HomeMy WebLinkAboutFIN 06-21 Report to Council
Report Number: FIN 06-21
Date: April 26, 2021
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2021 Tax Rates and Final Tax Due Dates
-File: F-4200-001
Recommendation:
1.That Report FIN 06-21 of the Director, Finance & Treasurer regarding the 2021
tax rates be received;
2.That the 2021 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 June 28, 2021 and September
28, 2021 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
2021 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 2021 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.
FIN 06-21 April 26, 2021
Subject: 2021 Tax Rates and Final Tax Due Dates Page 2
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Discussion: The 2021 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 2021 Budget provided for an average property tax increase of 1.45 per cent
and was adopted by Council through Finance Department Report FIN 05-21. The 2021
Council approved a budget levy of $70,841,695 plus assessment growth of $2,037,000
which translates into a total property tax levy of $72,878,695. The Region’s tax increase
for Pickering is 1.98 per cent and the School Board increase is zero, resulting in a total
average residential increase of approximately 1.54 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 June 28,
2021 and September 28, 2021.
Property Tax Deferral Program Update
The Property Tax Section, with Council approval (FIN 02-21) implemented a property tax
deferral program. The program allowed residential property owners the ability to pay the
regular tax payments for February 2021 and April 2021 by the end of May 2021. This is a
90 day deferral for the first payment and a 30 day d eferral for the second payment.
For the past two months, the program has been promoted in the local newspaper, social
media channels, local billboards, brochures, arrears notice and our website. At the time
of writing this report, there have been 24 applications submitted and all 24 applications
have been approved (which is a 100 percent acceptance rate). Last year, the City
provided a two month property tax deferral as it related to the April instalment. This
year’s program provided a more focused approach whereby those in need received the
financial assistance and the deferral period was longer. Another positive aspect
regarding this year’s program is that Pickering has now developed a website based
property tax deferral program that can adopted and or modified for any future need. In
FIN 06-21 April 26, 2021
Subject: 2021 Tax Rates and Final Tax Due Dates Page 3
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other words, we have a new time tested financial tool in our tool box to provide financial
assistance if and when the need arises.
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 later this year. Staff’s preliminary estimate for the final non -residential tax due date
is for the end of September.
Attachments:
1.By-law to Establish the 2021 Tax Rates for All Realty Classes and Final Instalment
Due Dates for All Residential Realty
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Mike Jones Stan Karwowski
Supervisor, Taxation Director, Finance & Taxation
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Chief Administrative Officer
Original Signed By:
Attachment #1 to Report #FIN 06-21
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 2021 and to establish the Tax Rates
necessary to raise such sums and to establish the final due dat es
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 07-2021 to establish
tax ratios, By-law 09-2021 to adopt estimates of all sums required by The Regional
Municipality of Durham for the Durham Region Transit Commission, By-law 10-2021 to
set and levy rates of taxation for Regional Solid Waste Management, and By-law 08-
2021 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 2021 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 2021;
and,
Whereas an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law 7792/20 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 2021, The Corporation of the City of Pickering (the “City”) on March
22, 2021 approved Council Report FIN 05-21 and corresponding schedules and
attachments as presented, resulting in a taxation levy of $72,878,695.
By-law No. Page 2
2. For the year 2021, 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 2021.
4. The Tax Levy due dates for the Final Billing be June 28, 2021 and September 28,
2021 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 2021, 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-law No. Page 3
By-law passed this 26th day of April, 2021.
______________________________
Dave Ryan, Mayor
______________________________
Susan Cassel, City Clerk
2021 Budget Tax Levy 72,878,695
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 17,268,186,389 0.00330151 0.00596893 0.00153000 0.01080044 57,011,090 103,072,596 26,420,325 186,504,011
RD Residential-Educ only (Legion)- 0.00000000 0.00000000 0.00153000 0.00153000 - - - -
FT Farm 161,169,600 0.00066030 0.00119379 0.00038250 0.00223659 106,420 192,403 61,647 360,470
TT Managed Forest 5,215,500 0.00082538 0.00149223 0.00038250 0.00270011 4,305 7,783 1,995 14,082
PT Pipelines 31,688,000 0.00405888 0.00733820 0.00880000 0.02019708 128,618 232,533 278,854 640,005
MT Multi-Residential 173,828,900 0.00616227 0.01114101 0.00153000 0.01883328 1,071,181 1,936,630 265,958 3,273,768
NT Multi-Residential (New Construction)- 0.00363166 0.00656582 0.00153000 0.01172748 - - - -
CT Commercial 1,046,969,067 0.00478719 0.00865494 0.00880000 0.02224213 5,012,040 9,061,454 9,213,328 23,286,822
CU Commercial - Excess Land 16,865,147 0.00478719 0.00865494 0.00880000 0.02224213 80,737 145,967 148,413 375,117
CX Commercial Vacant Land 53,627,000 0.00478719 0.00865494 0.00880000 0.02224213 256,723 464,138 471,918 1,192,779
XT Commercial (New Construction) Full 95,707,115 0.00478719 0.00865494 0.00880000 0.02224213 458,168 828,339 842,223 2,128,730
XU Commercial (New Construction) Exc Land 7,527,325 0.00478719 0.00865494 0.00880000 0.02224213 36,035 65,149 66,240 167,424
XX Commercial (New Construction) Vacant - 0.00478719 0.00865494 0.00880000 0.02224213 - - - -
ST Shopping Centres 648,900,953 0.00478719 0.00865494 0.00880000 0.02224213 3,106,412 5,616,199 5,710,328 14,432,939
SU Shopping Centres Excess Land 1,316,658 0.00478719 0.00865494 0.00880000 0.02224213 6,303 11,396 11,587 29,285
ZT Shopping Centre (New Construction)55,934,260 0.00478719 0.00865494 0.00880000 0.02224213 267,768 484,108 492,221 1,244,097
ZU Shopping Ctr Exc Land (New Construction)85,300 0.00478719 0.00865494 0.00880000 0.02224213 408 738 751 1,897
DT Office Building 84,945,252 0.00478719 0.00865494 0.00880000 0.02224213 406,649 735,196 747,518 1,889,363
DU Office Building Excess Land - 0.00478719 0.00865494 0.00880000 0.02224213 - - - -
YT Office Building (New Construction)- 0.00478719 0.00865494 0.00880000 0.02224213 - - - -
GT Parking Lot 2,098,900 0.00478719 0.00865494 0.00880000 0.02224213 10,048 18,166 18,470 46,684
HT Landfill - 0.00363166 0.00656582 0.00880000 0.01899748 - - - -
IT Industrial 184,882,683 0.00668061 0.01207813 0.00880000 0.02755874 1,235,129 2,233,037 1,626,968 5,095,134
JT Industrial (New Construction)13,004,100 0.00668061 0.01207813 0.00880000 0.02755874 86,875 157,065 114,436 358,377
IU Industrial Excess Land 1,100,858 0.00668061 0.01207813 0.00880000 0.02755874 7,354 13,296 9,688 30,338
IX Industrial Vacant Land 17,237,600 0.00668061 0.01207813 0.00880000 0.02755874 115,158 208,198 151,691 475,047
JU Industrial Excess Land (New Construction)1,986,700 0.00668061 0.01207813 0.00880000 0.02755874 13,272 23,996 17,483 54,751
LT Large Industrial 48,518,500 0.00668061 0.01207813 0.00880000 0.02755874 324,133 586,013 426,963 1,337,109
LU Large Industrial - Excess Land 1,615,400 0.00668061 0.01207813 0.00880000 0.02755874 10,792 19,511 14,216 44,518
KT Large Industrial (New Construction)17,266,000 0.00668061 0.01207813 0.00880000 0.02755874 115,347 208,541 151,941 475,829
KU Large Ind Excess Land (New Construction)- 0.00668061 0.01207813 0.00880000 0.02755874 - - - -
-1 Farmland Awaiting Development - 0.00247613 0.00447670 0.00114750 0.00810033 - - - -
Total Taxable 19,939,677,207 69,870,965 126,322,450 47,265,162 243,458,577
Property Class - Payments in Lieu
RF Residential 168,541,500 0.00330151 0.00596893 0.00153000 0.01080044 556,441 1,006,012 257,868 1,820,322
RP Residential - Tax Tenant 37,533,700 0.00330151 0.00596893 0.00153000 0.01080044 123,918 224,036 57,427 405,380
RG Residential - General 61,574,500 0.00330151 0.00596893 0.00000000 0.00927044 203,289 367,534 - 570,823
RH Residential - Full Shared PIL 240,200 0.00330151 0.00596893 0.00153000 0.01080044 793 1,434 368 2,594
FF Farm 119,182,900 0.00066030 0.00119379 0.00038250 0.00223659 78,696 142,279 45,587 266,563
FP Farm - Tax Tenant 26,520,600 0.00066030 0.00119379 0.00038250 0.00223659 17,512 31,660 10,144 59,316
CF Commercial Full 131,486,200 0.00478719 0.00865494 0.00980000 0.02324213 629,449 1,138,005 1,288,565 3,056,019
CH Commercial Full - Shared PIL 42,271,350 0.00478719 0.00865494 0.00980000 0.02324213 202,361 365,856 414,259 982,476
CP Commercial Full - Tax. Tenant 1,663,800 0.00478719 0.00865494 0.00980000 0.02324213 7,965 14,400 16,305 38,670
CG Commercial General 49,452,600 0.00478719 0.00865494 0.00000000 0.01344213 236,739 428,009 - 664,748
CV Commercial Full - Excess Land 2,478,100 0.00478719 0.00865494 0.00980000 0.02324213 11,863 21,448 24,285 57,596
CW Commercial General Excess Land 1,833,900 0.00478719 0.00865494 0.00000000 0.01344213 8,779 15,872 - 24,652
CZ Commercial Gen - Vacant Land 3,888,000 0.00478719 0.00865494 0.00000000 0.01344213 18,613 33,650 - 52,263
CJ Commercial - Vacant Land Shared PIL - 0.00478719 0.00865494 0.00980000 0.02324213 - - - -
DH Office Building Full - Shared PIL 27,365,915 0.00478719 0.00865494 0.00980000 0.02324213 131,006 236,850 268,186 636,042
IG Industrial General PIL 69,000 0.00668061 0.01207813 0.00000000 0.01875874 461 833 - 1,294
IH Industrial Full- Shared PIL 16,152,700 0.00668061 0.01207813 0.01250000 0.03125874 107,910 195,094 201,909 504,913
IP Industrial Full- Tax Tenant 280,900 0.00668061 0.01207813 0.01250000 0.03125874 1,877 3,393 3,511 8,781
IK Ind. Excess Land - Shared PIL 9,705,700 0.00668061 0.01207813 0.01250000 0.03125874 64,840 117,227 121,321 303,388
IQ Ind. Excess Land Tax Tenant PIL - 0.00668061 0.01207813 0.01250000 0.03125874 0 0 0 0
IJ Industrial Vacant Land Shared PIL 3,110,000 0.00668061 0.01207813 0.01250000 0.03125874 20,777 37,563 38,875 97,215
IZ Industrial Vacant Land General PIL 477,000 0.00668061 0.01207813 0.00000000 0.01875874
LK Large Ind. Excess Land - Shared PIL 7,874,600 0.00668061 0.01207813 0.01250000 0.03125874 52,607 95,110 98,433 246,150
LI Large Ind. Water Intake - Shared PIL 9,865,200 0.00668061 0.01207813 0.01250000 0.03125874 65,906 119,153 123,315 308,374
LS Large Ind. Generating Station - Shared PIL 24,048,900 0.00668061 0.01207813 0.01250000 0.03125874 160,661 290,466 300,611 751,738
LN Large Ind. Non-Gen Stn - Shared PIL 45,226,635 0.00668061 0.01207813 0.01250000 0.03125874 302,142 546,253 565,333 1,413,728
Total PIL 790,843,900 3,004,604 5,432,140 3,836,303 12,273,046
Grand Totals 20,730,521,107 72,875,569 131,754,590 51,101,464 255,731,624
Schedule A - 2021 Calculated Tax Rates