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Home My WebLink AboutCS 23-07 REPORT TO EXECUTIVE COMMITTEE Report Number: CS 23-07 Date: June 11, 2007 093 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2007 Tax Rates for all Classes of Property and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi- Residential Realty Classes Recommendation: 1. That Report CS 23-07 of the Director, Corporate Services & Treasurer be received; 2. That the 2007 Residential 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 July 11, 2007 and September 27, 2007 excluding the industrial, multi-residential and commercial realty tax classes; 4. That the attached By-law providing for the imposition of the tax rates approved under Recommendation 1 above, be read three times and approved; 5. That the Director, Corporate Services & Treasurer be authorized to make any changes or undertake any actions necessary, including altering due dates, in order to ensure the tax billing process is completed; 6. That the Director, Corporate Services & Treasurer be authorized to make any changes to the final tax rates to comply with Provincial regulations; 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 2007 Current Budget of the City of Pickering and to levy taxes for School Boards and for the Region of Durham. Report CS 23-07 Date: June 11, 2007 Subject: 200"7 Tax Rates and Final T ax Due Dates for All Realty Tax Classes Except for 094 Commercial, Industrial & Multi-Residential Realty Classes Page 2 Financial Implications: Adoption of the recommendations and passing the By-law will allow staff of the Corporate Services Department to bill the Final 2007 levy for all properties except for the industrial, commercial and multi-residential tax classes. Passing of the by-law will assist the City of Pickering to meet its financial obligations and reduce any borrowing costs. Sustainability Implications: Passing the attached By-law will allow the City to obtain the funds required to maintain it's financial sustainability objectives. Background: components: The 2007 final tax billing process will consist of two separate 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 summer. City's Net Tax Levy and Tax Rate Increase On April 2, 2007, City Council approved Report CS 16-07 of the Director, Corporate Services & Treasurer that provided for a property tax levy of $38,021,820 resulting in a budgetary increase of 8.79%. This increase is applied to the "City portion" of the property tax bill. Comparison of Pickerin~ts Residential Total Tax Rate with our Eastern Neiahbours i Pickering .01352624 3,787.00 ! Ajax .01375935 3,853.00 66.00 I i Whitby .01381364 3,868.00 81.00 LQ_~!!~~~___________.._______ ----------?~Q-~QQg----------- --:Q!?Q~?-~-~------.------- ---------~!?-~~:QQ--------- -----------~~~-~QQ---------j As the abovEl chart indicates, Pickering residents continue to enjoy having the lowest tax rates and therefore, are paying lower property taxes per assessment dollar. The total tax rates are used to facilitate an "apples to apples" comparison. Report CS 23-07 Date: June 11, 2007 Subject: 2007 Tax Rates and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Page 3 095 Re-Assessment Update Cancelled Bv Province When property tax reform was introduced in 1998, one of the major improvements to the existing system was the implementation of regular province-wide re-assessments. The Province implemented a re-assessment for the 2006 property taxation year based upon property values as of January 1, 2005 (from the previous valuation base of June 30,2003). The planned reassessment update of all properties in Ontario was cancelled for the 2007 & 2008 tax years, and therefore, the valuation date used to calculate the 2007 taxes will remain as January 1, 2005. Farm Class Ratio In 2005, Regional Council approved a reduction in the "Farm" ratio, that would be phased in over a three-year period. For 2007, the ratio decrease has been fully phased-in. The 2007 ratio is 0.2000, down from the 2005 ratio of 0.2333 and .2167 in 2006 All properties in the farm realty tax class will be paying 20% of the residential tax rate. Tax Due Date Instalments Recommendation 3 provides for the due dates for the payment of residential taxes being July 11, 2007 and September 27, 2007. The table below lists the tax instalment due dates for the last four years. Year 2007 2006 2005 2004 *2003 1 S Instalment Jul 11/07 Jul 7/06 Jul 15/05 Jul 16/04 Au ust 15/03 2" Instalment Se tember 27/07 Se tember 28/06 Se tember 29/05 Se tember 29/04 Se tember 26/03 *The 1 st instalment due date in 2003 was delayed until August due to late receipt of information required to prepare the final billing. Other Recommendations 2 and 3 provide for the levying of all tax rates on all classes of property except for the non-residential properties where the tax rates and the property taxes will be billed at a later date because the claw back percentages have not yet been determined. Staff have received advice that the claw back percentages should be included in the billing By-law. Therefore, staff will bring a separate report to Council regarding the non-residential tax rates and tax billing hopefully for Council's summer Report CS 23-07 Date: June 11, 2007 Subject: 2007 Tax Rates and Final 09& Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Page 4 meeting. Staff's preliminary estimate for the final non-residential due date is October 12,2007. Chanaes to the Billina Schedule Recommendation 5 and 6, will allow the Director, Corporate Services & Treasurer some latitude, limited by Provincial legislation, in effecting whatever may be necessary in order to ensure that the taxes are billed properly and in a timely fashion. It was always staff's understanding that Recommendation 5 would be used to change the due dates by a few days in order to meet Provincial legislation requirements. (Section 343, subsection one of the Municipal Act states the property owner must have at least twenty-one days to pay their taxes.) A report would be prepared to Council if there was a substantial delay in the billing of the final taxes. Attachments: 1. By-law to Establish the 2007 Tax Rates and Final Instalment Due Dates for All Realty Classes Except Non-Residential Prepared By: Approved I Endorsed By: /J~dR~ Susan Aitl<tfuhead Coordinator, Taxation Services ~~~~,~ Gillis A. Paterson> Director, Corporate Services & Treasurer GAP:vw Attachment Copy: Chief Administrative Officer Recommended for the consideration of Pickering Ci1~O /.I '7 '---- -----.- i~\rTACHiVIEf'fr # L TO REPORT # C5 ?i3-07 THE CORPORATION OF THE CITY OF PICKERING 097 BY-LAW NO. Being a By-law to adopt the estimates of all sums required to be raised by taxation for the year 2007 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 rateable 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. 36-2007 to establish tax ratios and By-law 35-2007 to adopt estimates of all sums required by The Regional Municipality of Durham for the Durham Region Transit Commission and By- law 34-2007 to set and levy rates of taxation for Regional Solid Waste Management and By-law No. 33-2007 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 2007 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 2007; and, WHEREAS an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 6721-07) 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 2007, The Corporation of the City of Pickering (the "City") on April 2, 2007, approved Council Report CS 16-07 and corresponding schedules and attachments as presented including the budgetary levy of $37,654,454 and assessment growth of $367,366 for a total tax levy of $38,021,820. 098 2. For the year 2007, 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 2007. 4. The Tax Levy due dates for the Final Billing be July 11,2007 and September 27, 2007 for all classes excluding the non-residential tax classes (commercial, industrial and multi-residential). 5. 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. 6. This By-law comes into force on the date of its final passing. BY-LAW read a first, second and third time and finally passed this 18th day of June 2007. David Ryan, Mayor Debi Bentley, Clerk 099 By-law No /07 Schedule A 2007 Tax Rates 2007 City Region Education Total Pickering Region Education TOTAL f2i8 Tax Rate Tax Rate Tax Rate Tax Rate Billina Billina J:!illir1g BILLING Prooertv Class Residential 7,896,962,499 0.00358903 0.00729721 0.00264000 0.01352624 28,342,440 57,625,794 20,847,981 106,816,215 Farm 72,491 ,740 0.00071780 0.00145945 0.00066000 0,00283725 52,035 105,798 47,845 205,677 Managed Forest 2,056,210 0.00089730 0.00182430 0.00066000 0.00338160 1,845 3,751 1,357 6,953 Pipelines 23,163,000 0.00441240 0.00897120 0.01586577 0.02924937 102,204 207,800 367,499 677,503 Multi-Residential 62,756,410 0.00669890 0.01362023 0.00264000 0.02295913 420,399 854,757 165,677 1,440,833 Commercial 701,199,583 0.00520410 0.01058096 0.01487553 0.03066059 3,649,113 7,419,365 10,430,715 21,499,193 Commercial - Excess Land 11,847,165 0.00364290 0.00740667 0.01041287 0.02146244 43,158 87,748 123,363 254,269 Commercial Vacant Land 7,269,000 0.00364290 0.00740667 0.01041287 0.02146244 26,480 53,839 75,691 156,010 Shopping Centres 296,350,542 0.00520410 0.01058096 0.01487553 0.03066059 1,542,238 3,135,673 4,408,371 9,086,282 Shopping Centres Excess Land 0.00364290 0.00740667 0.01041287 0.02146244 0 0 0 0 Office Building 40,529,245 0.00520410 0.01058096 0.01487553 0.03066059 210,918 428,838 602,894 1,242,651 Office Building Excess Land 0.00364290 0.00740667 0.01041287 0.02146244 Industrial 151,153,740 0.00811050 0.01649024 XXXXXXX XXXXXXX 1,225,932 2,492,561 Industrial Excess Land 3,122,685 0.00527180 0.01071887 XXXXXXX XXXXXXX 16,462 33,472 Industrial Vacant Land 28,651,000 0.00527180 0.01071887 XXXXXXX XXXXXXX 151,042 307,106 Large Industrial 23,963,240 0.00811050 0.01649024 XXXXXXX XXXXXXX 194,354 395,160 Large Industrial - Excess Land 1,291,760 0.00527180 0.01071887 XXXXXXX XXXXXXX 6,810 13,846 Parking Lot Full 0.00000000 0.00000000 0.00000000 0.00000000 Parking Lots Excess Land 0.00000000 0.00000000 0.00000000 0.00000000 Total 9322807819 35,985,431 73,165,508 37,071.393 146,222,333 Payments in Lieu Prooerties Residential 100,755,395 0.00358903 0.00729721 0.00264000 0.01352624 361,614 735,233 265,994 1,362,842 Residential- Tax Tenant 57,339,895 0.00358903 0.00729721 0.00264000 0.01352624 205,795 418,421 151,377 775,593 Residential - General 49,023,810 0.00358903 0.00729721 0.00000000 0.01088624 175,948 357,737 533,685 Farm 56,578,600 0.00071780 0.00145945 0.00066000 0.00283725 40,612 82,574 37,342 160,528 Farm - Tax Tenant 15,531,400 0.00071780 0.00145945 0.00066000 0.00283725 11,148 22,667 10,251 44,066 Commercial Full 47,885,170 0.00520410 0.01058096 0.01487553 0.03066059 249,199 506,671 712,317 1 ,468,188 Commercial Full - Shared PIL 31,852,225 0.00520410 0.01058096 0.01487553 0.03066059 165,762 337,027 473,819 976,608 Commercial Full- Tax. Tenant 2,522,350 0.00520410 0.01058096 0.01487553 0.03066059 13,127 26,689 37,521 77,337 Commercial General 9,771,550 0.00520410 0.01058096 0.00000000 0.01578506 50,852 103,392 154,245 Commercial Full - Excess Land 515,270 0.00364290 0.00740667 0.01041287 0.02146244 1,877 3,816 5,365 11,059 Commercial Full - Excess Land Tenant 0.00364290 0.00740667 0.01041287 0.02146244 Commercial General Excess Land 1,419,550 0.00364290 0.00740667 0.00000000 0.01104957 5,171 10,514 15,665 Commercial Gen - Vacant Land 2,550,000 0.00364290 0.00740667 0.00000000 0.01104957 9,289 18,887 28,176 Commercial Vacant Land Full 0.00364290 0.00740667 0.01041287 0.02146244 Office Buildin9 Full - Shared PIL 7,738,945 0.00520410 0.01058096 0.01467553 0.03066059 40,274 81,885 115,121 237,261 Parking Lot 0.00000000 0.00000000 0.00000000 0.00000000 Industrial Full 0.00811050 0.01649024 XXXXXXX XXXXXXX Industrial General 0.00811050 0.01649024 0.00000000 0.02460074 Industrial Full- Shared PIL 7,512.005 0.00811050 0.01649024 XXXXXXX XXXXXXX 60,926 123,875 Industrial Full- Tax Tenant 372,380 0.00811050 0.01649024 XXXXXXX XXXXXXX 3,020 6,141 Ind. Excess Land - Shared PIL 7,626,805 0.00527180 0.01071887 XXXXXXX XXXXXXX 40,207 81,751 Ind. Excess Land Tax Tenant PIL 329,620 0.00527180 0.01071887 XXXXXXX XXXXXXX 1,738 3,533 Industrial Excess Land Gen 0.00527180 0.01071887 XXXXXXX XXXXXXX Industrial Vacant Land Full 0.00527180 0.01071887 XXXXXXX XXXXXXX Industrial Vacant Land Gen 0.00527180 0.01071887 XXXXXXX XXXXXXX Industrial Vacant Land Shared PIL 2,038,000 0.00527180 0.01071887 XXXXXXX XXXXXXX 10,744 21,845 Large Industrial Full. Shared PIL 71,963,635 0.00811050 0.01649024 XXXXXXX XXXXXXX 563,661 1,186,698 Large Ind. Excess Land - Shared PIL 1,028,885 0.00527180 0.01071887 XXXXXXX XXXXXXX 5,424 11,028 Total PILS 474,355,490 2,036,389 4,140,385 1,809,108 5,845,292 Grand Total 38,021,820 77,305,894 38,880,501 152,067,625