HomeMy WebLinkAboutFIN 04-20PICKERING
cd, 4
Report to
Council
Report Number: FIN 04-20
Date: April 27, 2020
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2020 Tax Rates and Final Tax Due Dates
Recommendation:
1. That Report FIN 04-20 of the Director, Finance & Treasurer regarding the 2020
tax rates be received;
2. That the 2020 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 August 27, 2020 and October
28, 2020 excluding the industrial, multi -residential and commercial realty tax
classes;
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
2020 Current Budget 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 residential
property classes. The final due dates for non-residential (commercial, industrial, etc.) tax
classes will be set later this year.
Financial Implications: Adoption of the Recommendations and enacting the By-law
will allow the City to bill the Final 2020 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
FIN 04-20 April 27, 2020
Subject: 2020 Tax Rates and Final Tax Due Dates Page 2
and reducing any borrowing costs. This levy also raises taxes for the Region of Durham
and the School Boards.
Discussion: The 2020 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 2020 Budget provided for an average property tax increase of 2.99 per cent
and was adopted by Council through Finance Department Report FIN 02-20. The 2020
Council approved a budget levy of $68,630,621 plus assessment growth of $1,198,000
which translates into a total property tax levy of $69,828,621. The Region's tax increase
for Pickering is 2.42 per cent and the School Board increase is zero, resulting in a total
average residential increase of approximately 2.25 per cent.
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.
Tax Due Date Instalments
Recommendation 3 sets the due dates for the payment of residential taxes at August 27,
2020 and October 28, 2020. These dates are later than in recent years because of the
current global health crisis. The table below provides a summary of the changes to the
due dates.
Regular
Revised Plan
Residential Instalment Due Dates
Feb. March April May June July Aug. Sept. Oct.
Interim
Interim
Interim Final
Penalty Penalty
Waived Waived
Final
Final
FIN 04-20 April 27, 2020
Subject: 2020 Tax Rates and Final Tax Due Dates Page 3
Under the revised instalment plan, the residential taxpayer is being provided with an
additional 150 days to pay their property taxes. Pickering will forward to Durham Region
its share of the property taxes seven days after the due date. The Province announced
that it will defer the property tax payments to the school boards that would have been
due on June 30th to September 30th and the September 30th is now due on December
30111. The deferral of the school board payments will assist the City in managing its cash
flow.
COVID 19 Impacts
The Property Tax Section is seeing an increase in workload due to the impact of COVID
19 on the economy and corresponding effect on residents' ability to make property tax
payments.
On Saturday, March 21st, the City posted information on its website that the penalties
and interest on unpaid property taxes would not be charged on May 1st and June 1st
Indirectly, by waiving the application of penalties and interest, the April due date has
been deferred to the end of June. This action has resulted in the following:
• Increase in cancellations from the City's pre -authorized payment plan (213 as of
April 10th)
• Increase in phone call volume and more time spent by staff in answering phone
calls and emails queries.
• Increase in NSF cheque volume.
Previous to March 2020, every month the City had more taxpayers joining its pre -
authorized payment plan than cancelling until the COVID 19 lockdown. Staff expect the
number of cancellations to continue until self -isolating or lockdown direction is cancelled.
It is staff's expectation that the taxpayers who withdrew from the pre -authorized plan will
want to rejoin the plan in the future when the economic situation improves. Taxation staff
have also noticed that the duration of the phone calls is longer due to the fact the
taxpayer wants to understand the benefit of the interest penalty being waived for two
months and their options.
Please note that the attached By-law is subject to any emergency orders made by the
province pursuant to the Emergency Management and Civil Protection Act.
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.
FIN 04-20 April 27, 2020
Subject: 2020 Tax Rates and Final Tax Due Dates Page 4
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 later this year. Staff's preliminary estimate for the final non-residential tax due date
is for the end of October.
Attachments:
1. By-law to Establish the 2020 Tax Rates for All Realty Classes and Final Instalment
Due Dates for All Residential Realty
Prepared By:
7
Mike Jones
Supervisor, Taxation
Approved / Endorsed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Coup
Tony Prevedel, P.Eng.
Chief Administrative Officer
Attachment #1 to Report #FIN 04-20
The Corporation of the City of Pickering
By-law No. 7752/20
Being a by-law to adopt the estimates of all sums required to be
raised by taxation for the year 2020 and to establish the Tax Rates
necessary to raise such sums and to 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 08-2020 to establish
tax ratios, By-law 10-2020 to adopt estimates of all sums required by The Regional
Municipality of Durham for the Durham Region Transit Commission, By-law 11-2020 to
set and levy rates of taxation for Regional Solid Waste Management, and By-law 09-
2020 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 2020 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 2020;
and,
Whereas an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law 7730/19 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 2020, The Corporation of the City of Pickering (the "City") on
February 24, 2020, approved Council Report FIN 02-20 and corresponding
schedules and attachments as presented, resulting in a taxation levy of
$69,828,621.
By-law No.7752/20 Page 2
2. For the year 2020, 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 2020.
4. The Tax Levy due dates for the Final Billing be August 27, 2020 and October 28,
2020 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 2020, 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.7752/20 Page 3
By-Iaw passed this 27th day of April 2020.
Kevin Ashe, Deputy Mayor
Susan Cassel, City Clerk
69,828,6211
2020 Budget Tax Levy
Schedule A - 2020 Calculated Tax Rates
1
2020 City Region Education Total Pickering Region Education Total
RTC Property Class - Taxable Phase -In Assessment Tax Rate Tax Rate Tax Rate Tax Rate Billing Billing Billing Billing
RT Residential 16,632,432,522 0.00325566 0.00585522 0.00153000 0.01064088 54,149,545 97,386,552 25,447,622 176,983,719
RD Residential-Educ only (Legion) - 0.00000000 0.00000000 0.00153000 0.00153000
FT Farm 164,399,400 0.00065113 0.00117105 0.00038250 0.00220468 107,045 192,520 62,883 362,448
TT Managed Forest 4,937,200 0.00081392 0.00146381 0.00038250 0.00266023 4,018 7,227 1,888 13,134
PT Pipelines 31,376,000 0.00400251 0.00719841 0.00980000 0.02100092 125,583 225,857 307,485 658,925
MT Multi -Residential 170,362,900 0.00607669 0.01092876 0.00153000 0.01853545 1,035,243 1,861,855 260,655 3,157,753
NT Multi -Residential (New Construction) - 0.00358123 0.00644074 0.00153000 0.01155197 - - - -
CT Commercial 1,047,286,401 0.00472071 0.00849007 0.00980000 0.02301078 4,943,935 8,891,535 10,263,407 24,098,877
CU Commercial - Excess Land 13,286,623 0.00472071 0.00849007 0.00980000 0.02301078 62,722 112,804 130,209 305,736
CX Commercial Vacant Land 88,198,000 0.00472071 0.00849007 0.00980000 0.02301078 416,357 748,807 864,340 2,029,505
XT Commercial (New Construction) Full 84,476,233 0.00472071 0.00849007 0.00980000 0.02301078 398,788 717,209 827,867 1,943,864
XU Commercial (New Construction) Exc Land 5,360,525 0.00472071 0.00849007 0.00980000 0.02301078 25,305 45,511 52,533 123,350
XX Commercial (New Construction) Vacant - 0.00472071 0.00849007 0.00980000 0.02301078 - - - -
ST Shopping Centres 656,252,536 0.00472071 0.00849007 0.00980000 0.02301078 3,097,978 5,571,630 6,431,275 15,100,883
SU Shopping Centres Excess Land 1,322,512 0.00472071 0.00849007 0.00980000 0.02301078 6,243 11,228 12,961 30,432
ZT Shopping Centre (New Construction) 41,292,960 0.00472071 0.00849007 0.00980000 0.02301078 194,932 350,580 404,671 950,183
ZU Shopping Ctr Exc Land (New Construction) 85,300 0.00472071 0.00849007 0.00980000 0.02301078 403 724 836 1,963
DT Office Building 87,016,543 0.00472071 0.00849007 0.00980000 0.02301078 410,780 738,777 852,762 2,002,319
DU Office Building Excess Land - 0.00472071 0.00849007 0.00980000 0.02301078
YT Office Building (New Construction) - 0.00472071 0.00849007 0.00980000 0.02301078 - - - -
GT Parking Lot 2,115,900 0.00472071 0.00849007 0.00980000 0.02301078 9,989 17,964 20,736 48,689
HT Landfill - 0.00358123 0.00644074 0.00153000 0.01002197 - - - -
IT Industrial 183,153,228 0.00658783 0.01184804 0.01250000 0.03093587 1,206,582 2,170,007 2,289,415 5,666,004
JT Industrial (New Construction) 13,004,100 0.00658783 0.01184804 0.00980000 0.02823587 85,669 154,073 127,440 367,182
IU Industrial Excess Land 1,561,800 0.00658783 0.01184804 0.01250000 0.03093587 10,289 18,504 19,523 48,316
IX Industrial Vacant Land 17,970,600 0.00658783 0.01184804 0.01250000 0.03093587 118,387 212,916 224,633 555,936
JU Industrial Excess Land (New Construction) 1,986,700 0.00658783 0.01184804 0.00980000 0.02823587 13,088 23,539 19,470 56,096
LT Large Industrial 54,016,500 0.00658783 0.01184804 0.01250000 0.03093587 355,852 639,990 675,206 1,671,047
LU Large Industrial - Excess Land 1,615,400 0.00658783 0.01184804 0.01250000 0.03093587 10,642 19,139 20,193 49,974
KT Large Industrial (New Construction) 17,233,000 0.00658783 0.01184804 0.00980000 0.02823587 113,528 204,177 168,883 486,589
KU Large Ind Excess Land (New Construction) - 0.00658783 0.01184804 0.00980000 0.02823587
-1 Farmland Awaiting Development 0.00244175 0.00439142 0.00114750 0.00798067 - - - -
Total Taxable 19,320,742,883 66,902,904 120,323,126 49,486,892 236,712,922
Property Class - Payments in Lieu
RF Residential 163,061,400 0.00325566 0.00585522 0.00153000 0.01064088 530,872 954,760 249,484 1,735,117
RP Residential - Tax Tenant 36,291,500 0.00325566 0.00585522 0.00153000 0.01064088 118,153 212,495 55,526 386,173
RG Residential - General 60,743,900 0.00325566 0.00585522 0.00000000 0.00911088 197,761 355,669 - 553,430
RH Residential - Full Shared PIL 258,200 0.00325566 0.00585522 0.00153000 0.01064088 841 1,512 395 2,747
FF Farm 122,105,900 0.00065113 0.00117105 0.00038250 0.00220468 79,507 142,992 46,706 269,204
FP Farm - Tax Tenant 28,824,000 0.00065113 0.00117105 0.00038250 0.00220468 18,768 33,754 11,025 63,548
CF Commercial Full 135,845,300 0.00472071 0.00849007 0.00980000 0.02301078 641,286 1,153,336 1,331,284 3,125,906
CH Commercial Full - Shared PIL 42,270,050 0.00472071 0.00849007 0.00980000 0.02301078 199,545 358,876 414,246 972,667
CP Commercial Full - Tax. Tenant 2,441,480 0.00472071 0.00849007 0.00980000 0.02301078 11,526 20,728 23,927 56,180
CG Commercial General 49,158,300 0.00472071 0.00849007 0.00000000 0.01321078 232,062 417,357 - 649,419
CV Commercial Full - Excess Land 2,478,100 0.00472071 0.00849007 0.00980000 0.02301078 11,698 21,039 24,285 57,023
CW Commercial General Excess Land 1,833,900 0.00472071 0.00849007 0.00000000 0.01321078 8,657 15,570 24,227
CZ Commercial Gen - Vacant Land 3,681,000 0.00472071 0.00849007 0.00000000 0.01321078 17,377 31,252 48,629
CJ Commercial - Vacant Land Shared PIL 0.00472071 0.00849007 0.00980000 0.02301078
DH Office Building Full - Shared PIL 27,365,915 0.00472071 0.00849007 0.00980000 0.02301078 129,187 232,339 268,186 629,711
IG Industrial General PIL 69,000 0.00658783 0.01184804 0.00000000 0.01843587 455 818 - 1,272
IH Industrial Full- Shared PIL 16,153,000 0.00658783 0.01184804 0.01250000 0.03093587 106,413 191,381 201,913 499,707
IP Industrial Full- Tax Tenant 413,500 0.00658783 0.01184804 0.01250000 0.03093587 2,724 4,899 5,169 12,792
IK Ind. Excess Land- Shared PIL 9,705,700 0.00658783 0.01184804 0.01250000 0.03093587 63,940 114,994 121,321 300,254
IQ Ind. Excess Land Tax Tenant PIL 264,500 0.00658783 0.01184804 0.01250000 0.03093587 1,742 3,134 3,306 8,183
IJ Industrial Vacant Land Shared PIL 3,110,000 0.00658783 0.01184804 0.01250000 0.03093587 20,488 36,847 38,875 96,211
LK Large Ind. Excess Land - Shared PIL 7,874,600 0.00658783 0.01184804 0.01250000 0.03093587 51,877 93,299 98,433 243,608
LI Large Ind. Water Intake - Shared PIL 9,865,200 0.00658783 0.01184804 0.01250000 0.03093587 64,990 116,883 123,315 305,189
LS Large Ind. Generating Station - Shared PIL 24,048,900 0.00658783 0.01184804 0.01250000 0.03093587 158,430 284,932 300,611 743,974
LN Large Ind. Non -Gen Stn - Shared PIL 39,083,955 0.00658783 0.01184804 0.01250000 0.03093587 257,478 463,068 488,549 1,209,096
Total PIL
786,947,300 2,925,777 5,261,935 3,806,556 11,994,268
Grand Totals
20,107,690,183 69,828,681 125,585,061 53,293,448 248,707,190