HomeMy WebLinkAboutCS 33-03
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REPORT TO COUNCIL
Report Number: CS 33-03
Date: September 8, 2003
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2003 Final Tax Due Dates for Commercial, Industrial and Multi-
Residential Realty Tax Classes and Tax Rates
Recommendation:
1.
It is recommended that report CS 33-03 of the Director, Corporate Services &
Treasurer be received; and that:
2.
the Director, Corporate Services & Treasurer be authorized to issue the FINAL
2003 Tax Bills for commercial, industrial and multi-residential properties with a due
date of October 15th, 2003;
3.
the Director, Corporate Services & Treasurer be authorized to make any changes
or undertake any actions necessary, including altering the due date, in order to
ensure the tax billing process is completed;
4.
the necessary By-Law attached to this report be read three times and approved;
and,
5.
the appropriate officials of the City of Pickering be given authority to give effect
hereto.
Executive Summary: Adoption of the above recommendations and passing the
attached By-Law provides for the final 2003 tax billing for the commercial, industrial and
multi-residential properties. The Tax Rates were previously approved by Council in
Resolution #105/03 under adoption of the Recommendations contained in Report CS
30-03.
Financial Implications: The attached By-Law is for the FINAL billing of 2003
property taxes for commercial, industrial and multi-residential properties. This billing will
raise approximately $17 million in property taxes for the City, Durham Region and
School Boards.
Report CS 33-03
Date: September 8, 2003
Subject: 2003 Final Tax Due Dates for Commercial, Industrial and Multi-
Residential Realty Tax Classes and Tax Rates
Page 2
Background: The City of Pickering will soon be in a position to issue the final
2003 property tax bill in accordance with the capping provisions of Bill 140 Continued
Protection For Property Taxpayers Act, passed by the Province on December 4,2000
and implemented through various Regulations. This legislation was put in place to limit
assessment reform related increases to 5% per year on commercial, industrial and
multi-residential properties.
Under this legislation, property owners facing increases due to property assessment
reform had their increases "capped" (reduced). Conversely, those properties
experiencing decreases were limited to that permitted under the legislation. This meant
that taxes have to be "clawed back" from those experiencing decreases to fund the loss
of revenue resulting from the capped increases.
The funding of the capping protection is "paid for" on a Region wide basis. The Region
of Durham acts like a banker in this process. In other words, the total cost of the
capping protection for example the commercial tax class is paid for by the other
commercial properties throughout the Region by having a portion of their related
property tax decrease withheld (clawed back). As part of the Region wide process,
City of Pickering uses a Provincial database program called "Online Property Tax
Analysis" or OPTA to verify non residential assessment data. Every municipality within
Durham Region uses the OPT A system. The OPTA system became operational in mid
April and taxation staff worked throughout the spring verifying the data and investigating
the discrepancies. Assessment Review Board decisions and Minutes of Settlement
were incorporated into the capping calculations up to May 30 which was the cut-off date
for these changes. After this date the area municipalities would have completed their
analysis of the assessment and taxation data.
For this year, the City of Pickering issued an interim tax bill to these realty property tax
classes with two installment dates (February 26th and April 28th). The proposed final
installment date of October 15th, provides these tax classes with some additional time to
pay their tax bill. Schedule A below, provides a breakdown of the final billing dates for
the non residential tax classes from 1999 to 2002.
Schedule A
Non Residential Final Billing Dates
Year
Number of
Installments
One
One
One
One
One
Date
1999
2000
2001
2002
2003
December 15, 1999
October 13, 2000
October 29,2001
October 29, 2002
October 15, 2003
Report CS 33-03
Date: September 8, 2003
Subject: 2003 Final Tax Due Dates for Commercial, Industrial and Multi-
Residential Realty Tax Classes and Tax Rates
Page 3
As Schedule A indicates, the proposed 2003 final due date closely follows the pattern
established during the last four years. The one installment date will assist the City in
managing its cash flow due to the fact a School Board payment of approximately $9.6
million is required on September 30th.
Attachments:
1.
2003 Final Tax Due Dates and Tax Rates for Commercial, Industrial and Multi-
Residential Realty Tax Classes
Prepared By:
Approved I Endorsed By:
~=------ ~ '
Stan Karwowski
Manager, Finance & Taxation
. %~~~
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
"
. "'1FNT #-1- TO REPORT # tS'5:3-Q3
THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO. 6178/03
Being a By-law of The Corporation of the City of Pickering to
Establish the 2003 tax rates for the Commercial, Industrial and
Multi-Residential realty taxes and to levy the FINAL commercial,
industrial and multi-residential taxes for the year2003.
WHEREAS it is necessary for the Council of The Corporation of the City of Pickering,
pursuant to the Municipal Act, 2001, S.D. 2001, c.25 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, 2001, S.D. 2001, c.25, to levy on the whole ratable
property according to the last revised assessment roll for The Corporation of the City of
Pickering.
WHEREAS the Regional Municipality of Durham has passed By-law No. 21-2003 to
establish tax ratios and By-law No. 20-2003 to adopt estimates of all sums required by
The Regional Municipality of Durham for the purposes of the Regional Corporation and
By-law No. 34-2003 to set and levy rates of taxation for Regional Solid Waste
Management and By-law No. 22-2003 to set and levy rates of taxation for Regional
General Purposes and set tax rates on Area Municipalities; 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 for the current year;
and, .
WHEREAS an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 6097/03) before the adoption of the estimates for the
current year; and,
WHEREAS sub section 342 (2) of the Municipal Act, 2001, S.D. 2001, c.25 as
amended, permits the issuance of separate tax bills for separate classes of real
property for year 2003.
NOW THEREFORE THE COUNCil OF THE CORPORATION OF THE CITY OF
PICKERING HEREBY ENACTS AS FOLLOWS:
1.
For the year 2003, The Corporation of the City of Pickering (the "City") shall levy
upon the Property Classes (commercial, industrial and multi-residential) as set
out in By-law No. 6160/03 of Schedule "A", the rates of taxation, 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" of By-law No. 6160/03.
Where applicable, taxes shall be adjusted in accordance with Bill 140, as
amended and its Regulations.
2.
The levy provided for shall be reduced by the amount of the interim levy for
2003.
3.
The 2003 final tax calculations for the industrial, commercial and multi-residential
realty tax classes is based on the "cut-off" date as of May 30, 2003.
The decrease retained percentage for the realty class is outlined below:
4.
Multi residential
Commercial
Industrial
41.4288%
10.4736%
15.4505%
5.
The 2003 taxes owed for the commercial, industrial and multi-residential
assessed properties shall be due in one installment on October 15, 2003 or as
adjusted by the Treasurer.
6.
Except in the case of taxes payable under Section 33 and 34 of the Assessment
Act, R.S.O. 1990, c.A31 , as amended, the percentage charge as a penalty for
non-payment of taxes and monies payable as taxes shall be added to every tax
or assessment, rent or rate of any installment or part thereof remaining unpaid
on the first day of default and on the first day of each calendar month thereafter
in which such default continues pursuant to subsections 345 (1), (2) and (3) of
the Municipal Act 2001, S.O. c.25 as amended. The Treasurer shall collect by
distress or otherwise under the provisions of the applicable statutes all such
taxes, assessments, rents, rates or installments or parts thereof as shall not
have been paid on or before the several dates named as aforesaid, together with
the said percentage charges as they are incurred pursuant to sections 349, 350
and 351 of the Municipal Act 2001, S.O. c.25 as amended.
7.
If any section or portion of this By-law 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 continue in
force and effect.
8.
Taxes shall be payable to the Treasurer, City of Pickering.
9.
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 15th day of
September, 2003.
Wayne Arthurs, Mayor
Bruce Taylor, Clerk