HomeMy WebLinkAboutFIN 07-22Report to Council
Report Number: FIN 07-22
Date: April 25, 2022
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2022 Tax Rates and Final Tax Due Dates
-File: F-4200-001
Recommendation:
1.That Report FIN 07-22 of the Director, Finance & Treasurer regarding the 2022
tax rates be received;
2.That the 2022 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, 2022 and September
28, 2022 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
2022 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 2022 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 07-22 April 25, 2022
Subject: 2022 Tax Rates and Final Tax Due Dates Page 2
______________________________________________________________________
Discussion: The 2022 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 2022 Budget provided for an average property tax increase of 1.79 per cent
and was adopted by Council through Report FIN 06-22. The 2022 Council approved a
budget levy of $74,183,234 plus assessment growth of $1,900,600 which translates into
a total property tax levy of $76,083,834. The Region’s tax increase for Pickering is 2.60
per cent and the School Board increase is zero, resulting in a total average residential
increase of approximately 1.98 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 three sets the due dates for the payment of residential taxes at June
28, 2022 and September 28, 2022.
Property Tax Deferral Program Update
The Property Tax Section, with Council approval (FIN 06-22), has implemented a
pandemic property tax deferral program for 2022. The program will allow qualifying
residential property owners the ability to pay the regular tax payments for April 2022,
June 2022 and September 2022 by the end of October 2022. The City also provided a
similar deferral program in 2021 for the June and September instalments.
This year’s program provides relief to taxpayers with continuing financial hardships due
to the pandemic. Taxpayers that request assistance will be required to demonstrate and
provide supporting documentation of financial hardship as a result of COVID-19. Another
positive aspect regarding this program is that Pickering has developed a website based
property tax deferral program that can adopted and or modified for any future need. In
other words, we have a time tested financial tool in our tool box to provide financial
assistance if and when the need arises.
FIN 07-22 April 25, 2022
Subject: 2022 Tax Rates and Final Tax Due Dates Page 3
______________________________________________________________________
The program will be promoted through various communication avenues such as the
property tax brochure (final), community page ad, City website and social media outlets.
Staff would also welcome Council’s assistance by referencing this program through their
regular communication channels with their residents.
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 two and three 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 2022 Tax Rates for All Realty Classes and Final Instalment
Due Dates for All Residential Realty
FIN 07-22 April 25, 2022
Subject: 2022 Tax Rates and Final Tax Due Dates Page 4
______________________________________________________________________
Prepared By: Approved/Endorsed By:
Karen Uphoff James Halsall
(Acting) Supervisor, Taxation Division Head, Finance
Approved/Endorsed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Chief Administrative Officer
Original Signed By:Original Signed By:
Original Signed By:
Original Signed By:
Attachment #1 to Report #FIN 07-22
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 2022 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 06-2022 to establish
tax ratios, By-law 08-2022 to adopt estimates of all sums required by The Regional
Municipality of Durham for the Durham Region Transit Commission, By-law 09-2022 to
set and levy rates of taxation for Regional Solid Waste Management, and By-law 07-
2022 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 2022 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 2022;
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 2022, The Corporation of the City of Pickering (the “City”) on March
28, 2022 approved Council Report FIN 06-22 and corresponding schedules and
attachments as presented, resulting in a taxation levy of $76,083,834.
By-law No. Page 2
2.For the year 2022, 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 2022.
4.The Tax Levy due dates for the Final Billing be June 28, 2022 and September 28,
2022 for all classes excluding the non-residential tax classes (commercial,
industrial, and multi-residential).
5.The Treasurer is hereby 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 hereby 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 hereby 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 2022, 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 25th day of April, 2022.
______________________________
Dave Ryan, Mayor
______________________________
Susan Cassel, City Clerk
Schedule I
2022 Budget Tax Levy 76,083,834 2022 Calculated Tax Rates
2022 Tax Weighted & Disc City Region Education Total Pickering Region Education TOTAL
RTC Phase-In Ratios Assmt Tax Rate Tax Rate Tax Rate Tax Rate Billing Billing Billing BILLING
Property Class 0.00335906 0.00122457
RT Residential 17,569,640,798 1.0000 17,569,640,798 0.00335906 0.00612285 0.00153000 0.01101191 59,017,478 107,576,275 26,881,550 193,475,303
FT Farm 161,766,800 0.2000 32,353,360 0.00067181 0.00122457 0.00038250 0.00227888 108,677 198,095 61,876 368,647
TT Managed Forest 5,114,900 0.2500 1,278,725 0.00083977 0.00153071 0.00038250 0.00275298 4,295 7,829 1,956 14,081
PT Pipelines 32,582,000 1.2294 40,056,311 0.00412963 0.00752743 0.00880000 0.02045706 134,552 245,259 286,722 666,532
MT Multi-Residential 192,471,300 1.8665 359,247,681 0.00626969 0.01142831 0.00153000 0.01922800 1,206,735 2,199,622 294,481 3,700,838
CT Commercial 1,031,979,313 1.4500 1,496,370,004 0.00487064 0.00887813 0.00880000 0.02254877 5,026,400 9,162,046 9,081,418 23,269,864
CU Commercial - Excess Land 24,139,951 1.4500 35,002,929 0.00487064 0.00887813 0.00880000 0.02254877 117,577 214,318 212,432 544,326
CX Commercial Vacant Land 33,775,300 1.4500 48,974,185 0.00487064 0.00887813 0.00880000 0.02254877 164,507 299,862 297,223 761,591
XT Commercial (New Construction) Full 293,907,175 1.4500 426,165,404 0.00487064 0.00887813 0.00880000 0.02254877 1,431,516 2,609,346 2,586,383 6,627,245
XU Commercial (New Construction) Exc Land 5,405,825 1.4500 7,838,446 0.00487064 0.00887813 0.00880000 0.02254877 26,330 47,994 47,571 121,895
ST Shopping Centres 634,914,891 1.4500 920,626,592 0.00487064 0.00887813 0.00880000 0.02254877 3,092,442 5,636,857 5,587,251 14,316,550
SU Shopping Centres Excess Land 1,643,658 1.4500 2,383,304 0.00487064 0.00887813 0.00880000 0.02254877 8,006 14,593 14,464 37,062
ZT Shopping Centre (New Construction)62,465,800 1.4500 90,575,410 0.00487064 0.00887813 0.00880000 0.02254877 304,248 554,579 549,699 1,408,527
ZU Shopping Ctr Exc Land (New Construction)88,000 1.4500 127,600 0.00487064 0.00887813 0.00880000 0.02254877 429 781 774 1,984
DT Office Building 81,192,264 1.4500 117,728,783 0.00487064 0.00887813 0.00880000 0.02254877 395,458 720,835 714,492 1,830,786
GT Parking Lot 2,098,900 1.4500 3,043,405 0.00487064 0.00887813 0.00880000 0.02254877 10,223 18,634 18,470 47,328
IT Industrial 191,075,283 2.0235 386,640,835 0.00679706 0.01238959 0.00880000 0.02798665 1,298,750 2,367,344 1,681,462 5,347,557
JT Industrial (New Construction)13,004,100 2.0235 26,313,796 0.00679706 0.01238959 0.00880000 0.02798665 88,390 161,115 114,436 363,941
IU Industrial Excess Land 1,100,858 2.0235 2,227,586 0.00679706 0.01238959 0.00880000 0.02798665 7,483 13,639 9,688 30,809
IX Industrial Vacant Land 15,744,600 2.0235 31,859,198 0.00679706 0.01238959 0.00880000 0.02798665 107,017 195,069 138,552 440,639
JU Industrial Excess Land (New Construction)1,986,700 2.0235 4,020,087 0.00679706 0.01238959 0.00880000 0.02798665 13,504 24,614 17,483 55,601
LT Large Industrial 48,518,500 2.0235 98,177,185 0.00679706 0.01238959 0.00880000 0.02798665 329,783 601,124 426,963 1,357,870
LU Large Industrial - Excess Land 1,615,400 2.0235 3,268,762 0.00679706 0.01238959 0.00880000 0.02798665 10,980 20,014 14,216 45,210
KT Large Industrial (New Construction)17,266,000 2.0235 34,937,751 0.00679706 0.01238959 0.00880000 0.02798665 117,358 213,919 151,941 483,217
Total Taxable 20,423,498,316 21,738,858,138 73,022,137 133,103,765 49,191,504 255,317,405
Payments in Lieu Properties
RF Residential 168,286,200 1.0000 168,286,200 0.00335906 0.00612285 0.00153000 0.01101191 565,283 1,030,391 257,478 1,853,152
RP Residential - Tax Tenant 42,522,900 1.0000 42,522,900 0.00335906 0.00612285 0.00153000 0.01101191 142,837 260,361 65,060 468,258
RG Residential - General 59,035,000 1.0000 59,035,000 0.00335906 0.00612285 0.00000000 0.00948191 198,302 361,462 0 559,765
RH Residential - Full Shared PIL 240,200 1.0000 240,200 0.00335906 0.00612285 0.00153000 0.01101191 807 1,471 368 2,645
FF Farm 119,182,900 0.2000 23,836,580 0.00067181 0.00122457 0.00038250 0.00227888 80,068 145,948 45,587 271,604
FP Farm - Tax Tenant 20,164,600 0.2000 4,032,920 0.00067181 0.00122457 0.00038250 0.00227888 13,547 24,693 7,713 45,953
CF Commercial Full 131,888,800 1.4500 191,238,760 0.00487064 0.00887813 0.00980000 0.02354877 642,383 1,170,926 1,292,510 3,105,819
CH Commercial Full - Shared PIL 42,270,350 1.4500 61,292,008 0.00487064 0.00887813 0.00980000 0.02354877 205,884 375,282 414,249 995,415
CP Commercial Full - Tax. Tenant 1,663,800 1.4500 2,412,510 0.00487064 0.00887813 0.00980000 0.02354877 8,104 14,771 16,305 39,180
CG Commercial General 49,487,900 1.4500 71,757,455 0.00487064 0.00887813 0.00000000 0.01374877 241,038 439,360 0 680,398
CV Commercial Full - Excess Land 2,478,100 1.4500 3,593,245 0.00487064 0.00887813 0.00980000 0.02354877 12,070 22,001 24,285 58,356
CW Commercial General Excess Land 1,833,900 1.4500 2,659,155 0.00487064 0.00887813 0.00000000 0.01374877 8,932 16,282 0 25,214
CZ Commercial Gen - Vacant Land 3,888,000 1.4500 5,637,600 0.00487064 0.00887813 0.00000000 0.01374877 18,937 34,518 0 53,455
CJ Commercial - Vacant Land Shared PIL - 1.4500 - 0.00487064 0.00887813 0.00980000 0.02354877 - - - -
DH Office Building Full - Shared PIL 27,365,915 1.4500 39,680,577 0.00487064 0.00887813 0.00980000 0.02354877 133,290 242,958 268,186 644,434
IG Industrial General PIL 69,000 2.0235 139,622 0.00679706 0.01238959 0.00000000 0.01918665 469 855 0 1,324
IH Industrial Full- Shared PIL 23,431,800 2.0235 47,414,247 0.00679706 0.01238959 0.01250000 0.03168665 159,267 290,310 292,898 742,475
IP Industrial Full- Tax Tenant 280,900 2.0235 568,401 0.00679706 0.01238959 0.01250000 0.03168665 1,909 3,480 3,511 8,901
IK Ind. Excess Land - Shared PIL 2,576,600 2.0235 5,213,750 0.00679706 0.01238959 0.01250000 0.03168665 17,513 31,923 32,208 81,644
IQ Ind. Excess Land Tax Tenant PIL - 2.0235 - 0.00679706 0.01238959 0.01250000 0.03168665 - - - -
IJ Industrial Vacant Land Shared PIL 3,110,000 2.0235 6,293,085 0.00679706 0.01238959 0.01250000 0.03168665 21,139 38,532 38,875 98,545
IZ Industrial Vacant Land General PIL 515,000 2.0235 1,042,103 0.00679706 0.01238959 0.00000000 0.01918665 3,500 6,381 0 9,881
LK Large Ind. Excess Land - Shared PIL 7,874,600 2.0235 15,934,253 0.00679706 0.01238959 0.01250000 0.03168665 53,524 97,563 98,433 249,520
LI Large Ind. Water Intake - Shared PIL 9,865,200 2.0235 19,962,232 0.00679706 0.01238959 0.01250000 0.03168665 67,054 122,226 123,315 312,595
LS Large Ind. Generating Station - Shared PIL 24,048,900 2.0235 48,662,949 0.00679706 0.01238959 0.01250000 0.03168665 163,462 297,956 300,611 762,029
LN Large Ind. Non-Gen Stn - Shared PIL 44,501,635 2.0235 90,049,058 0.00679706 0.01238959 0.01250000 0.03168665 302,480 551,357 556,270 1,410,108
Total PILS 786,582,200 911,504,810 3,061,800 5,581,007 3,837,863 12,480,670
Grand Totals 21,210,080,516 22,650,362,947 76,083,937 138,684,772 53,029,366 267,798,075