.01411251 0.03090967 3,661 7,767 9,601 21,028
Parking Lot Full 0.00000000 0.00000000 0.00000000 0.00000000
Parking lots Excess land 0.00000000 0.00000000 0.00000000 0.00000000
Total 9189881 361 32,657,085 69,281,772 40,373,200 142,312,057
Pavments in Lieu Prooerties
Residential 100,651,895 0.00329667 0.00699385 0.00264000 0.01293052 331,816 703,944 265,721 1,301,481
Residential- Tax Tenant 64,098,195 0.00329667 0.00699385 0.00264000 0.01293052 211,311 448,293 169,219 828,823
-"tial - General 48,657,510 0.00329667 0.00699385 o 00000000 0.01029052 160,408 340,303 500,711
56,578,600 0.00071440 0.00151556 0.00066000 0.00288996 40,420 85,748 37,342 163,510
1X Tenant 13,827,400 0.00071440 0.00151556 0.00066000 0.00288996 9,878 20,956 9,126 39,961
C\"'o .."ercial Full 47,885,170 0.00478020 0.01014108 0.01487553 0.02979681 228,901 485,607 712,317 1,426,825
Commercial Full - Shared PIL 31 ,852,225 0.00478020 0.01014108 0.01487553 0.02979681 152,260 323,016 473,819 949,095
Commercial Full- Tax. Tenant 2,522,350 0.00478020 0.01014108 0.01487553 0.02979681 12,057 25,579 37,521 75,158
Commercial General 9,575,355 0.00478020 0.01014108 o 00000000 0.01492128 45,772 97,104 142,877
Commercial Full - Excess Land 515,270 0.00334610 0.00709876 0.01041287 0.02085773 1,724 3,658 5,365 10,747
Commercial Full - Excess Land Tenant 196,195 0.00334610 0.00709876 0.01041287 0.02085773 656 1,393 2,043 4,092
Commercial General Excess Land 1,419,550 0.00334610 0.00709876 o 00000000 0.01044486 4.750 10,077 14,827
Commercial Gen - Vacant Land 2,550,000 0.00334610 0.00709876 o 00000000 0.01044486 8,533 18,102 26,634
Commercial Vacant Land Full 0.00334610 0.00709876 0.01041287 0.02085773
Oftice Building Full - Shared PIL 7,738,945 0.00478020 0.01014108 0.01487553 0.02979681 36,994 78,481 115,121 230,596
Parking Lot o 00000000 0.00000000 o 00000000 0.00000000
Industrial Full 0.00744980 0.01580471 0.01921809 0.04247260
Industrial General 0.00744980 0.01580471 0.00000000 0.02325451
Industrial Full- Shared PIL 7,512,005 0.00744980 0.01580471 0.01921809 0.04247260 55,963 118,725 144,366 319,054
Industrial Full- Tax Tenant 372,380 0.00744980 0.01580471 0.01921809 0.04247260 2,774 5,885 7,156 15,816
Ind. Excess Land - Shared PIL 7,626,805 0.00484240 0.01027327 0.01249176 0.02760743 36,932 78,352 95,272 210,556
Ind. Excess land Tax Tenant PIL 329,620 0.00484240 0.01027327 0.01249176 0.02760743 1,596 3,386 4,118 9,100
Industrial Excess Land Gen 0.00484240 0.01027327 0.00000000 0.01511567
Industrial Vacant Land Full 0.00484240 0.01027327 0.01249176 0.02760743
Industrial Vacant Land Gen 0.00484240 0.01027327 0.00000000 0.01511567
Industrial Vacant Land Shared Pll 2,141,500 0.00484240 0.01027327 0.01249176 0.02760743 10,370 22,000 26,751 59,121
Large Industrial Full - Shared PIL 71,963,635 0.00827860 0.01756296 0.02171156 0.04755312 595,758 1,263,894 1,562,443 3,422,095
Large Ind. Excess Land - Shared PIL 1,028,885 0.00538110 0.01141606 0.01411251 0.03090967 5,537 11,746 14,520 31,802
Total PILS 479,043,490 1 ,954,409 4,146,252 3,682,221 9,782,883
Grand Total 34,611,494 73,428,025 44,055,421 152,094,940