HomeMy WebLinkAboutCS 21/01
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REPORT TO COUNCIL
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: June 19,2001
REPORT NUMBER: CS 21-01
SUBJECT: 2001 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:
That it is recommended that report CS 21-01 of the Director, Corporate Services & Treasurer be
received for information and that:
1. the 2001 tax rates for the City of Pickering be approved as contained in Schedule A to By-
law No. 5856/01 attached hereto;
2. the attached By-law No. 5856/01, providing for the imposition of the tax rates approved
under Recommendation 1 above, be read three times and approved;
3. the tax levy due dates for the Final Billing be September 14, 2001 and October 15, 2001
excluding the industrial, multi-residential and commercial realty tax classes;
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4. the Director of 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;
5. the Director of Corporate Services & Treasurer be authorized to make any changes to the
final tax rates to comply with Provincial regulations; and,
6. the appropriate staff of the City of Pickering be given authority to give effect thereto.
ORIGIN:
Director, Corporate Services & Treasurer
AUTHORITY:
The Municipal Act, R.S.O. 1990, as amended, and Regulations
The Assessment Act, R.S.O. 1990, as amended, and Regulations
The Education Act, R.S.O. 1990, as amended, and Regulations
FINANCIAL IMPLICATIONS:
Not applicable
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Report to Council CS 21-01
Date: June 19,2001
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Subject: 2001 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
Page 2
EXECUTIVE SUMMARY:
Adoption of the above recommendations and the attached By-law provides for the levying of tax
rates required to raise the levy approved in the 2001 Current Budget ofthe City of Pickering and
to levy tax rates for education and for the Region of Durham.
BACKGROUND:
The 2001 final tax billing process will consist of two separate components:
1. residential properties; and,
2. commercial, industrial and multi-residential realty classes.
City's Net Tax Levy and Tax Rate Increase
On May 22, 2001, City Council approved Report CS 12-01 of the Director of Corporate
Services & Treasurer that provided for a tax levy of $24,628,816 resulting in a tax increase of
9.8%. This increase is applied to the "City portion" of the property tax bill. At the time the
budget was passed, Corporate Services staff were waiting for the various taxation policy issues to
be resolved at the upper tier level and therefore, were not in a position to calculate the 2001 tax
rates.
Hard Cap and its Impact on Tax Rates
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On February 5, 2001, the Director of Corporate Services & Treasurer provided a report that
outlined the significant changes associated with the management of taxation and policy due to
the Province passing Bill 140 (Continued Protection for Property Taxpayers Act.) One of the
more interesting tortuous twists ofthis bill was the introduction of the "Hard Cap."
The hard cap concept only applies to the multi-residential, industrial and commercial realty tax
classes. The hard cap concept is a taxation rule that determines if a municipal budgetary increase
can be passed onto a realty tax class. The hard cap tax rule is if the tax ratio for the realty tax
class is above the Provincial average (as determined by the Province) then the municipal
budgetary increase can not be flowed to that tax class. For the City of Pickering and Durham
Region, the industrial realty tax class family (including large industrial) had a tax ratio of 2.98
which was above the Provincial Average of2.63. Therefore, the City of Pickering's municipal
budgetary increase of9.8% that translated into an increase of$155,000 for the industrial tax class
could not be passed to this realty tax class and has to be collected from the other property classes.
The residential tax class would absorb approximately 76% of the hard cap cost with the balance
being absorbed by the other classes, ego multi-res and commercial.
2001 Tax Rates & Property Taxes
The final 2001 tax rates are submitted to Council for approval in the form of the 2001 Tax Levy
By-law (Appendix A). Table one below, provides a comparison of the property taxes to be
levied on an residential property assessed at $200,000 for 2000 and $224,040 for 2001. The
median increase in residential assessment due to the change in valuation dates from June 1996 to
June 1999 was 12.02%. The arithmetical average increase due to re-assessment was 13.80%. A
residential property that has an increase of less than 12.02% in CV A, will experience a smaller
increase than that shown below as a result of the re-assessment.
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Report to Council CS 21-01
Date: June 19, 2001
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Subject: 2001 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
Page 3
Table One
2000 & 2001 Residential Property Taxes
2000 2001 INCR INCR.
$200,000 $224,040 $ %
ASSESSMENT ASSESSMENT
City $708.25 $777.09 $68.74 9.72
Region 1,476.29 1,580.15 103.85 7.03
Education 828.00 835.67 7.67 0.93
Total $3,012.54 $3,192.81 $180.36 5.99
Overall, the combined 2001 residential taxes for City of Pickering residents will increase by
$180.36 or 5.99% for a household assessed at $224,040 that had an increase in their CV A of
12.02%. The 2001 budget tax levy increase was approved by Council at 9.8%. The average
increase in residential assessment was 13.8%. However, the median (mid point) of the
assessment increase where half are higher and half are lower was 12.02%. Staff fee that this is
the better number ot use as the "skewing" effects oflarge increases in vacant land and golf
courses are somewhat mitigated. Therefore, using the 12.02% for the residential analysis results
in a more representative increase of9.72%.
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It is interesting to note, that the education tax rate as established by the Province is not revenue
neutral for Pickering residents. When the Province reduced its education tax rate to offset the
impact of re-assessment, the reduction was calculated on a Province wide basis to create a
revenue neutral position. However, because Pickering's re-assessment was above the Provincial
average, the reduction in the education rate was insufficient to create a revenue neutral position.
There has been a decrease in the 2001 tax rates in comparison to 2000 due to re-assessment.
The residential tax rates for 2000 and 2001 is outlined below.
Table Two
2000 & 2001 Residential Tax Rates
2000 2001 % Chanl!:e
City of Pickering .00354124 .00346855 -2.05
Region of Durham .00738148 .00705298 -4.45
Education* .00414000 .00373000 -9.90
Total .01506272 .01425153 -5.38
* The Province is responsible for setting the education tax rate.
The following two diagrams, illustrates the sharing of the property tax bill between the City,
Region of Durham and School Boards.
Commercial
Residential
56.2%
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49.5%
Report to Council CS 21-01
Date: June 19,2001
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Subject: 2001 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
Page 4
Standardized Tax Bill
The Province recently passed regulations mandating certain information and format requirements
for the final 200 I property tax bills. In addition to the standardized tax bill, municipalities are
required to provide ratepayers with a schedule explaining the change in their tax bilL
The City of Pickering's standard tax bill meets the mandated information as outlined in Ontario
Regulation 75/01 and most recently amended by Ontario Regulation 170/01 of the Municipal
Act. However, the City of Pickering's tax bill has to be changed in order to meet the Provincial
requirement of providing an explanation of tax changes. Attachment 2 contains the Provincial
mandated "explanation of changes schedule" for the residential and non residential tax classes.
(The difference between the two schedules is that non residential schedule contains information
requirements for capping.)
The Province is currently programming their Online Property Tax Analysis (OPTA) database to
accommodate the non residential information requirements. However, these programming
changes are not being implemented for the residential tax class and therefore, municipalities will
be left on their own to complete the information requirements of this schedule.
Tax Due Date Installments
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Recommendation 3 provides for the due dates for the payment of residential taxes being
September 14,2001 and October 15, 2001. The traditional June installment date is delayed until
mid September mainly due to the changes in the tax bills mentioned above. Computer
programming, printing and information changes have to be designed and implemented. City of
Pickering has recently received version 5.0 of its tax software that is required to do the final tax
billing.
Staff are currently loading the software into the tax test environment. If the new version is stable
and passes all of the control checks, it will be then loaded into the production environment. The
new version of the software will produce an extract file that can be used to produce a tax bill.
The City of Pickering currently contracts out the printing of its tax bills to the Royal Bank. The
Royal Bank has scheduled a meeting during the first week of July with its various municipal tax
printing customers to design a standard bill that will meet the requirements of the Provincial
regulations. The Royal Bank has informed staff that they require 60 days to reprogram their
computer systems. On June 11, 2001, the Royal Bank received from our software vendor a
computer file with the proposed new layout that is to be used by their system to produce the tax
bills.
In order to meeting the Provincial billing requirements of 21 days notice, the tax bills have to be
in the mail by August 24th. If the tax bills can be produced earlier, the due dates would change
to August 29th and September 26th in which case an information report would be brought to
Council on August 7, 2001 informing of the changes in the due dates.
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Report to Council CS 21-01
Date: June 19,2001
,..
Subject: 2001 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
Page 5
Other
Recommendations 1 and 2 provide for the levying of all tax rates on all classes of property even
though the non residential properties 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.) Staff will bring a separate report to
Council regarding the tax billing of non residential realty classes. If staff are in a position to
print the bills by mid August, then the due dates for the non-residential tax class would be
September 14, 2001 and October 15,2001 the same as residential.
Recommendations 4 and 5 will allow the Director of Corporate Services & Treasurer some
latitude, limited by Provincial legislation, in effecting whatever may be necessary in order to
ensure the taxes are billed properly and in a timely fashion.
ATTACHMENTS:
1. 2001 Tax Rate By-Law
2. Provincial (mandated) Explanation of Changes Schedules
Prepared By:
Approved I Endorsed By:
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Gillis A. Paterson,
Director, Corporate Services & Treasurer
Stan Karwowski,
Manager, Financial Services
GAP:vw
Attachments
Recommended for the consideration of Pickering
City Council
Thomas J. Quinn, Chief Administrative Officer
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ATTACHMENT#-L- TO REPORT # CS.;Jj-OJ
THE CORPORATION OF THE CITY OF PICKERING
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BY-LAW NO. 5856/01
Being a by-law to adopt the estimates of all sums required to be
raised by taxation for the year 2001 and to establish the Tax Rates
necessary to raise such sums.
WHEREAS it is necessary for the Council of The Corporation of the City of Pickering,
pursuant to the Municipal Act, R.S.O. 1990, ch.M.45, 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 No. 47-2001 to
establish tax ratios and By-Law 42-2001 to adopt estimates of all sums required by The
Regional Municipality of Durham for the purposes of the Regional Corporation and By-
Law 45-2001 to set and levy rates of taxation for Regional Solid Waste Management and
By-laws No. 44-2001 to set and levy rates of taxation for Regional General Purposes and
set tax rates on Area Municipalities; and,
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WHEREAS the Regional Municipality of Durham has provided the 2001 education tax
rates for the various realty classes; and,
WHEREAS sub section 392(4) and (5) of the Municipal Act, as amended, permits the
issuance of separate tax bills for separate classes of real property for 2001; and,
WHEREAS an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 5802/01) 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 2001, The Corporation of the City of Pickering (the "City") shall
levy upon the Property Classes set out in Schedule "A", the rates oftaxation 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".
2. The levy provided for in Schedule "A" shall be reduced by the amount of the
interim levy for 2001.
3. The Tax Levy due dates for the Final Billing be September 14,2001 and October
15,2001 for all classes excluding the non residential tax classes.
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4.
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 ofPickering that all remaining sections and portions of this By-law and of Schedules
"A" continue in force and effect.
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5. This By-law comes into force on the date of its final passing.
BY-LA W read a first, second and third time and finally passed this
day ofJune, 2001.
Wayne Arthurs, Mayor
Bruce Taylor, Clerk
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By-law No. 5158101
Schedw. A
200' ToRa..
2001 City Roljon e<b:llllon Tolol p- Region e<b:lltion TOTAL
QIl, - - - - JllIJila om llJJIng llJJ.I.Ill!i
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Ruidential & Farm 5,2OB,148,3:!S 0.00346855 0.00705298 0.00373000 0.01425153 S 18,064.724 S 36.732,988 S 19,426,393 . 74,22".083
Multi-Residential 44,336,075 0.0086367 0.01758192 0.00373000 0.02992882 382,917 n8,627 165,374 1,326,918
Comrnettial 406,472,722 0.005104005 0.0104518 0.02003928 0.035153111 2,089,290 4,248,372 8,145,413 14,483,074
Corrmerdal-General 3,54&,818 0.00514005 0.0104518 XXXXXXX 0.01559185 18,241 37,M2
COfTYl18fCial . Excess land 2,914.251 0.00359504 0.1)(1731608 0.0140278 0.024~190 10,_ 21,321 .40,881 72,687
Commen:::iaf Vacant land 9,749,380 0.00359804 0.00731808 0.0140278 0.02494190 35,079 71,327 136,762 243,168
Shoppino Centm 211,827,441 0.00418932 0.00851858 0.01833289 0.02004058 881,413 1,804,_ 3,459,712 8,151,594
Shopping Centres Vacant 227,825 0.00293253 0.005ge329 0.01143343 0.02032925 ... 1.357 2,603 4,627
Office Buiking 4,877,650 0.00796379 0.01619364 0.03104807 0.05520550 37,252 75,748 145,232 258,232
OffICe Buiking Excess Land 493,970 0.0D557485 0.01133555 0.02173385 0038&<385 2,154 S,... 10,738 19,()8g
tndusbial 113,358,589 0.00711331 0.01503359 0.02811257 0.04&25947 808,341 1,704,158 2J1I50,032 5.470.529
Indualrial Vacant 3,183,oet 0.00462385 0.009n204 0.01807352 0.03138921 14,717 31,105 54,028 99,850
Industrial V...nt Land 27,988,178 0.004623&5 0.00977204 0.01897352 0.0313021 129,398 273,482 475,024 877,904
Large Indus1riaI 22,390,951 0.01137801 0.02404257 0.0417807 0.07717928 254,720 538,336 935,0152 1,728,117
Large Inclus1rial Vacant 0.00739441 0.01562767 0.02714445 0.050t8853
Panting Lot 1,225,000 0.00514005 0.01045180 0.02003928 0.03563111 6,297 12,803 24,548 "3,84a
Pipelines 19,894,000 0.00428424 0.00867093 0.01730720 0.03024237 84,833 172.499 "',309 601,842
Farmlands 38,042,350 0.00088714 0.00178325 0.00093250 0.00358289 32,_ 67,078 35,474 135,541
Managed Fontsts 1851100 0.00086714 0.00176325 0.1)0093250 0.00356289 ~~~ 6.505
To'" 6120325494 $ 22,m,721 $ 48,579,802 $ 38,383308 $ 105 747,299
pavments in Ueu ProD8l1ies
Rlllaidentiat & Farm Full 11&,434,751 0.......... 0.00705298 0.00373000 0.01425153 S 403,880 . 821,212 . 434.302 S 1,659,373
Residential & Farm Tax. Ttnant 66.237,814 0.00346855 0.00705298 0.00373000 0.01425153 229,749 467,174 696,923
Residential & farm Gen 37,811,eae 0.......... 0.00706296 XXXXXXXX 0.01052153 131,152 266.665 397,637
Multi-Residential Full 3.214,000 0.0086367 0.01756192 0.00373000 0.02992862 27,758 56,4<<1 11,988 98,191
CClITWT1EttCiaI Full 39,612,479 0.00514005 0.0104518 0,02003926 0.03583111 203,610 414,022 793.805 1,411,437
CotTrne~ Full. Shared PIL 30,512,860 0.00514005 0.0104518 0.02003926 a.035e3111 156,1S38 318,914 611,455 1,087,207
Corrmeleial Full- Tax. Tenant 1,540,017 0.0051400S 0.0104518 0.02003926 0.03563111 7,918 18,096 30,861 54,873
CorTYneltial Gen 3,046.n1 0.00514005 0.0104518 XXXXXXXX 0.01559185 15,661 31.844 47,505
Corrmel"Cl~ Full- Excess land 7,473,435 0.00359804 0.00731806 0.0140278 0.02494190 28,890 54,676 104,836 188.402
Corrwnercial Gen - Vacant Land 1,881,000 0.00359804 0.00731806 XXXXXXXX 0.01091410 6,046 12.298 16,347
Commercial Vacant Land Full 0.00359804 0.00731805 0.0140278 0.02494190
Office Building Full. Shared P1L 14,483,125 0.00798379 0.01619364 0.03104807 0.05520550 115,181 234,211 449,052 798,444
Office Buiklng G.n 0.007i6379 0.01819364 XXXXXXXX 0.02415743
Office BUilcin9 Vaeant Full 0.00557465 0.01133555 0.02173385 0.03884385
0I'fice Building Vacant Gen 0.00557485 0.01133555 xxxxxxxx 0.01891020
Indwltrial Full 1,113,788 0.00711331 0_01503359 0.02811257 0.04825947 7,923 18.744 29,_ 53,751
Industrial Gen 903,827 0.00711331 0_01503359 XXXXXXXX 0.02214690 6,429 13,588 20.017
Industrial Full- Shared PIL 645,710 0.00711331 0.01~3359 0.02811257 0.04825a47 4,593 9,707 16,861 31.162
- Industrial Full- Tax Tenant too,440 0.00711331 0.01503359 0.026112S7 0.04825947 71. 1,510 2,823 4.847
Ind. Exca.. Land - Shllred PIL 5,808,407 0.00462365 0.OOin204 0.01697352 0.0313Gi21 26,856 56,760 98.589 182.205
Industrial Vacant Gen 238,000 0.00482365 0.OO9n204 XXXXXXXX 0.Ot43i559 1,100 2,328 3,-428
Industrial Vacant Land Full 0.00462365 0.00977204 0.01697352 0.03136921
Industlial Vacant Land Gen O.CI04G2385 0_OO9nZ04 XXXXXXXX 0.01439589
Large Industri.1 Full. Shared PIL 33,869,760 0.01137801 0.02404257 0.0417807 0.On17928 38S,303 814,317 1,414.428 2,6t4.045
Latge Industrial Gen 0.01137601 0_02404257 XXXXXXXX 0.03541858
Large Ind. Exceu Land. Shared PlL 1,551.045 0.00739441 0,01582767 0.02714445 0.05016653 11.513 24,333 42,285 78,112
P8f'klng Lot Full 0.00514005 0.0104518 0.02003926 0.03563111
PatlUng lot Gen 0.00514005 0.0104518 XXXXXXXX 0.01559185 - - -
Tola! P1LS 386.264,935 $ 1,769,095 $ 3,632,861 $ 4,040,146 $ 9,442,102
Total Asaeument
8,486,590,429
$ 24,628,818 $ 50212,463 ~ $ 115,189,401
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payments in lieu of taxes a11he General Ralll exdudesttte education tax rate componant
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oeJ20!2001
Planb_bylaw_schedule.x1s
ATTACHMENT#L. TOREPORT#~~I-O,
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O. Reg. 75/01
THE ONTARIO GAZEITE / LA GAZETIE DE L 'ONTARIO
Schedule 2
EXPLANATION OF TAX CHANGES
.".,...,
Explanation of Tax Changes
yyyy To YYYY
I Property Class (es) l.l I
Municipiility
1.2
Assessment Roll No.
1.3
1.4
1.5
1.6
Final YYYY Taxes Final YYYY Taxes
I 2.1 I I 2.2 I
Total year over Year Change
I 2.3 I
Explanation of Tax Changes
Final YYYY Taxes: 3.1
* YYYY Annualized Taxes; 3.2
YYYY Local Municipal Levy Change: 3.3
YYYY Upper-Tier Municipal Levy Change: 3.4
YYYY Provincial Education Levy Change: 3.5
YYYY Tax Change Due to Reassessment: 3.6
**Final YYYY Taxes: 3.7
* An annualized tax figure is used in this analysis to compensate for mid-year adjustments in tax treatment or assessment value. Ifa
property did not have any mid-year adjustments, the annualized taxes should equal the Final YYYY Tax amount listed above.
**Final tax amount applies only to the property or portiones) of property referred to in this notice.
.
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O. Reg. 75/01
THE ONTARIO GAZEITE /LA GAZElTE DE L'ONTARIO
Schedule 3
EXPLANATION OF PROPERTY TAX CALCULATIONS
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'Explanation of Tax Calculations
YYYY Taxation Year
I Property Class (es) I.l I
Municipality
1.2
Roll No.
1.3
1.4
1.5
1.6
Total YYYY CVA Taxes Final Taxes
I 2.1 I I 2.2 I
Calculation for Final Taxes
YYYY CV A Taxes 3.1
*YYYY Annualized Taxes 3.2
yyyy Tax Cap Adjustment 3.3
YYYY Provincial Education Levy Change 3.4
YYYY Municipal Levy Change 3.5
..Final YYYY Taxes 3.6
· An annualized tax figure is used in this analysis to compensate for mid-year adjustments in tax treatment or assessment value. Ifa
property did not have any mid-year adjustments, the annualized taxes should equal the Final yyyy Tax amount listed above.
..Final tax amount applies only to the property or portion(s) of property referred to in this notice.
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