HomeMy WebLinkAboutFIN 07-189
DICKERING
Report to
Executive Committee
Report Number: FIN 07-18
Date: May 7, 2018
From: Stan Karwowski
Director, Finance & Treasurer .
Subject: 2018 Tax Rates and Final Tax Due Dates for all Realty Tax Classes,
Except for Commercial, Industrial and Multi -Residential Realty Classes
Recommendation:
1. That Report FIN 07-18 of the Director, Finance & Treasurer regarding the 2018
tax rates be received;
That the 2018 tax rates for the City of Pickering be approved as contained in
Schedule A of the By-law attached hereto;
That the tax levy due dates for the Final Billing be June 27, 2018 and September
27, 2018 excluding the industrial, multi -residential and commercial realty tax
classes;
4. That for the year 2018, 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 ;
That the attached By-law be approved;
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;
That Council approve the filing of the following assessment appeals:
1801 010 038 19800;
1801 020 017 17300;
1801 020 017 27300;
1801 020 022 06700;
1801 020 022 06906;
1801 020 025 00100;
1801 020 025 04500;
1801 020 025 25610; and,
FIN 07-18
May 7, 2018
Subject: 2018 Tax Rates and Final Tax Due Dates for all Realty Tax Classes, Page 2
Except for Commercial, Industrial and Multi -Residential Realty Classes
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
2018 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.
Financial Implications: Adoption of the Recommendations and enacting the By-law
will allow the City to bill the Final 2018 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 2018 final tax billing process will consist of two separate
components:
1. 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 2018 budget provided for an average property tax increase of 2.49% and was
adopted by Council through Finance Department Report FIN 03-18. The 2018 Council
approved budget levy of $62,489,100 plus assessment growth of $740,000 translates
into a total property tax levy of $63,229,100. The Region's tax increase for Pickering is
1.9% 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.
FIN 07-18 May 7, 2018
Subject: 2018 Tax Rates and Final Tax Due Dates for all Realty Tax Classes, Page 3
Except for Commercial, Industrial and Multi -Residential Realty Classes
Tax Due Date Instalments
Recommendation 3 sets the due dates for the payment of residential taxes at June 27,
2018 and September 27, 2018. For your reference, the table below lists the tax
instalment due dates for residential properties for the last three years.
Year
1st Instalment
2nd Instalment
2018
June 27,
2018
September 27,
2018
2017
June 28,
2017
September 28,
2017
2016
June 28,
2016
September 28,
2016
2015
June 25,
2015
September 25,
2015
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
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 27, 2018.
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
FiN 07-18 May 7, 2018
Subject: 2018 Tax Rates and Final Tax Due Dates for all Realty Tax Classes, Page 4
Except for Commercial, industrial and Multi -Residential Realty Classes
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.
Assessment Appeals
Recommendation 7 is seeking council approval to file assessment appeals for eight
commercial/industrial properties. These appeals are mainly due to the assessment to
sale price ratio (ASR). In other words, the combined assessed value of the properties is
$12.2 million and the total of the recent safe prices is $21 0 million.
Staff are asking the Municipal Property Assessment Corporation (MPAC), as a first step,
to investigate these discrepancies. These appeals are rooted in the principle of tax
fairness from the perspective that every property owner should pay their fair share of
property taxes. Fairness means in this situation that existing inequity by paying less than
fair share is corrected through the assessment appeal.
Attachments:
1. By-law to Establish the 2018 Tax Rates and Final Instalment Due Dates for All
Realty Classes Except Non -Residential
Prepared By: Approved / Endorsed By:
Mike Jones Stan Karwowski
Supervisor, Taxation Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P. Eng.
Chief Administrative Officer
4-6/13,, W18
AE ACM
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 2018 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.
O i OSTM ► 07
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 05-2018 to establish
tax ratios, By-law 07-2018 to adopt estimates of all sums required by The Regional
Municipality of Durham for the Durham Region Transit Commission, By-law 08-2018 to
set and levy rates of taxation for Regional Solid Waste Management, and By-law 06-
2018 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 2018 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 2018;
and,
Whereas an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law 7601/18 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 2018, The Corporation of the City of Pickering (the "City") on April 10,
2018, approved Council Report FIN 07-18 and corresponding schedules and
attachments as presented, resulting in a taxation levy of $63,229,100.
By-law No. Page 2
2. For the year 2018, 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.
The levy provided for in Schedule "A" shall be reduced by the amount of the
interim levy for 2018.
4. The Tax Levy due dates for the Final Billing be June 27, 2018 and September 27,
2018 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 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 hearby 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 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 2018, 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-Iaw No. Page 3
By-law passed this 14th day of May 2018.
David Ryan, Mayor
Debbie Shields, City Clerk
63,229,1001
2018 Budget Tax Levy
RTC Property Class - Taxable
Schedule A - 2018 Calculated Tax Rates
2018 City
Region Education Total Pickering Region Education TOTAL
Phase-in Assessment Tax Rate Tax Rate Tax Rate Tax Rate Billing Billing Billing BILLING
RT Residential 13,796,370,716 0.00349006 0.00633998 0.00170000 0.01153004 48,150,162 87,468,714 23,453,830 159,072,706
RD Residential-Educ only (Legion) 761,000 0.00000000 0.00000000 0.00170000 0.00170000 0 0 1,294 1,294
FT Farm 163,401,475 0.00069801 0.00126799 0.00042500 0.00239100 114,056 207,191 69,446 390,693
TT Managed Forest 4,347,455 0.00087252 0.00158501 0.00042500 0.00288253 3,793 6,891 1,848 12,532
PT Pipelines 29,017,500 0.00429068 0.00779436 0.01090000 0.02298504 124,505 226,173 316,291 666,968
MT Multi -Residential 131,660,677 0.00651420 0.01183358 0.00170000 0.02004778 857,664 1,558,017 223,823 2,639,504
NT Multi -Residential (New Construction) 0.00383907 0.00697398 0.00170000 0.01251305 0 0 0 0
CT Commercial 925,163,790 0.00506059 0.00919298 0.01077055 0.02502412 4,681,875 8,505,012 9,964,523 23,151,410
CU Commercial - Excess Land 8,466,920 0.00404847 0.00735438 0.00861644 0.02001929 34,278 62,269 72,955 169,502
CX Commercial Vacant Land 54,979,500 0.00404847 0.00735438 0.00861644 0.02001929 222,583 404,340 473,728 1,100,651
07 Commercial (New Construction) Full 59,868,492 0.00506059 0.00919298 0.01077055 0.02502412 302,970 550,370 644,817 1,498,156
XU Commercial (New Construction) Exc Land 4,708,426 0.00404847 0.00735438 0.00861644 0.02001929 19,062 34,628 40,570 94,259
XX Commercial (New Construction) Vacant - 0.00404847 0.00735438 0.00861644 0.02001929 0 0 0 0
5T Shopping Centres 644,178,108 0.00506059 0.00919298 0.01077055 0.02502412 3,259,921 5,921,916 6,938,153 16,119,990
5U Shopping Centres Excess Land 143,000 0.00404847 0.00735438 0.00861644 0.02001929 579 1,052 1,232 2,863
ZT Shopping Centre (New Construction) 35,377,243 0.00506059 0.00919298 0.01077055 0.02502412 179,030 325,222 381,032 885,284
ZU Shopping Ctr Exc Land (New Construction) 85,300 0.00404847 0.00735438 0.00861644 0.02001929 345 627 735 1,708
DT Office Building 82,759,485 0.00506059 0.00919298 0.01077055 0.02502412 418,812 760,806 891,365 2,070,983
DU Office Building Excess Land - 0.00404847 0.00735438 0.00861644 0.02001929 0 0 0 0
YT Office Building (New Construction) - 0.00506059 0.00919298 0.01077055 0.02502412 0 0 0 0
GT Parking Lot 416,000 0.00506059 0.00919298 0.01077055 0.02502412 2,105 3,824 4,481 10,410
HT Landfill - 0.00383907 0.00697398 0.01081305 0 0 0 0
IT Industrial 146,211,314 0.00762578 0.01385286 0.01340000 0.03487864 1,114,975 2,025,445 1,959,232 5,099,652
IT Industrial (New Construction) 9,499,601 0.00762578 0.01385286 0.01090000 0.03237864 72,442 131,597 103,546 307,584
IU Industrial Excess Land 1,555,935 0.00584669 0.01062074 0.01027378 0.02674121 9,097 16,525 15,985 41,608
IX Industrial Vacant Land 11,976,943 0.00584669 0.01062074 0.01027378 0.02674121 70,025 127,204 123,048 320,278
JU Industrial Excess Land (New Construction) 1,986,700 0.00584669 0.01062074 0.00835703 0.02482446 11,616 21,100 16,603 49,319
LT Large Industrial 53,799,500 0.00762578 0.01385286 0.01340000 0.03487864 410,263 745,277 720,913 1,876,453
LU Large Industrial - Excess Land 1,615,400 0.00584669 0.01062074 0.01027378 0.02674121 9,445 17,157 16,596 43,198
KT Large Industrial (New Construction) 14,360,000 0.00762578 0.01385286 0.01090000 0.03237864 109,506 198,927 156,524 464,957
KU Large Ind Excess Land (New Construction) - 0.00584669 0.01062074 0.00835703 0.02482446 0 0 0 0
-1 Farmland Awaiting Development - 0.00261755 0.00475499 0.00127500 0.00864754 0 0 0 0
Total Taxable 16,182,710,480 60,179,109 109,320,285 46,592,568 216,091,962
Property Class - Payments in Lieu
RF Residential 143,023,950 0.00349006 0.00633998 0.00170000 0.01153004 499,162 906,769 243,141 1,649,072
RP Residential - Tax Tenant 44,025,320 0.00349006 0.00633998 0.00170000 0.01153004 153,651 279,120 74,843 507,614
RG Residential -General 65,242,531 0.00349006 0.00633998 0.00000000 0.00983004 227,700 413,636 0 641,337
RH Residential - Full Shared PIL 245,100 0.00349006 0.00633998 0.00170000 0.01153004 855 1,554 417 2,826
FF Farm 110,996,700 0.00069801 0.00126799 0.00042500 0.00239100 77,477 140,743 47,174 265,393
FP Farm -Tax Tenant 34,306,594 0.00069801 0.00126799 0.00042500 0.00239100 23,946 43,500 14,580 82,027
CF Commercial Full 124,386,987 0.00506059 0.00919298 0.01077055 0.02502412 629,472 1,143,487 1,339,716 3,112,675
CH Commercial Full - Shared PIL 39,280,320 0.00506059 0.00919298 0.01077055 0.02502412 198,782 361,103 423,071 982,955
CP Commercial Full -Tax. Tenant 2,359,750 0.00506059 0.00919298 0.01077055 0.02502412 11,942 21,693 25,416 59,051
CG Commercial General 48,003,204 0.00506059 0.00919298 0.00000000 0.01425357 242,925 441,292 0 684,217
CV Commercial Full - Excess Land 1,647,550 0.00404847 0.00735438 0.00861644 0.02001929 6,670 12,117 14,196 32,983
CW Commercial General Excess Land 1,833,900 0.00404847 0.00735438 0.00000000 0.01140285 7,424 13,487 0 20,912
CZ Commercial Gen -Vacant Land 2,822,000 0.00404847 0.00735438 0.00000000 0.01140285 11,425 20,754 0 32,179
CI Commercial - Vacant Land Shared PIL 150,500 0.00404847 0.00735438 0.00861644 0.02001929 609 1,107 1,297 3,013
DH Office Building Full -Shared PIL 18,483,900 0.00506059 0.00919298 0.01077055 0.02502412 144,145 261,852 306,787 712,785
IH Industrial Full -Shared PIL 15,632,805 0.00762578 0.01385286 0.01340000 0.03487864 119,212 216,559 209,480 545,251
IP Industrial Full -Tax Tenant 273,050 0.00762578 0.01385286 0.01340000 0.03487864 2,082 3,783 3,659 9,524
IK Ind. Excess Land -Shared PIL 9,353,175 0.00584669 0.01062074 0.01027378 0.02674121 54,685 99,338 96,092 250,115
IQ Ind. Excess Land Tax Tenant PIL 249,950 0.00584669 0.01062074 0.01027378 0.02674121 1,461 2,655 2,568 6,684
11 Industrial Vacant Land Shared PIL 2,910,000 0.00584669 0.01062074 0.01027378 0.02674121 17,014 30,906 29,897 77,817
LK Large Ind. Excess Land -Shared PIL 1,596,800 0.00584669 0.01062074 0.01027378 0.02674121 9,336 16,959 16,405 42,700
LI Large Ind. Water Intake -Shared PIL 9,769,600 0.00762578 0.01385286 0.01340000 0.03487864 74,501 135,337 130,913 340,750
L5 Large Ind. Generating Station - Shared PIL 29,848,500 0.00762578 0.01385286 0.01340000 0.03487864 227,618 413,487 399,970 1,041,075
LN Large Ind. Non -Gen Stn -Shared PIL 40,376,800 0.00762578 0.01385286 0.01340000 0.03487864 307,905 559,334 541,049 1,408,288
Total PILS
756,818,986 3,050,000 5,540,572 3,920,669 12,511,242
Grand Totals 16,939,529,466 63,229,108 114,860,858 50,513,237 228,603,203