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HomeMy WebLinkAboutFIN 11-23Report to Council Report Number: FIN 11-23 Date: April 24, 2023 From: Stan Karwowski Director, Finance & Treasurer Subject: 2023 Tax Rates and Final Tax Due Dates for All Tax Classes - File: F-4200-001 Recommendation: 1. That Report FIN 11-23 of the Director, Finance & Treasurer regarding the 2023 tax rates be received; 2. That the 2023 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 June 27, 2023 and September 27, 2023; 4. That the attached By-law be approved; 5. 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 6. 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 2023 Current Budget, if adopted as amended, of the City of Pickering and to levy taxes for School Boards and for the Region of Durham. They also set the property tax final due dates for all property classes. With the expiry of any capping or claw back provisions, effective 2023, all tax classes will be billed at this time. Financial Implications: Adoption of the Recommendations and enacting the By-law will allow the City to bill the Final 2023 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. FIN 11-23 April 24, 2023 Subject: 2023 Tax Rates and Final Tax Due Dates Page 2 ______________________________________________________________________ Discussion: City’s Net Tax Levy and Tax Rate Increase The 2023 Current and Capital Budgets, if adopted as amended, will result in a property tax levy increase of 7.99 percent over last year which translates into a 2.44 percent 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 5.31 percent on the total residential property tax bill. The City’s 2023 budget levy will be $82,162,832 plus assessment growth of $1,911,000 which translates into a total property tax levy of $84,073,832. 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. New for 2023 is the ability to bill the non-residential tax classes (commercial, industrial and multi-residential) at the same time as the residential classes. Previously, the Province of Ontario set a limit or “cap” on non-residential property taxes. As a result, the City could not bill these properties until much later in the year and provided only one final due date. This protection has now been completely phased out and the City does not have to defer the final billing. This alignment with the residential billing will benefit non- residential taxpayers by providing more instalments and assist with their budgeting. It will also assist the City with cash flow and investment income. Tax Due Date Instalments Recommendation three sets the due dates for the payment of property taxes at June 27, 2023 and September 27, 2023. Communication Strategy In addition to mailing the tax bills, the City will advertise the tax instalment due dates on the City’s webpage, the Pickering News Advertiser and any other communication channels deemed appropriate by the Director, Finance & Treasurer, prior to each tax due date. Other Recommendations two and three provide for the levying of all tax rates on all classes of property FIN 11-23 April 24, 2023 Subject: 2023 Tax Rates and Final Tax Due Dates Page 3 ______________________________________________________________________ Attachment: 1. By-law to Establish the 2023 Tax Rates and Final Instalment Due Dates for All Realty Classes 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 11-23 The Corporation of the City of Pickering By-law No. Being a by-law to adopt the estimates of all sums required to be raised by taxation for the year 2023 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 16-2023 to establish tax ratios, By-law 18-2023 to adopt estimates of all sums required by The Regional Municipality of Durham for the Durham Region Transit Commission, By-law 19-2023 to set and levy rates of taxation for Regional Solid Waste Management, and By-law 17- 2023 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 2023 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 2023; and, Whereas an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law 01-23 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 2023, The Corporation of the City of Pickering (the “City”) on April 24, 2023 approved Council Report FIN 09-23 and corresponding schedules and attachments as presented, resulting in a taxation levy of $84,073,832. By-law No. Page 2 2. For the year 2023, 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 2023. 4. The Tax Levy due dates for the Final Billing be June 27, 2023 and September 27, 2023 for all classes. 5. 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. 6. 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. 7. 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. 8. For the year 2023, the City shall levy upon designated Universities and Colleges an annual tax at the prescribed amount for each full-time student enrolled in the university or college, as determined by the Minister of Training, Colleges, and Universities, payable on or after July 1st in accordance with section 343 of the Municipal Act. 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. Page 3 By-law passed this 24th day of April, 2023. ______________________________ Kevin Ashe, Mayor ______________________________ Susan Cassel, City Clerk Tax Calcs 2023 Budget Tax Levy 84,073,832 2023 Calculated Tax Rates 2023 Tax Weighted City Region Education Total C Phase-In Ratios Assmt Tax Rate Tax Rate Tax Rate Tax Rate Property Class Residential 18,068,802,216 1.0000 18,068,802,216 0.00362086 0.00645519 0.00153000 0.011606 Farm 155,482,100 0.2000 31,096,420 0.00072417 0.00129104 0.00038250 0.002397 Managed Forest 5,683,200 0.2500 1,420,800 0.00090522 0.00161381 0.00038250 0.002901 Pipelines 32,563,000 1.2294 40,032,952 0.00445149 0.00793601 0.00880000 0.021187 T Multi-Residential 193,250,300 1.8665 360,701,685 0.00675834 0.01204862 0.00153000 0.020336 New Multi Res - 1.1000 - 0.00398295 0.00710071 0.00153000 0.012613 Commercial 1,345,743,583 1.4500 1,951,328,195 0.00525025 0.00936003 0.00880000 0.023410 Commercial - Excess Land 24,535,965 1.4500 35,577,149 0.00525025 0.00936003 0.00880000 0.023410 Commercial Vacant Land 32,099,300 1.4500 46,543,985 0.00525025 0.00936003 0.00880000 0.023410 Commercial (New Construction) Full - 1.4500 - 0.00525025 0.00936003 0.00880000 0.023410 Commercial (New Construction) Exc Land - 1.4500 - 0.00525025 0.00936003 0.00880000 0.023410 Shopping Centres 712,483,598 1.4500 1,033,101,217 0.00525025 0.00936003 0.00880000 0.023410 Shopping Centres Excess Land 1,732,233 1.4500 2,511,738 0.00525025 0.00936003 0.00880000 0.023410 Shopping Centre (New Construction)- 1.4500 - 0.00525025 0.00936003 0.00880000 0.023410 Shopping Ctr Exc Land (New Construction)- 1.4500 - 0.00525025 0.00936003 0.00880000 0.023410 Office Building 77,838,442 1.4500 112,865,741 0.00525025 0.00936003 0.00880000 0.023410 T Parking Lot 928,900 1.4500 1,346,905 0.00525025 0.00936003 0.00880000 0.023410 Industrial 218,126,839 2.0235 441,379,659 0.00732681 0.01306208 0.00880000 0.029188 Industrial (New Construction)- 2.0235 - 0.00732681 0.01306208 0.00880000 0.029188 Industrial Excess Land 3,284,758 2.0235 6,646,708 0.00732681 0.01306208 0.00880000 0.029188 Industrial Vacant Land 11,709,600 2.0235 23,694,376 0.00732681 0.01306208 0.00880000 0.029188 Industrial Excess Land (New Construction)- 2.0235 - 0.00732681 0.01306208 0.00880000 0.029188 Large Industrial 65,713,500 2.0235 132,971,267 0.00732681 0.01306208 0.00880000 0.029188 Large Industrial - Excess Land 1,615,400 2.0235 3,268,762 0.00732681 0.01306208 0.00880000 0.029188 Large Industrial (New Construction)- 2.0235 - 0.00732681 0.01306208 0.00880000 0.029188 Total Taxable 20,951,592,934 22,293,289,775 Pic B 05 71 53 50 96 66 28 28 28 28 28 28 28 28 28 28 28 89 89 89 89 89 89 89 89 8 RT RT FT TT PT M NT CT CU CX XT XU ST SU ZT ZU DT G IT JT IU IX JU LT LU KT Schedule A kering Region Education Total illing Billing Billing Billing 65,424,603 116,637,551 27,645,267 209,707,422 112,595 200,734 59,472 372,801 5,145 9,172 2,174 16,490 144,954 258,420 286,554 689,929 1,306,051 2,328,399 295,673 3,930,124 0 0 0 0 7,065,490 12,596,200 11,842,544 31,504,234 128,820 229,657 215,916 574,394 168,529 300,450 282,474 751,454 0 0 0 0 0 0 0 0 3,740,717 6,668,868 6,269,856 16,679,441 9,095 16,214 15,244 40,552 0 0 0 0 0 0 0 0 408,671 728,570 684,978 1,822,220 4,877 8,695 8,174 21,746 1,598,174 2,849,190 1,919,516 6,366,880 0 0 0 0 24,067 42,906 28,906 95,878 85,794 152,952 103,044 341,790 0 0 0 0 481,470 858,355 578,279 1,918,104 11,836 21,100 14,216 47,152 0 0 0 0 0,720,889 143,907,434 50,252,287 274,880,610 Tax Calcs 2023 Tax Weighted City Region Education Total Pickering Region Education Total RTC Phase-In Ratios Assmt Tax Rate Tax Rate Tax Rate Tax Rate Billing Billing Billing Billing Property Class Payments in Lieu Properties RF Residential 169,622,800 1.0000 169,622,800 0.00362086 0.00645519 0.00153000 0.01160605 614,180 1,094,947 259,523 1,968,651 RP Residential - Tax Tenant 35,979,000 1.0000 35,979,000 0.00362086 0.00645519 0.00153000 0.01160605 130,275 232,251 55,048 417,574 RG Residential - General 62,579,900 1.0000 62,579,900 0.00362086 0.00645519 0.00000000 0.01007605 226,593 403,965 0 630,558 RH Residential - Full Shared PIL 169,200 1.0000 169,200 0.00362086 0.00645519 0.00153000 0.01160605 613 1,092 259 1,964 FF Farm 117,838,900 0.2000 23,567,780 0.00072417 0.00129104 0.00038250 0.00239771 85,335 152,135 45,073 282,544 FP Farm - Tax Tenant 22,392,200 0.2000 4,478,440 0.00072417 0.00129104 0.00038250 0.00239771 16,216 28,909 8,565 53,690 CF Commercial Full 131,888,800 1.4500 191,238,760 0.00525025 0.00936003 0.00980000 0.02441028 692,449 1,234,483 1,292,510 3,219,443 CH Commercial Full - Shared PIL 42,180,100 1.4500 61,161,145 0.00525025 0.00936003 0.00980000 0.02441028 221,456 394,807 413,365 1,029,628 CP Commercial Full - Tax. Tenant 14,660,800 1.4500 21,258,160 0.00525025 0.00936003 0.00980000 0.02441028 76,973 137,226 143,676 357,874 CG Commercial General 49,487,900 1.4500 71,757,455 0.00525025 0.00936003 0.00000000 0.01461028 259,824 463,208 0 723,032 CV Commercial Full - Excess Land 2,478,100 1.4500 3,593,245 0.00525025 0.00936003 0.00980000 0.02441028 13,011 23,195 24,285 60,491 CW Commercial General Excess Land 1,833,900 1.4500 2,659,155 0.00525025 0.00936003 0.00000000 0.01461028 9,628 17,165 0 26,794 CZ Commercial Gen - Vacant Land 3,888,000 1.4500 5,637,600 0.00525025 0.00936003 0.00000000 0.01461028 20,413 36,392 0 56,805 CJ Commercial - Vacant Land Shared PIL - 1.4500 - 0.00525025 0.00936003 0.00980000 0.02441028 0 0 0 0 DH Office Building Full - Shared PIL 26,618,500 1.4500 38,596,825 0.00525025 0.00936003 0.00980000 0.02441028 139,754 249,150 260,861 649,765 IG Industrial General PIL - 2.0235 - 0.00732681 0.01306208 0.00000000 0.02038889 0 0 0 0 IH Industrial Full- Shared PIL 23,480,800 2.0235 47,513,399 0.00732681 0.01306208 0.01250000 0.03288889 172,039 306,708 293,510 772,257 IP Industrial Full- Tax Tenant 280,900 2.0235 568,401 0.00732681 0.01306208 0.01250000 0.03288889 2,058 3,669 3,511 9,238 IK Ind. Excess Land - Shared PIL 2,576,600 2.0235 5,213,750 0.00732681 0.01306208 0.01250000 0.03288889 18,878 33,656 32,208 84,742 IQ Ind. Excess Land Tax Tenant PIL - 2.0235 - 0.00732681 0.01306208 0.01250000 0.03288889 0 0 0 0 IJ Industrial Vacant Land Shared PIL 3,179,000 2.0235 6,432,707 0.00732681 0.01306208 0.01250000 0.03288889 23,292 41,524 39,738 104,554 IZ Industrial Vacant Land General PIL - 2.0235 - 0.00732681 0.01306208 0.00000000 0.02038889 0 0 0 0 LK Large Ind. Excess Land - Shared PIL 7,874,600 2.0235 15,934,253 0.00732681 0.01306208 0.01250000 0.03288889 57,696 102,859 98,433 258,987 LI Large Ind. Water Intake - Shared PIL 9,865,200 2.0235 19,962,232 0.00732681 0.01306208 0.01250000 0.03288889 72,280 128,860 123,315 324,455 LS Large Ind. Generating Station - Shared PIL 24,048,900 2.0235 48,662,949 0.00732681 0.01306208 0.01250000 0.03288889 176,202 314,129 300,611 790,942 LN Large Ind. Non-Gen Stn - Shared PIL 44,198,300 2.0235 89,435,260 0.00732681 0.01306208 0.01250000 0.03288889 323,833 577,322 552,479 1,453,633 Total PILS 797,122,400 926,022,416 3,352,998 5,977,652 3,946,970 13,277,620 Grand Totals 21,748,715,334 23,219,312,191 84,073,887 149,885,086 54,199,257 288,158,230