HomeMy WebLinkAboutCS 23-07
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 23-07
Date: June 11, 2007
093
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2007 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. That Report CS 23-07 of the Director, Corporate Services & Treasurer be
received;
2. That the 2007 Residential 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 July 11, 2007 and September
27, 2007 excluding the industrial, multi-residential and commercial realty tax
classes;
4. That the attached By-law 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
2007 Current Budget of the City of Pickering and to levy taxes for School Boards and
for the Region of Durham.
Report CS 23-07
Date: June 11, 2007
Subject: 200"7 Tax Rates and Final
T ax Due Dates for All Realty Tax Classes Except for
094 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 2007 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.
Sustainability Implications: Passing the attached By-law will allow the City to obtain
the funds required to maintain it's financial sustainability objectives.
Background:
components:
The 2007 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 Levy and Tax Rate Increase
On April 2, 2007, City Council approved Report CS 16-07 of the Director, Corporate
Services & Treasurer that provided for a property tax levy of $38,021,820 resulting in a
budgetary increase of 8.79%. This increase is applied to the "City portion" of the
property tax bill.
Comparison of Pickerin~ts Residential Total Tax Rate with our Eastern
Neiahbours
i Pickering .01352624 3,787.00
! Ajax .01375935 3,853.00 66.00
I
i Whitby .01381364 3,868.00 81.00
LQ_~!!~~~___________.._______ ----------?~Q-~QQg----------- --:Q!?Q~?-~-~------.------- ---------~!?-~~:QQ--------- -----------~~~-~QQ---------j
As the abovEl 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.
Report CS 23-07
Date: June 11, 2007
Subject: 2007 Tax Rates and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 3
095
Re-Assessment Update Cancelled Bv Province
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 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 planned reassessment update of all properties in Ontario was cancelled
for the 2007 & 2008 tax years, and therefore, the valuation date used to calculate the
2007 taxes will remain as January 1, 2005.
Farm Class Ratio
In 2005, Regional Council approved a reduction in the "Farm" ratio, that would be
phased in over a three-year period. For 2007, the ratio decrease has been fully
phased-in. The 2007 ratio is 0.2000, down from the 2005 ratio of 0.2333 and .2167 in
2006 All properties in 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 11, 2007 and September 27, 2007. The table below lists the tax instalment
due dates for the last four years.
Year
2007
2006
2005
2004
*2003
1 S Instalment
Jul 11/07
Jul 7/06
Jul 15/05
Jul 16/04
Au ust 15/03
2" Instalment
Se tember 27/07
Se tember 28/06
Se tember 29/05
Se tember 29/04
Se tember 26/03
*The 1 st instalment due date in 2003 was delayed until August due to late receipt of
information required to prepare the final billing.
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
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
Report CS 23-07
Date: June 11, 2007
Subject: 2007 Tax Rates and Final
09& Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 4
meeting. Staff's preliminary estimate for the final non-residential due date is October
12,2007.
Chanaes to the Billina 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 2007 Tax Rates and Final Instalment Due Dates for All
Realty Classes Except Non-Residential
Prepared By:
Approved I Endorsed By:
/J~dR~
Susan Aitl<tfuhead
Coordinator, Taxation Services
~~~~,~
Gillis A. Paterson>
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering Ci1~O
/.I
'7
'----
-----.-
i~\rTACHiVIEf'fr # L TO REPORT # C5 ?i3-07
THE CORPORATION OF THE CITY OF PICKERING
097
BY-LAW NO.
Being a By-law to adopt the estimates of all sums required to be
raised by taxation for the year 2007 and to establish the Tax
Rates necessary to raise such sums and 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 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. 36-2007 to
establish tax ratios and By-law 35-2007 to adopt estimates of all sums required by The
Regional Municipality of Durham for the Durham Region Transit Commission and By-
law 34-2007 to set and levy rates of taxation for Regional Solid Waste Management
and By-law No. 33-2007 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 2007 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 2007; and,
WHEREAS an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 6721-07) 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 2007, The Corporation of the City of Pickering (the "City") on April 2,
2007, approved Council Report CS 16-07 and corresponding schedules and
attachments as presented including the budgetary levy of $37,654,454 and
assessment growth of $367,366 for a total tax levy of $38,021,820.
098
2. For the year 2007, 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 2007.
4. The Tax Levy due dates for the Final Billing be July 11,2007 and September 27,
2007 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 18th day of June
2007.
David Ryan, Mayor
Debi Bentley, Clerk
099
By-law No /07
Schedule A
2007 Tax Rates
2007 City Region Education Total Pickering Region Education TOTAL
f2i8 Tax Rate Tax Rate Tax Rate Tax Rate Billina Billina J:!illir1g BILLING
Prooertv Class
Residential 7,896,962,499 0.00358903 0.00729721 0.00264000 0.01352624 28,342,440 57,625,794 20,847,981 106,816,215
Farm 72,491 ,740 0.00071780 0.00145945 0.00066000 0,00283725 52,035 105,798 47,845 205,677
Managed Forest 2,056,210 0.00089730 0.00182430 0.00066000 0.00338160 1,845 3,751 1,357 6,953
Pipelines 23,163,000 0.00441240 0.00897120 0.01586577 0.02924937 102,204 207,800 367,499 677,503
Multi-Residential 62,756,410 0.00669890 0.01362023 0.00264000 0.02295913 420,399 854,757 165,677 1,440,833
Commercial 701,199,583 0.00520410 0.01058096 0.01487553 0.03066059 3,649,113 7,419,365 10,430,715 21,499,193
Commercial - Excess Land 11,847,165 0.00364290 0.00740667 0.01041287 0.02146244 43,158 87,748 123,363 254,269
Commercial Vacant Land 7,269,000 0.00364290 0.00740667 0.01041287 0.02146244 26,480 53,839 75,691 156,010
Shopping Centres 296,350,542 0.00520410 0.01058096 0.01487553 0.03066059 1,542,238 3,135,673 4,408,371 9,086,282
Shopping Centres Excess Land 0.00364290 0.00740667 0.01041287 0.02146244 0 0 0 0
Office Building 40,529,245 0.00520410 0.01058096 0.01487553 0.03066059 210,918 428,838 602,894 1,242,651
Office Building Excess Land 0.00364290 0.00740667 0.01041287 0.02146244
Industrial 151,153,740 0.00811050 0.01649024 XXXXXXX XXXXXXX 1,225,932 2,492,561
Industrial Excess Land 3,122,685 0.00527180 0.01071887 XXXXXXX XXXXXXX 16,462 33,472
Industrial Vacant Land 28,651,000 0.00527180 0.01071887 XXXXXXX XXXXXXX 151,042 307,106
Large Industrial 23,963,240 0.00811050 0.01649024 XXXXXXX XXXXXXX 194,354 395,160
Large Industrial - Excess Land 1,291,760 0.00527180 0.01071887 XXXXXXX XXXXXXX 6,810 13,846
Parking Lot Full 0.00000000 0.00000000 0.00000000 0.00000000
Parking Lots Excess Land 0.00000000 0.00000000 0.00000000 0.00000000
Total 9322807819 35,985,431 73,165,508 37,071.393 146,222,333
Payments in Lieu Prooerties
Residential 100,755,395 0.00358903 0.00729721 0.00264000 0.01352624 361,614 735,233 265,994 1,362,842
Residential- Tax Tenant 57,339,895 0.00358903 0.00729721 0.00264000 0.01352624 205,795 418,421 151,377 775,593
Residential - General 49,023,810 0.00358903 0.00729721 0.00000000 0.01088624 175,948 357,737 533,685
Farm 56,578,600 0.00071780 0.00145945 0.00066000 0.00283725 40,612 82,574 37,342 160,528
Farm - Tax Tenant 15,531,400 0.00071780 0.00145945 0.00066000 0.00283725 11,148 22,667 10,251 44,066
Commercial Full 47,885,170 0.00520410 0.01058096 0.01487553 0.03066059 249,199 506,671 712,317 1 ,468,188
Commercial Full - Shared PIL 31,852,225 0.00520410 0.01058096 0.01487553 0.03066059 165,762 337,027 473,819 976,608
Commercial Full- Tax. Tenant 2,522,350 0.00520410 0.01058096 0.01487553 0.03066059 13,127 26,689 37,521 77,337
Commercial General 9,771,550 0.00520410 0.01058096 0.00000000 0.01578506 50,852 103,392 154,245
Commercial Full - Excess Land 515,270 0.00364290 0.00740667 0.01041287 0.02146244 1,877 3,816 5,365 11,059
Commercial Full - Excess Land Tenant 0.00364290 0.00740667 0.01041287 0.02146244
Commercial General Excess Land 1,419,550 0.00364290 0.00740667 0.00000000 0.01104957 5,171 10,514 15,665
Commercial Gen - Vacant Land 2,550,000 0.00364290 0.00740667 0.00000000 0.01104957 9,289 18,887 28,176
Commercial Vacant Land Full 0.00364290 0.00740667 0.01041287 0.02146244
Office Buildin9 Full - Shared PIL 7,738,945 0.00520410 0.01058096 0.01467553 0.03066059 40,274 81,885 115,121 237,261
Parking Lot 0.00000000 0.00000000 0.00000000 0.00000000
Industrial Full 0.00811050 0.01649024 XXXXXXX XXXXXXX
Industrial General 0.00811050 0.01649024 0.00000000 0.02460074
Industrial Full- Shared PIL 7,512.005 0.00811050 0.01649024 XXXXXXX XXXXXXX 60,926 123,875
Industrial Full- Tax Tenant 372,380 0.00811050 0.01649024 XXXXXXX XXXXXXX 3,020 6,141
Ind. Excess Land - Shared PIL 7,626,805 0.00527180 0.01071887 XXXXXXX XXXXXXX 40,207 81,751
Ind. Excess Land Tax Tenant PIL 329,620 0.00527180 0.01071887 XXXXXXX XXXXXXX 1,738 3,533
Industrial Excess Land Gen 0.00527180 0.01071887 XXXXXXX XXXXXXX
Industrial Vacant Land Full 0.00527180 0.01071887 XXXXXXX XXXXXXX
Industrial Vacant Land Gen 0.00527180 0.01071887 XXXXXXX XXXXXXX
Industrial Vacant Land Shared PIL 2,038,000 0.00527180 0.01071887 XXXXXXX XXXXXXX 10,744 21,845
Large Industrial Full. Shared PIL 71,963,635 0.00811050 0.01649024 XXXXXXX XXXXXXX 563,661 1,186,698
Large Ind. Excess Land - Shared PIL 1,028,885 0.00527180 0.01071887 XXXXXXX XXXXXXX 5,424 11,028
Total PILS 474,355,490 2,036,389 4,140,385 1,809,108 5,845,292
Grand Total 38,021,820 77,305,894 38,880,501 152,067,625