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HomeMy WebLinkAboutFIN 08-17�'(.� b� PICKERII�G From Subject: Stan Karwowski Director, Finance & Treasurer Report to Executive Committee Report Number: FIN 08-17 Date: May 8, 2017 2017 Tax Rates and Final Tax Due Dates for all Realty Tax Classes, Except for Commercial, Industrial and Multi-Residential Realty Classes Recommendation: � 3 That Report FIN 08-17 of the Director, Finance & Treasurer regarding the 2017 tax rates be received; That the 2017 tax rates for the City of Pickering be approved as contained in Schedule A of the By-law attached hereto; That the tax IeVy due dates for the Final Billing be June 28, 2017 and September 28, 2017 excluding the industrial, multi-residential and commercial realty tax classes; 4. That for the year 2017, 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 ; 5. That the attached By-law be approved; 6. 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, 7. 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 2017 Current Budget of the City of Pickering and to levy taxes for School Boards and for the Region of Durham. This is for all realty tax classes except for commercial, industrial and multi-residential which will be dealt with later this year. FIN 08-17 May 8, 2017 Subject: 2017 Tax Rates and Finai Tax Due Dates for all Realty Tax Classes, Page 2 Except for Commercial, Industrial and Multi-Residentiat Realty Classes Financial Implications: Adoption of the Recommendations and enacting the By-law will allow the City to bill.the Final 2017 levy for all properties except for the industrial, commercial and multi-residential tax classes, which will be dealt with later this year. 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. Discussion: The 2017 final tax billing process will consist of two separate components: Residential and residential-related (farm, managed forest) properties; and, 2. Commercial, industrial and multi-residential realty classes. Later this year, a report will be presented to Council asking for Council's approval to bill the non-residential tax classes. The non-residential tax classes are subject to tax capping and Pickering's staff, in conjunction with the other lower tier municipal tax staff and the Region's finance staff, will be working on the tax capping calculations during the next few months. City's Net Tax Levy and Tax Rate Increase The City's 2017 budget provided for an average property tax increase of 2.69% and was adopted by Council through Finance Department Report FIN 04-17. The 2017 Council approved budget levy of $60,120,868 plus assessment growth of $850,000 translates into a total property tax levy of $60,970,868. The Region's tax increase for Pickering is 1.8% and the School Board increase is zero, resulting in a total average residential increase of approximately 1.8%. 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. From 1998 to and including 2016 (19 years), Pickering has had the lowest residential property tax rates in Durham Region. Tax Due Date Instalments Recommendation 3 sets the due dates for the payment of residential taxes at June 28, 2017 and September 28, 2017. For your reference, the table below lists the tax instalment due dates for the last three years. FIN 08-17 May 8, 2017 Subject: 2017 Tax Rates and Final Tax Due Dates for all Realty Tax Ciasses, Page 3 Except for Commercial, Industrial and Multi-Residential Realty Classes Year 1St Instalment 2"d Instalment 2017 June 28, 2017 Se tember 28, 2017 2016 June 28, 2016 Se tember 28, 2016 2015 June 25, 2015 Se tember 25, 2015 2014 June 26, 2014 Se tember 26, 2014 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 2 and 3 provide for the levying of all tax rates on all classes of property, except for the non-residential properties. For non-residential properties, the tax rates will be set and the property taxes will be billed at a later date because the "claw back" percentages have not yet been determined. Staff will bring a separate report to Council for the non—residential billing in June. Staff's preliminary estimate for the final non-residential tax due date is September 28, 2017. Recommendation 4 provides for the levying of an annual tax for institutions designated under section 323 of the Municipal Act. In the fall of 2013, the Ministry of Training, Colleges & Universities implemented a new enrolment system for colleges which resulted in the Durham College of Applied Arts and Technology being reported under the City of Pickering. Each year the Ministry of Municipal Affairs and Housing provides a listing of institutions and their respective capacity figures as of December 31St of the prior year. The Minister of Training, Colleges and Universities prescribes the amount to be levied for each full-time student enrolled in the college. The institution is billed directly, and levies are payable on or after July 1St each year. It is estimated that the gross billing under recommendation 4 is approximately $9,750. Changes to the Billing Schedule Recommendation 5 will allow the Director, Finance & Treasurer some latitude, limited by Provincial legislation, in effecting whatever changes may be necessary in order to ensure that the taxes are billed properly and in a timely fashion. Recommendation 5 will be used only if required to meet Provincial legislative requirements, such as the requirements in subsection 343(1) of the Municipal Act that property owners must have at least twenty-one days notice to pay their taxes. A further report to Council will be prepared if there is any substantial change proposed to the billing of the final taxes. FIN 08-17 May 8, 2017 Subject: 2017 Tax Rates and Finai Tax Due Dates for all Realty Tax Classes, Page 4 Except for Commercial, Industrial and Multi-Residential Realty Classes Attachments: 1. By-law to Establish the 2017 Tax Rates and Final Instalment Due Dates for All Realty Classes Except Non-Residential Prepared By: Donna DeLong Supervisor, Ta; of P �nded for the consideration ng City Council �s � Q 6� �@ 1� i� �-� �� Tony Pr vede P. Eng. Chief Administrative Officer 0 Approved / Endorsed By: Stan Karwowski Director, Finance & Treasurer The Corporation of the City of Pickerin��ACHMENT#�_TO REP�RT# ��� � �? By-law No. Being a by-law to adopt the estimates of all sums required to be raised by taxation for the year 2017 and to establish the Tax Rates necessary to raise such sums and establish the final due dates for the residential, pipeline, farm and managed forest 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 No. 06-2017 to establish tax ratios, By-law 08-2017 to adopt estimates of all sums required by The Regional Municipality of Durham for the Durham Region Transit Commission, By-law 09- 2017 to set and levy rates of taxation for Regional Solid Waste Management, and By-law No. 07-2017 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 2017 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 2017; and, Whereas an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 7536/17 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 2017, The Corporation of the City of Pickering (the "City") on April 11, 2017, approved Council Report FIN 08-17 and corresponding schedules and attachments as presented, resulting in a taxation levy of $60,970,868. By-law No. Page 2 2. For the year 2017, 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 2017. 4. The Tax Levy due dates for the Final Billing be June 28, 2017 and September 28, 2017 for all classes excluding the non-residential tax classes (commercial, industrial and multi-residential). 5. The Treasurer is hearby authorized to accept twelve monthly electronic payments commencing January 1 St and ending December 1 St 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 hearby authorized to accept twelve monthly electronic payments commencing January 8t" 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 hearby 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 2017, 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 Schedules "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 15th day of May 2017. David Ryan, Mayor Debbie Shields, City Clerk RTC RT RD FT TT PT MT CT CU CX XT XU XX ST SU ZT ZU DT YT IT JT IU IX JU LT LU 2017 Taxation Levy so,970,668 2017 City CVA Tax Rate Property Class - Taxable Residential Residential-Educ only (Legion) Farm Managed Forest Pipelines Multi-Residential Commercial Commercial - Excess Land Commercial Vacant Land Commercial (New Construction) Full Commercial (New Construction) Exc Land Commercial (New Construction) Vacant Shopping Centres Shopping Centres Excess Land Shopping Centre (New Conshuction) Shopping Clr Exc Land (New Consiruction) Office Building Office Building (New Construction) Industrial Industrial (New Construction) Industrial Excess Land Industrial Vacant Land Industrial Excess Land (New Construction) Large Industrial Large Industrial - Excess Land 12,685,749,443 614,000 150,816,440 3,947,475 28,102,000 114,582,800 864,003,660 8,447,087 45,389,500 46,697,246 1, 906,853 0 590,400,131 135,500 34,717,190 85,150 87,768,821 0 142,369,878 9,491,851 1,732,677 13,489,475 1,986,700 51,522,500 1,615,400 0.00364108 0.00364108 0.00000000 0.00072822 0.00091027 0.00447634 0.00679607 0.00527956 0.00369569 0.00369569 0.00527956 0.00369569 0.00369569 0.00527956 0.00369569 0.00527956 0.00369569 0.00527956 0.00527956 0.00822810 0.00822810 0.00534827 0.00534827 0.00534827 o.00s2zaio 0.00534827 Schedule A- 2017 Calculated Tax Rates Reglon Education Total Pickering Reglon Education Tax Rate Tax Rate Tax Rate Billing BIIIIng BIIIing 2017 0.00665931 0.00000000 0.00133186 0.00166483 0.00818695 0.01242960 0.00965600 0.00675920 0.00675920 0.00965600 0.00675920 0.00675920 0.00965600 0.00675920 0.00965600 0.00675920 0.00965600 0.00965600 0.01504871 0.01504871 0.00978186 0.00978186 0.00978186 0.01504871 0.00978186 0.00179000 0.00179000 0.00044750 0.00044750 0.01140000 0.00179000 0.01114154 0.00779908 0.00779908 0.01114154 0.00779908 0.00779908 0.01114154 0.00779908 0.01114154 0.00779906 0.01114154 0.01114154 0.01390000 0.01140000 0.00903500 0.00903500 0.00741000 0.01390000 0.00903500 0.01209039 0.00179000 0.00250758 0.00302260 0.02406329 0.02101567 0.02607710 0.01825397 0.01825397 0.02607710 0.01825397 0.01825397 0.02607710 0.01825397 0.02607710 0.01825397 0.02607710 0.02607710 0.03717681 0.03467681 0.02416513 0.02416513 0.02254013 0.03717681 0.02416513 46,189,776 0 109,827 3,593 125,794 778,713 4,561,559 31,218 167,746 246,541 7,047 0 3,117,053 501 183,291 315 463,381 0 1,171,434 78,100 9,267 72,145 10,625 423,932 8,640 84,478,338 0 200,866 6,572 230,070 1,424,218 8,342,819 57,096 306,797 450,909 12,889 0 5,700,904 916 335,229 576 847,496 0 2,142,483 142,840 16,949 131,952 19.434 775,347 15,802 22,707,492 1,099 67,490 1, 766 320,363 205,103 9,626,331 65,879 353,996 520,279 14,872 0 6,577,967 1,057 386,803 664 977,880 0 1,978,941 108,207 15,655 121,877 14,721 716,163 14,595 TOTAL BILLING 153,375,606 1,099 378,184 11,932 676,227 2,408,034 22,530,710 154,193 828,539 1,217,729 34,808 0 15,395,923 2,473 905,324 1,554 2,288,756 0 5,292,858 329,147 41,870 325,975 44,780 1,915,442 39,036 KT Large Industrial (New Construction) 14,360,000 0.00822810 0.01504871 0.01140000 0.03467681 118,156 216,099 163,704 497,959 KU Large Ind Excess Land (New Constn�ction) 0 0.00534627 0.00978186 0.00741000 0.02254013 0 0 0 0 GT Parking Lot � 351,500 0.00527956 0.00965600 0.01114154 0.02607710 1 856 3 394 3 916 9 166 Total Taxab�e 14 900 283 277 57 880 509 105 859 993 44 966 822 208 707 324 RF RP RG RH FF FP CF CH CP CG CV CW CZ CJ DH IH IP IK IQ IJ LK LI LS LN Property Class - Payments In Lleu Residendal Residenlial - Tax Tenanl Residential - General Residential - Futl Shared PIL Farm Farm - Tax Tenant Commercial Full Commercial Full - Shared PIL Commercial Full - Tax. Tenant Commercial General Commercial Full - Excess Land ' Commercial General Excess Land Commercial Gen - Vacant Land Commercial - Vacant Land Shared PIL Office Building Full - Shared PIL Industrial Full- Shared PIL Industrial Futl- Tax Tenant Ind. Excess Land - Shared PIL Ind. Excess Land Tax Tenant PIL Industrial Vacant Land Shared PIL Large Ind. Excess Land - Shared PIL Large Ind. Water Intake - Shared PIL Large Ind Generaiing Station - Shared PIL Large Ind. Non-6en Stn - Shared PIL 135,025,975 43,245,675 62,204,850 238,550 104,361,125 33,101,400 116,513,416 39,153,680 2,185,825 47,751,150 1,232,275 1,833,900 2,392,500 149, 750 27,612,150 15,651,795 255,025 8,952,825 233,475 2,810,000 1, 596,800 9,769,600 29,848,500 40,376,800 0.00364108 0.00364108 0.00364108 0.00364108 0.00072822 0.00072822 0.00527956 0.00527956 0.00527956 0.00527956 0.00369569 0.00369569 0.00369569 0.00369569 0.00527956 0.00822810 0.00822810 0.00534827 0.00534827 0.00534827 0.00534827 0.00822810 0.00822810 0.00822810 0.00665931 0.00665931 0.00665931 0.00665931 0.00133186 0.00133186 0.00965600 0.00965600 0.00965600 0.00965600 0.00675920 0.00675920 0.00675920 0.00675920 0.00965600 0.01504871 0.01504871 0.00978186 0.00978186 0.00978186 0.00978186 0.01504871 0.01504871 0.01504871 0.00179000 0.00179000 0.00000000 0.00179000 0.00044750 0.00044750 0.01114154 0.01114154 0.01114154 0.00000000 0.00779908 0.00000000 0.00000000 0.00779908 0.01114154 0.01390000 0.01390000 0.00903500 0.00903500 0.00903500 0.00903500 0.01390000 0.01390000 0.01390000 0.01209039 0.01209039 0.01030039 0.01209039 0.00250758 0.00250758 0.02607710 0.02607710 0.02607710 0.01493556 0.01825397 0.01045489 0.01045489 0.01825397 0.02607710 0.03717661 0.03717681 0.02416513 0.02416513 0.02416513 0.02416513 0.03717681 0.03717681 0.03717681 491,640 157,461 226,493 869 75,997 24,105 615,140 206,714 11,540 252,105 4,554 6,778 8,842 553 145,780 128,785 2,098 47,882 1, 249 15,029 8, 540 80,385 245,597 332, 224 899,180 287,986 414,241 1,589 138,994 44,066 1,125,054 378,068 21,106 461,085 8, 329 12, 396 16,171 1,012 266,623 235,539 3,838 87,575 2, 284 27,487 15,620 147,020 449,181 607,619 241,696 77,410 0 427 46,702 14,813 1,298,139 436, 232 24,353 0 9,611 D 0 1,168 307,642 217,560 3,545 80,889 2,109 25,388 14,427 135,797 414,894 561,238 1,632,516 522,857 640,734 2,884 261,693 83,004 3,038,332 1,021,014 57,000 713,190 22,494 19,173 25,013 2, 734 720,045 581,884 9,481 216,346 5,642 67,904 38,587 363,203 1,109,672 1,501,081 Total PILS 726,497,041 3 090,359 5,652,084 3,914,040 12,656,483 Grand Totals 15 626 780 318 60 970 868 111 512 078 48 880 862 221 363 808