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Home My WebLink AboutCS 12-02 Ciú/ 0# 043 REPORT TO COUNCIL FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: May 28, 2002 - REPORT NUMBER: CS 12-02 SUBJECT: 2002 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 12-02 of the Director, Corporate Services & Treasurer be received for information and that: . 1. the 2002 tax rates for the City of Pickering be approved as contained in Schedule A to By- law No.5992/02 attached hereto; 2. the attached By-law No. 5992/02, 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 July 15, 2002 and September 16, 2002 excluding the industrial, multi-residential and commercial realty tax classes; - 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, RS.O. 1990, as amended, and Regulations The Assessment Act, RS,O. 1990, as amended, and Regulations The Education Act, RS.O. 1990, as amended, and Regulations - FINANCIAL Th1PLICA TIONS: Not applicable Report to Council CS 12-02 Date: May 28, 2002 044 Subject: 2002 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 2002 CUITent Budget ofthe City of Pickering and to levy tax rates for education and for the Region of Durham. BACKGROUND: The 2002 final tax billing process will consist of two separate components: 1. 2. residential properties; and, commercial, industrial and multi-residential realty classes. City's Net Tax Levy and Tax Rate Increase On April 2, 2002, City Council approved Report CS 05-02 of the Director of Corporate Services & Treasurer that provided for a tax levy of $27,249,107 resulting in an overall tax increase of7.66%. This increase is applied to the "City portion" of the property tax bill. 2002 Tax Rates & Property Taxes The final 2002 tax rates are submitted to Council for approval in the form of the 2002 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 2001 and 2002. - Table One 2001 & 2002 Residential Property Taxes 2001 2002 INCR INCR. $200,000 $200,000 $ % ASSESSMENT ASSESSMENT City $693,71 $751.12 $57.41 8.28 Region 1,410,59 1,461.80 51.21 3.63 Education 746,00 746.00 Total $2,850.30 $2,958.92 $108.62 3.81 Overall, the combined 2002 residential taxes for City of Pickering residents will increase by $108,62 or 3.81% for a household assessed at $200,000. (The residential education rate is established by the Province,) Known Impact of Tax Policy (Ratio Changes) - This year, the Region of Durham reduced the tax ratio's for the following property classes: large industrial, office building and multi-residential. In addition the Region also increased the tax ratio for the shopping center class. The net effect ofthese tax ratio changes was to shift more of the financial responsibility to the residential tax class. Therefore, the 8,28% increase in property taxes is due to a budgetary increase of7.66% and tax ratio shift of 0,62% , Report to Council CS 12-02 Subject: 2002 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 Date: May 28, 2002 04.5 Page 3 Unknown Impact of Tax Policy Changes - The City of Pickering is able to retain the education portion of non -residential Payment-in-lieu (PIL) properties, For PIL residential properties, the City does not keep the education taxes except for the Federal Airport Lands. The City's largest PIL property is the Ontario Power Generation nuclear facility. For this property, the estimated 2002 education taxes (before tax policy changes) is approximately $1.4 million. This property's assessment is approximately $99.5 million consisting ofthe following: $59.1 million -large industrial tax class; $20,7 million - commercial tax class and $19.6 million in the office building class, When the Region of Durham reduced the tax ratio for the large industrial and office building class - it also reduced the corresponding property tax education rate for these tax classes. The preliminary revenue loss for education PILs is approximately $250,000 and could be higher. As of May 29,2002, taxation staff have not yet received the education tax rates from the Region for the non residential tax classes, (The Region of Durham is responsible for the calculation of the education tax rates for the various classes,) The reason for the delay is due to the fact the Province has not yet finalized the regulation requied for the calculation of the education rates. Regional staff have asked the Province to "fast track" the issuance ofthe regulation. The education tax rates have to be approved by Regional Council and it is anticipated that the Region will approve these rates in their last meeting in June. Tax Due Date Installments - Recommendation 3 provides for the due dates for the payment of residential taxes being July 15, 2002 and September 16, 2002. Last year the residential due dates were September 14 and October 15 due to delays while the Province implemented the "standaridized tax bill.", In order to meeting the Provincial billing requirements of 21 days notice, the tax bills have to be in the mail by June 24th, 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 detennined and we staff are waiting for the educational taxes for the non-residentail tax class. 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 tax billing of non residential realty classes hopefully for Council's summer meeting, Staffs preliminary estimate for the final non- residential due dates are: September 27, 2002 and October 29,2002, 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. - A TT ACHMENTS: 1. 2002 Tax Rate By-Law Report to Council CS 12-02 Date: May 28, 2002 046 Subject: 2002 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 Prepared By: Approved / Endorsed By: .4~~ c -----~--.. ,~ß~ Gillis A. Paterson, Director, Corporate Services & Treasurer - Stan Karwowski, Manager, Finance & Taxation GAP:vw Attachments Recommended for the consideration of Pickering City Council d - - 047 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 5992/02 - Being a by-law to adopt the estimates of all sums required to be raised by taxation for the year 2002 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, RS.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, RS.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. 22-2002 to establish tax ratios and By-Law 21-2002 to adopt estimates of all sums required by The Regional Municipality of Durham for the purposes of the Regional Corporation and By- Law 25-2002 to set and levy rates of taxation for Regional Solid Waste Management and By-law No. 23-2002 to set and levy rates of taxation for Regional General Purposes and set tax rates on Area Municipalities; and, - WHEREAS the Regional Municipality of Durham has provided the 2002 education tax rates for the residential realty classes; and, WHEREAS sub section 392(4) and (5) of the Municipal Act, as amended, pennits the issuance of separate tax bills for separate classes of real property for 2002; and, WHEREAS an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 5951/02 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 2002, The Corporation of the City of Pickering (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, - 2. The levy provided for in Schedule "A" shall be reduced by the amount of the interim levy for 2002, 3. The Tax Levy due dates for the Final Billing be July 15, 2002 and September 16, 2002 for all classes excluding the non residential tax classes. 0484. - - - 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. 5. 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 day of June, 2002, Wayne Arthurs, Mayor Bruce Taylor, Clerk n49 By.Law No. 5992/02 Schedule A 2002 Tax Rates 2002 City Region Education Total Pickering Region Education TOTAL çyp, Tax Rate Tax Rate Tax Rate Tax Rate m!!!oo m!!!oo m!!!oo BILLING Properly Class Residential & Farm 5,325.279,272 0.00375559 0.00730904 0.00373000 0.01479463 $ 19,999,537 $ 38,922,679 $ 19,863.292 78.785,507 Multi-Residential 47,550,075 0.00901342 0.0175417 0.00373000 0.03028512 428,589 834,109 177,362 1,440,060 Commercial 428,127,130 0.00558541 0.01083126 2,382,703 4,637,158 7.019,859 Commercial-General 3,523,818 0.00558541 0.01063126 XXXXXXX 19,611 38,167 57,779 - Commercial - Excess Land 7,642,732 0.00389579 0.00758167 29,774 57,945 87,719 Commercial Vacant Land 9,185,000 0.00389579 0.00758167 35,783 69,638 105,420 Shopping Centres 208,737,885 0.00499493 0.00972102 1,042,631 2,029,145 3,071,776 Shopping Centres Excess Land 227,625 0.00349645 0.00680471 796 1,549 2,345 Office Building 9,903,976 0.00558541 0.01063128 55,120 107,273 162,392 Office Building Excess Land 69,612 0.00389579 0.00758167 271 528 799 Industrial 107,660,793 0.00648888 0.01851697 913,704 1,778,230 2,691,934 Industrial Excess Land 4,448,911 0.00551647 0.01073625 24,542 47,785 72,307 industriai Vacant Land 24,212,000 0.00551647 0.01073625 133,565 259,946 393,511 Large Industrial 22,390,951 0.01089121 0.02119622 243,865 474,604 718,488 Large Industrial - Excess Land 408,240 0.00707929 0.01377754 2,876 5,597 8,473 Parking Lot Full 67,000 0.00556541 0.01063126 373 726 1,099 Parking Lots Excess Land 1,158,000 0.00389579 0.00758187 4,511 8,780 13,291 Pipelines 20,088,000 0.00461712 0.00898573 92,749 180,505 273,254 Farmlands 44,162,800 0.00093890 0.00182727 0.00093250 0.00369867 41,464 80,697 41,182 163,344 Managed Forests 1,928590 0.00093890 0.00182727 0.00093250 0.00369867 1,811 3,524 1,798 7,133 Total 6.266770410 $ 25,454,275 $ 49,538,562 $ 20,083,634 95,076,471 Payments in Lieu Properues Residential & Farm Full 107,596,946 0.00375559 0.00730904 0.00373000 0.01479463 404,090 $ 786,430 $ 401,337 1,591,857 Residential & Farm Tax. Tenant 58,943,980 0.00375559 0.00730904 0,00373000 0.01479463 221,369 430,824 $ 219,861 872,054 Residential & Farm Gen 36,751,632 0.00375559 0.00730904 XXXXXXXX 0.01106463 138,025 268,621 408,645 Commercial Full 37,586,852 0.00556541 0.01083126 0 209,186 407,113 616,299 Commercial Full - Shared PIL 21,228,820 0.00556541 0.01083126 0 118,147 229,935 348,082 Commercial Full. Tax. Tenant 1,724,857 0.00556541 0.01083126 0 9,600 18,882 28,282 Commercial Gen 2,114,778 0.00556541 0.01083126 XXXXXXXX 0.01639667 11,770 22,906 34,875 Commercial Full - Excess Land 7,647,728 0.00389579 0.00758187 0 30,573 59,499 90,072 Commercial Gen. Vacant land 1,965,000 0.00389579 0.00758167 XXXXXXXX 0.01147748 7,655 14,898 22,553 Commercial Vacant Land Full 0.00389579 0.00758187 0 Office Building Full. Shared PIL 19,811,375 0,00558541 0.01083128 0 109,145 212,416 321,561 Office Building Gen 0.00556541 0.01083126 XXXXXXXX 0.01639667 Office Buildin9 Vacant Full 0.00389579 0.00758167 0 Office Building Vacant Gen 0.00389579 0.00758167 XXXXXXXX 0.01147746 industrial Full 896,945 0.00648888 0.01851697 0 7,612 14,815 22,427 Industrial Gen 0.00648688 0.01651697 XXXXXXXX 0.02500385 - Industrial Full- Shared Pll 9,807,652 0.00948888 0.01851697 0 83,236 161,993 245,229 Industrial Full- Tax Tenant 100,440 0.00848688 0.01651697 0 852 1,659 2,511 Ind. Excess Land - Shared PIL 6,712,237 0.00551647 0.01073625 0 37,028 72,064 109,092 Industrial Vacant Gen 0.00551647 0.01073625 XXXXXXXX 0.01625272 Industrial Vacant Land Full 1,220,500 0.00551647 0.01073625 0 6,733 13,104 19,836 Industrial Vacant Land Gen 37,500 0.00551647 0.01073625 XXXXXXXX 0.01625272 207 403 809 Large Industrial Full. Shared Pll 36,331,950 0.01089121 0.02119622 0 395,699 770,100 1,165,799 Large Industrial Gen 0.01089121 0.02119622 XXXXXXXX 0.03208743 Large Ind. Excess Land - Shared PIL 551,540 0.00707929 0.01377754 0 3,905 7,599 11,503 Parking Lot Full 0.00558541 0.01083126 0 Parking Lot Gen 0.00558541 0.01083126 XXXXXXXX 0.01639667 Total PILS 351,030,932 1,794,832 $ 3,493,059 $ 621,198 5,909,089 Total Assessment 6,617,801,342 $ 27.249,107 $ 53,031,621 $ 20,704,831 $ 100,985,560 Footnotes Payments in lieu of taxes at the General Rate excludes the education tax rate component. The education rates for the non-residential realty tax classes will be reflected in the final billing report for these classes. - 615/2002 Region_bylaw_schedule _202 -)4 c t ..';;¿ .- RECOMMENDA TION OF THE COMMITTEE OF THE WHOLE DATE MOVED BY SECONDED BY That Report CS 12-02 of the Director, Corporate Services & Treaswer, regarding 2002 Tax Rates be received for information; and . 1. That the 2002 tax rates for the City of Pickering be approved as contained in Schedule A to By-law #5992/02 attached hereto; and 2, That the attached By-law #5992/02, providing for the imposition of the tax rates approved under Recommendation 1 above, be read three times and approved; and - 3, That the tax levy due dates for the Final Billing be July 15, 2002 and September 16, 2002 excluding the industrial, multi-residential and commercial realty tax classes; and 4, That 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; and 5. That the Director of Corporate Services & Treasurer be authorized to make any changes to the final tax rates to comply with Provincial regulations; and 6. That the appropriate staff of the City of Pickering be given authority to give effect thereto. -