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HomeMy WebLinkAboutFIN 04-26 Report to Council Report Number: FIN 04-26 Date: April 27, 2026 From: Stan Karwowski Director, Finance, Treasurer Subject: 2026 Tax Rates and Final Tax Due Dates File: F-4200-001 Recommendation: 1. That Report FIN 04-26 regarding the 2026 tax rates and final tax due dates be received; 2. That the 2026 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 for all taxable and PIL properties be June 25, 2026 and September 25, 2026; 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. 1.0 Executive Summary: The purpose of this report is to approve the tax rates required to raise the levy approved in the 2026 Current Budget and to levy taxes for School Boards and for the Region of Durham. The report also sets the property tax final due dates for all property classes. 2.0 Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan to Advance Innovation & Responsible Planning to Support a Connected, Well-Serviced Community and Foster an Engaged & Informed Community. FIN 04-26 April 27, 2026 Page 2 3.0 Financial Implications: Adoption of the Recommendations and enacting the By-law will allow the City to bill the Final 2026 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. 4.0 Discussion: The purpose of this report is to approve the tax rates required to raise the levy approved in the 2026 Current Budget and to levy taxes for School Boards and for the Region of Durham. The report also sets the property tax final due dates for all property classes. 4.1 City’s Net Tax Levy and Tax Rate Increase The City’s approved 2026 Budget provided for a property tax levy increase of 3.49% over last year which translates into a 1.06% 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 at an average of 3.81% on the total residential property tax bill. The total average commercial increase is 2.74% and the total average industrial increase is 3.03%. The reason that the commercial and industrial increases are less than the total average residential increase is due to fact that the education share (which did not have a tax increase) of property taxes is substantially higher for these two tax classes. The City’s approved 2026 Budget levy of $101,130,740 plus assessment growth of $3,466,267 translates into a total property tax levy of $104,597,007. 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. 4.2 Communication Strategy In addition to mailing the tax bills, the City will advertise the tax instalment due dates on the City’s webpage, various social media outlets as well as any other communication channels deemed appropriate by the Director, Finance & Treasurer, prior to each tax due date. Attachment: 1. By-law to Establish the 2026 Tax Rates and Final Instalment Due Dates for All Realty Classes Prepared By: Karen Uphoff, Supervisor, Taxation Approved/Endorsed By: James Halsall, Division Head, Finance FIN 04-26 April 27, 2026 Page 3 Approved/Endorsed By: Stan Karwowski, Director, Finance & Treasurer KU:sk Recommended for the consideration of Pickering City Council By: Marisa Carpino, M.A. Chief Administrative Officer The Corporation of the City of Pickering By-law No. XXXX/26 Being a by-law to adopt the estimates of all sums required to be raised by taxation for the year 2026 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 2025-060 to establish tax ratios, By-law 2026-008 to adopt estimates of all sums required by The Regional Municipality of Durham for the Durham Region Transit Commission, By-law 2026-009 to set and levy rates of taxation for Regional Solid Waste Management, By-law 2026-006 to set and levy rates of taxation for Regional General Purposes, and By-law 2026-007 to set and levy rates of taxation for Durham Regional Police Service Board and set tax rates on Area Municipalities; and, Whereas the Province of Ontario has provided the 2026 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 2026; and, Whereas an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law 8219/25 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 2026, The Corporation of the City of Pickering (the “City”) on April 27, 2026 approved Council Report FIN 04-26 and corresponding schedules and attachments as presented, resulting in a taxation levy of $101,130,740. Attachment 1 to Report FIN 04-26 2.The levy provided for in Schedule “A” shall be reduced by the amount of the interim levy for 2026. 3.The Tax Levy due dates for the Final Billing be June 25, 2026 and September 25, 2026 for all classes. 4.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. 5.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. 6.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. 7.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. 8.This By-law comes into force on the date it is passed. By-law passed this 27th day of April, 2026. __________________________ Kevin Ashe, Mayor __________________________ Susan Cassel, City Clerk By-law No. XXXX/26 Page 2 2026 Budget Tax Levy 104,597,007 2026 Phase-In Tax Ratios Weighted Assmt City Region Education Total Rate Pickering Region Education TOTAL Taxable Properties RT Residential 20,559,171,494 1.000000 20,559,171,494 0.00403528 0.00780760 0.00153000 0.01337288 82,962,014 160,517,787 31,455,532 274,935,333 FT Farm 147,278,300 0.200000 29,455,660 0.00080706 0.00156152 0.00038250 0.00275108 118,862 229,978 56,334 405,174 TT Managed Forest 5,823,000 0.250000 1,455,750 0.00100882 0.00195190 0.00038250 0.00334322 5,874 11,366 2,227 19,468 PT Pipelines 36,425,000 1.229400 44,780,895 0.00496097 0.00959867 0.00880000 0.02335964 180,703 349,632 320,540 850,875 MT Multi-Residential 179,413,400 1.866500 334,875,111 0.00753185 0.01457288 0.00153000 0.02363473 1,351,315 2,614,570 274,503 4,240,387 NT New Multi Res 68,424,000 1.100000 75,266,400 0.00443881 0.00858836 0.00153000 0.01455717 303,721 587,650 104,689 996,060 CT Commercial 1,387,566,936 1.450000 2,011,972,057 0.00585116 0.01132102 0.00880000 0.02597218 8,118,876 15,708,673 12,210,589 36,038,138 CU Commercial - Excess Land 15,014,325 1.450000 21,770,771 0.00585116 0.01132102 0.00880000 0.02597218 87,851 169,977 132,126 389,955 CX Commercial Vacant Land 45,821,800 1.450000 66,441,610 0.00585116 0.01132102 0.00880000 0.02597218 268,111 518,750 403,232 1,190,092 ST Shopping Centres 688,977,087 1.450000 999,016,776 0.00585116 0.01132102 0.00880000 0.02597218 4,031,315 7,799,923 6,062,998 17,894,237 SU Shopping Centres Excess Land 1,701,400 1.450000 2,467,030 0.00585116 0.01132102 0.00880000 0.02597218 9,955 19,262 14,972 44,189 DT Office Building 77,806,152 1.450000 112,818,920 0.00585116 0.01132102 0.00880000 0.02597218 455,256 880,845 684,694 2,020,795 GT Parking Lot 1,649,300 1.450000 2,391,485 0.00585116 0.01132102 0.00880000 0.02597218 9,650 18,672 14,514 42,836 IT Industrial 229,983,660 2.023500 465,371,936 0.00816539 0.01579868 0.00880000 0.03276407 1,877,906 3,633,438 2,023,856 7,535,201 IU Industrial Excess Land 1,648,758 2.023500 3,336,262 0.00816539 0.01579868 0.00880000 0.03276407 13,463 26,048 14,509 54,020 IX Industrial Vacant Land 45,015,600 2.023500 91,089,067 0.00816539 0.01579868 0.00880000 0.03276407 367,570 711,187 396,137 1,474,894 LT Large Industrial 81,833,600 2.023500 165,590,290 0.00816539 0.01579868 0.00880000 0.03276407 668,203 1,292,863 720,136 2,681,202 LU Large Industrial - Excess Land 937,300 2.023500 1,896,627 0.00816539 0.01579868 0.00880000 0.03276407 7,653 14,808 8,248 30,710 Total Taxable 23,574,491,112 24,989,168,141 100,838,300 195,105,429 54,899,837 350,843,566 Payments in Lieu Properties RF Residential 179,619,000 1.000000 179,619,000 0.00403528 0.00780760 0.00153000 0.01337288 724,813 1,402,393 274,817 2,402,023 RP Residential - Tax Tenant 25,714,000 1.000000 25,714,000 0.00403528 0.00780760 0.00153000 0.01337288 103,763 200,765 39,342 343,870 RG Residential - General 67,562,800 1.000000 67,562,800 0.00403528 0.00780760 0.00000000 0.01184288 272,635 527,503 0 800,138 RH Residential - Full Shared PIL 169,200 1.000000 169,200 0.00403528 0.00780760 0.00153000 0.01337288 683 1,321 259 2,263 FF Farm 116,785,600 0.200000 23,357,120 0.00080706 0.00156152 0.00038250 0.00275108 94,253 182,363 44,670 321,287 FP Farm - Tax Tenant 20,286,500 0.200000 4,057,300 0.00080706 0.00156152 0.00038250 0.00275108 16,372 31,678 7,760 55,810 CF Commercial Full 132,042,800 1.450000 191,462,060 0.00585116 0.01132102 0.00980000 0.02697218 772,604 1,494,859 1,294,019 3,561,482 CH Commercial Full - Shared PIL 42,179,800 1.450000 61,160,710 0.00585116 0.01132102 0.00980000 0.02697218 246,801 477,518 413,362 1,137,681 CP Commercial Full - Tax. Tenant 14,365,800 1.450000 20,830,410 0.00585116 0.01132102 0.00880000 0.02597218 84,057 162,636 126,419 373,111 CG Commercial General 49,485,700 1.450000 71,754,265 0.00585116 0.01132102 0.00000000 0.01717218 289,549 560,229 0 849,777 CV Commercial Full - Excess Land 2,478,100 1.450000 3,593,245 0.00585116 0.01132102 0.00980000 0.02697218 14,500 28,055 24,285 66,840 CW Commercial General Excess Land 1,833,900 1.450000 2,659,155 0.00585116 0.01132102 0.00000000 0.01717218 10,730 20,762 0 31,492 CZ Commercial Gen - Vacant Land 3,888,000 1.450000 5,637,600 0.00585116 0.01132102 0.00000000 0.01717218 22,749 44,016 0 66,765 DH Office Building Full - Shared PIL 26,618,500 1.450000 38,596,825 0.00585116 0.01132102 0.00980000 0.02697218 155,749 301,349 260,861 717,959 IH Industrial Full- Shared PIL 24,305,700 2.023500 49,182,584 0.00816539 0.01579868 0.01250000 0.03646407 198,466 383,998 303,821 886,285 IK Ind. Excess Land - Shared PIL 2,576,600 2.023500 5,213,750 0.00816539 0.01579868 0.01250000 0.03646407 21,039 40,707 32,208 93,953 IJ Industrial Vacant Land Shared PIL 3,110,000 2.023500 6,293,085 0.00816539 0.01579868 0.01250000 0.03646407 25,394 49,134 38,875 113,403 LK Large Ind. Excess Land - Shared PIL 7,874,600 2.023500 15,934,253 0.00816539 0.01579868 0.01250000 0.03646407 64,299 124,408 98,433 287,140 LI Large Ind. Water Intake - Shared PIL 9,865,200 2.023500 19,962,232 0.00816539 0.01579868 0.01250000 0.03646407 80,553 155,857 123,315 359,725 LS Large Ind. Generating Station - Shared PIL 24,048,900 2.023500 48,662,949 0.00816539 0.01579868 0.01250000 0.03646407 196,369 379,941 300,611 876,921 LN Large Ind. Non-Gen Stn - Shared PIL 44,198,300 2.023500 89,435,260 0.00816539 0.01579868 0.01250000 0.03646407 360,896 698,275 552,479 1,611,650 VP Aggregate Extraction 366,000 1.646535 602,632 0.00664423 0.00084344 0.00511000 0.01259767 2,432 309 1,870 4,611 Total PILS 799,375,000 931,460,435 3,758,705 7,268,074 3,937,407 14,964,187 Grand Totals 24,373,866,112 25,920,628,576 104,597,006 202,373,503 58,837,244 365,807,753 Tax Class Tax Rates Billing 2026 Calculated Tax Rates Schedule A to By-law XXXX/26