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FROM:
Gillis A. Paterson
Director of Finance & Treasurer
DATE: February 8, 1999
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REPORT NUMBER: FIN03/99
SUBJECT:
Bill 79, the Fairness for Property Taxpayers Aet 1998
RECOMMENDATION:
II is recommend that:
The Council of the Town of Pickering supports the adoption of the provIsions of Bill 79,
Division B, prior to February 28, 1999.
ORIGIN:
Director of Finance & Treasurer
AUTHORITY:
Municipal Act, R.S.O. 1990, as amended.
Fairness ror Property Taxpayers Act, 1998 (Bill 79)
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FINANCIAL IMPLICATIONS:
While the decision regarding implementation of Bill 79 is an upper tier responsibility, it is
important for Pickering Councilors to made aware of the various options regarding Bill 79 and
their financial consequcnces.
EXECUTIVE SUMMARY;
Bill 79, (the Fairness For Property Taxpayers Act 1998) limits property tax increases due to
property tax reform to 10 per cent in 1998, 5 per cent in 1999 and a further 5 per cent in 2000
for the industrial, commercial and multi-residential realty classes. However, a property could also
experience property tax increases above the 10-5-5 limit under several situations such as:
· physical changes arc made to the property (e.g. new construction or renovation),
· change in use such as commercial to industrial,
· change in vacancy (e.g. vacant property becomes occupied) and
· municipal levy changes.
rrom an economic perspective, Bill 79 is the transfer of realty tax dollars from onc taxpayer to
another within the broad realty class. There are winners and losers with the introduction of this
13i II.
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The upper tier municipality is responsible for the tax policy decision rcgarding the selection of
the implementation direction. To reach the goals of the capping Icgislation, Bill 79 provides the
municipality with the choice of two options - Division Band C. Under Division B you are
allowed a proportional claw back or the decreases to pay for thc capped increases. Under
Report to Council FIN03-99
February 8, 1999
Bill 7(), The Fairness for Property Taxpayers Aet 1998
Page 2
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Division C, you arc not able to recover the lost 1998 tax revenue for the capped increases.
Therefore, the Town would have to consider raising taxes in I C)C)C) to recover the lost 1998 tax
revenue.
Additional information regardiBg Bill 79 can be in the ~llached document entitled "Tax
Legislation Bulletin - 10/5/5% Cap for Comlllercial, Industrial and Multi-residential Properties."
BACKGROUND:
In 1998, the Province of Ontario implemented property tax reform under the Ontario Fair
Assessment System (OF AS). Legislation governing the new system is covered under three
separate acts:
. rair Municipal Finance Act (Bill lOG),
. Fair Municipal Finance Act 2 (Bill 149), and
. Small Business & Charities Protection Act (Bill IG).
The new property tax system established a common base from which the assessed value of all
properties is equitably measured. Each property will have its current value asscssed based on the
market value of the property in June 1996. With the new current assessment system, many of
the inequities of the former system were eliminated. Every property in Ontario was assessed
under the same methodology.
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The Province also eliminated the Business Occupancy Tax (BOT). Historieally, BOT was
determined by taking the busincss assessment of a particular property and applying the
commercial mill rate to generate the business tax. (The BOT tax was basically based on
business type and therefore, a small business could be paying 250ft) of the eommercial rate in
contrast to a brewery that would be paying 75%)). This business tax was paid by the business
operating out of the property rather than the property owner. Tax arrears were higher for BOT in
contrast to commercial realty taxes due to the fact you can not collect from bankrupt businesses.
The lost rcvenue from the BOT was recovered by an increased tax rate for the commercial and
industrial realty classes. The elimination of the BOT was in many instanees a benefIt to big
business and increased the tax responsibility for small business. When the Province rcstructured
the funding of local education, properties in the commercial and il1llustrial tax classes did not
share in the "education tax room" that was created during the local serviees realignment between
the Province and the municipalities. As a result, taxation responsibility withi'n the
commercial/industrial property classes has increased at a greater rate in contrast to residential
realty taxes.
Many property owners in the industrial and commercial property classes experienced a wide
range of increases and decreases mainly due to the above mentioned reforms.. To reduce these
increases, thc Province introduced Bill 79 to limit/cap the increascs and claw back the decreases.
Capping of the increascs is to be funded by withholding decreases within the same general f~lmily
of classes. In other words, industrial and large industrial decreases are pooled together to pay for
the capped increases ~!1 their combined class.
Because of the self-financing aspect of the legislation within the general realty class, tax
decreases will have to be clawed back. The ClllTent estimates of decrease claw-backs are as
follows:
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Industrial
Comlllereial
IV! lilt i-residential
Estimate %
Decrease Clawhack
81
84
65
(The above decrease percentaaes are based on current Provincial Reaulations as of Februarv 4,
Reporllo Council FIN03-99
February 8, 1999
Bill 79, The Fairness lor Property Taxpayers Act 1998
Page 3
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Under Bill 79, if you arc a commercial property owner and you received a $1,000 decrease uue to
property tax rcform in 19<)8, you would have to return $840 in 1999. For many owners, the
Illlluing of the claw back, may cause financial strain.
For the Town of Pickering, a breakdown of the capped increases and decreases is shown on table
onc.
Table One
Summary of Bi II 79 Increases/Decreases for the Town of Pickering
IJroperty
Property Description ~ COli II t
M ulli-Residential Capped Increase (10,000) 2
Decrease Clawed Back 67.000 0-
Sub- Total (57 ,000) li
Commercial Cappeu Increase (3,008,000) 410
Decrease Claweu Back I ,855,000 291
Sub- Total (J,J 53,000) 1.Ql
- Industrial Cappcu Increasc (559,000) 177
Decrease Clawed Back 96,000 40
Sub-Total (463,000) ill
TOTAL All Classes Capped Increase (3,577,000) 589
Decrease Clawed Back 2,018.000 337
Total u..559.000) Wi
The Region of Durham, is responsible for redistributing shortfalls or surpluses within the Area
Municipalitics. The Region of Durham will act as a "banker" in order to re-distribute the ful1tls
among the Area Municipalities as they did with the residential phase-in.
To implcment Bill 79, the upper tier municipality may choose two directions as outlined under
the Act as Division B and Division C.
Division B contains thc capping provisions and allows municipalitics to claw back 1998
decreases to pay lor the reduced tax dollars due to thc capping of property taxes. Division C
alluws the samc tax capping to occur, howcvcr, municipalitics will have lost the opportunity to
claw back dccreases. In order to exercise Division B, of Bill 79, the Region of Durham must
approve the Division B provisions by February 28, 1999. If Division B is not approved by
Regional Council by the end of February, the Town of Pickering and the Region will
AUTOMATICALLY DEFAULT to the provisions of Division C.
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For the Town of Pickering ratepayers, the Division C option transbtes into an additional $3.577
million to be funded by a tax increase of the Region and the Town. The Region and the Town
would also be responsible for paying the school boards the education tax that is levied regardless
of the municipalities loss in revenue.
Table two proviues a brief summary of the effects of both Division Band C of Bill 79.
Report to Council FIN03-99
February 8, 1999
Bill 79, The Fairness [or Property Taxpayers Act 1998
Page 4
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Table Two
8ill 79 -- 10/5/5 Capping for
Commercial, Industrial 8<. Multi-Residential
Line II e m Division 8 Division C
A Tax Cap Reductions $3,577,000 $3,577,000
l3 ProDertv Class Claw back - Pickering $2,018,000
C Property Class Claw back -- Other $1,559,000
D Tax Increase - Pickerin.g & Region $3,577,000
E Total Tax Recovery $3,577 ,000 $3,577,000
Under Division B or C, the total tax dollar recovered as indicated under line E is the same. The
major difference is that under Division B, Pickering is able to claw back $2,018,000 (line B) and
receives the Regional claw back of $1 ,559,000 (line C) recovered from capped decreases in other
municipal i tics.
(n ordcr to calculate the capped increases, the "Town of Pickering" must maintain a "frozen
assessment roll" which contains a revised 1997 assessment for each property to be used to
calculate the tax cap for 1998, 1999 and 2000. The frozen roll l11ust be continually undated to
rellect changes in assessed values including construction, renovations and changes in vacancies.
In addition, any new business not in existence in 1997, has to be included in the Jj'ozen
assessment roll and their value has to be factored into the capping calculations.
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Capping calculations arc based on Provincially mandated formula and involve a series of
calculations that must be performed for each property in the commercial/industrial and l11ulti-
rcsidcntial tax classes. These calculations arc extremely complicated and will be difficult to
convey to taxpayers. The Town of Pickering will use the information provided by the Region and
the Province's On Line Property Tax Analysis Computer System (OPT A) to do the required
calculations of Bill 79. The OPTA database will rellect assessment information as of .IUIll' l'
1998. Therefore, any assessment changes li'om that date such as changes in use, minutes 01
selllcment, supplementary assessments will not be rellected. The Town of Pickering will h:.
lv maintain an inventory of all changes to the assessed roll as of June 15, 1998.
The Province has promised that the OPT A system will produce a one-page summary I'm
affected property. As of February 5, 1999, 1I1. OPTA system is still not operating. It is I"
rhat OPTA will be functional by the end of February.
'own of Pickering will be required 10 provide a tax notice with the tax bill ;\:
.. illcial rcgulations. OPT A can prO\ lue the required information to meet the 1'1-
. ,,,glll<llions. However, there may be situations where the capping information }.,
OPTA may not be correct such us adding properties through supplementary assessments,
situation, the Town of Picke 1 have to pul! the OPTA tax notice and manually iSSlle :,
corrcct olle. The munual inv\.: %csscd ,. changes should identify the incorrect tax bills
issued by OPTA.
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Bill 79 prohibits interim billing for m' 1-["1
adjustments for 1998 are lin""
REVISED separate tax bill [VI
bill or combining both. The bi!.
revised bills will be ready. The del;
'S.\~,f\\I\lJilJ ~'i'I 'roM ~'I't~~'>h 1i~venue.
e T,
! the
ial, commercial and industrial classes unlii ,...
J[ Pickering will have the option of issuin!! a
,\, .wing shortly after with the interim 199'
primarily dependent upon as to when 1I~
) interim bi Ils which cost the Town an esti II:
CISIlJ I
,the '
Report to Council FIN03-99
February 8, 1999
Bill 79, The raimess for Property Taxpayers Act 1998
Page 5
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In addition to the lost interest revenue, the Town of Pickering will experience additional costs
associated with Bill 79. These cstimated costs are at present:
Communication Strategy
Advertising
Information Brochure
Total
$1,236
5,000
$6,236
Increase in Audit Fees
To verify Capping calculations
2,000
Bill 79 Workshops/Training
Bill 79 Standardized Tax Statements
Total Estimated Direct Costs
1,400
1,260
$10.896
The above estimate excludes any intellla] staff costs and any additional costs associated with
changes to the tax billing sofiware. In addition, it is anticipated that after the revised 1998 tax
bills are issued that there will be a large volume of phone calls and meetings from the claw back
realty group. The Provincc of Ontario has indicated that it will assist municipalities witll the
additional cost associated with the tax adjustments caused by Bill 79. However, there are NO
details regarding the financial assistance.
,...
Since December 15, 1998, the Provincial Government has issued 15 Regulations regarding the
implementation of Bill 79. We have heard 1I1at there are at least ten more Regulations to be
issued. (Regulations provide the detail information and are critical to the implemcntation of the
legislation). Weare currently in year two of a three-year program and we are expecting more
legislation in the future to address the problcms of Bill 79 and an exit strategy to address the end
of this program on December 31, 2000.
ATTAClIMENTS:
I. Tax Legislation Bulletin - Ministry of Finance
Prepared By:
Approved / Endorsed By:
-"/~ ~..~
..,~ .~
Stan Karwowski
Manager of Finance
_./-/cti~/? f
Gillis A. Paterson
Director of Finance & Treasurer
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...
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SK/md
Attachment
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Recommended for the consideration of
Pickering Town Council
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irrl. j- / rr
. ative Wfu:er
TAX LEGISLATiON BULLETiN
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10/.:,5% CAP FOR COMME::1CIAL. INOUSjRJAL
to,NO MUL TI-RESIDENTJAL FROFERTiES
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Background
In 1 SSE, property tax re7: rm was implemented in the Province of Ontario. Under the
new Or.tario Fair Asses's,-;;ent System (OFAS), t.he assessed value of all prcperties for
1998. 1999 and 2000 is :ased on current value as at June 30, 1996.
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As par: of the nevI sysle..-:-:. municipalities were provide_d with optional progr~Q}~, 9r_
_"tooLs', which-they could ~se-to ensure reforms v/ere I-hanage-able. --These voluntary
mi'tigc.tion tools include g:-2.duated tax rates for ccmmerCia! and industrial prcperties,
phase-ins of tax changes, a muniCipal rebate orogram; optional prooerty dasses and a
- 2.5 per cent :ap on tax increases.
When it wecame appare!it that many businesses were facing unmanageabfe property
tax increases, the province introduced fimits on reform-related tax increases __ 10 per
cer.t in 1998, a further 5 ~er cent in 1999 and a further 5 per cent in 2000. (Bill 79, the
Fairness for Property Taxpayers Act, 1998, received Royal Assent on December 18,
1998.) This would apply in all municipalities except the City or Toronto which chose to
Iii nit increases to 2.5 per cent each year for 1998, 1999 and 2000 using the 2.5% cap.
The limits on tax increases ensure that no owner or tenant of commercial or industrial
property will face a tax inciease related to property tax reform of more than 10 per cent
in 1998 and a further 5 per cent in each of 1999 and 2000. Owners of multi-residential
properties will be protecte.: in the same manner for 1998, 1999 and 2000.
Also as part of Bill 79, the Province provided municipalities with a new tool __ a "10/5/5
cap" -- which provides municipalities with a means to meet the 10/5/5 limits on tax
Increases,
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Tax ~2.::cs adepte:: for 1 ~~2 ~axa:;cn are also frozsn fer 1 S98, 19S9 and ,2000 as a ,
me2..'IS ~C pre'lem tax shi7':s CnTO residential properties. Where mUCli~ipalities chco!56
:)pticnaJ ,:ropert'f classes. ~~e tax ratios of these da~~es may vary only to -the.:extent
that the 'Neighed average fer the broader c1c::,ss is maintained. (A broader prcperty class
includes 2.11 optional classes cGri'led from the standard class -- either the commercia! or
industria! class.)
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As an exception to the freeze on iax ratios, municipalities can request the Minister of
Finance to authorize a change in tax ratios to move them closer to the ranges or tax
fairness. .
. ....-.....-.
Alternat:'.'eiy, with the apprc'/al of the Minister of Finance, municipalities can reduce
their i2X r2.tes, lower than what their ratios would require, to provide an annual tax
decr.:-:ase for prope~ies in a specific property class.
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Limits on Tax Increases
The 10/5/5 limits on tax increases are referred to as "maximum tax thresholds".
Essentially, where the property tax levied is more than the maximum tax threshofd no
owner is legally required to pay any amount of property tax above the threshold.
Similarly, an owner cannot pass un more property tax than the tenant's threshold would
allow (i.e. in 1998, 10% more than 1997 taxes paid, and any municipal levy change and
education tax cut). ,-,
If a municipality does not use the tools available to them, or if they are not used
sufficiently to ensure that the taxes on Ell properties in the commercial, industrial or
multi-residential classes stay below the threshold, a municipality will face a loss in
revenue. Th~ amount of the loss would be the amount of taxes exceeding the
maximum tax threshold.
This revenue loss must be completely absorbed by the municipality. In a two tier
structure, the loss must be shared between the local and the upper tier municipalities.
Municipalities 1,vill be required to pay the school boards the education tax that is levied
regarciess of the municipalities loss in revenue.
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Cr:C~ES. 2.r:C \Vlner:es.
New Tcel - 10/5/5 Cap
Under Seelcr. 447,44 of the Municipel .A,c: (Division B of the legislation) munic:palities
may C100'..5e the 10/5/5 Cep ,0 mee! the maximt.;m tax threshold requirements. This
cap 1I',ey be chosen ror an~; or all of 1998, 1999 or 2000 taxation yeal;;;, as long 2.S the
municipality continues te msst the rIl2ximum threshold requirements.
Fer 1998, municipalities he'le until Jenuc.ry 31, 1999 to peSS a,by-law adopting ,he Cep.
(The December 31 legisletsd deadline was extended to Jenu2rf 31, 1998 by a.Reg
701/98.)
Fer 1999 and 2000, ml.1r.icipeiitiesrllust passaby-reiji bYM2rch- 3f-oftheyear'in which ----
thsy wish to heve the cap apply. The Minister of Fin2nce may est2biisn later de2dlines
by regulation.
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The Cep will be financed within e2cn property class across the Lipper-tier. Where
optional c!ass~s heve been used, the cap must be fin2nced across the broader property
classes. (A broader property class includes all option2J clesses derived from the
st2ndard class -- either the commercial or industrial cless.)
Beceuse some municipalities may have more properties facing either increases or
decreases than others, the cap may cause some municipalities to experience either
revenue shortfalls or surpluses. Where revenue shortfalls or surpluses occur in local
municipalities as a result of the cap, the upper-tier municipality will redistribute the
shortfalls/surpluses among the local municipalities to echieve revenue neutrality.
Frozen Assessment Listing
AI/lower and single tier ,-r,unicipalities must maint2in a frozsn assessment listing for all
commercial, industrial and multi-residentiel properties to ensure that the 10/5/5
threshold or cap requirements are being met
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1999, c:.c 2CCC,
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The ccs;s sf :;-,e ;~:z=:i cssessi71em lis'cing wiii be the June 1 S, 1998 re!e2.se cf the 1997
ph2.se-;n fiie. Tr,e Cm2.[jc ;::~cpe:t'j A,ssessment Ccr;:or2.ticn (OPACl. will prcvice 2.
copy of this fiie to ;:"iunic:;:c.:::es upcn requesT. '.
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The :'vlinis::r; of F:r:c:ice c.-:: :he Minis'c;,"/ of Mcr.icipsJ A.T7sirs andljousing sre
cccrdir.s:ing eifers :0 ass;s: :;1 the de\ieicpTiEm or frcz2n assessment listings.
Regicn2.! SSseSSi7',em cr,:ces have agreec to assist municipaiities in bringing this iiie up
-0 d--- C::" -\-, -- - - -- "'r-c- - . ;.,-c:: beth -n OI'C' <I OC7 - c::--s<::-~ '/alue -n'd'a n'e1N 1 cC8
L Cle -v LI 'C~ -::c.'_., 1-' 'v, c,.: ,'Cv II C ~v C_.:le _c.... C '~"" .,........
CV A. ., :~~";~:fE,;:-':2t:;:.~:'
..
Municips/ities wiii 2:S0 hS'ie :c update the listir,g to reflect changes that affect .'
assessments such as new :::nstruction, renovations and changes in vacancies that
occur during 1998, 1999 a;-:c: 2000.
.:=.... :.;.
Each locsl municipslity shceld provide their upper-tier with the listing to ensure that both
leve!s ae werking with the same dats. .
- -7---<'
Determining Taxes Under the Cap
- The 10/5/5 cap is calculatec cssed on the folluwing steps:
~ '
1) c2.1cu!ate 1997 taxes from the frozen assessment listing
2) calculate 19~8 CV A taxes extracting municipal levy changes and
education tax cut
3) compsre 1) to 2) to see whst properties are subject to a capping
1djustment and apply adjustment (i.e. increase 1997 taxes by cap, or
decrease 1997 taxes by percentage of reform-related decrease)
4) apply municipal levy change (if applicable) to 1997 adjusted taxes
calculated in 3)
5) apply business education tax cut to 1997 adjusted taxes calculated in 3)
1)
1997 Taxes
1997 taxes include beth realty and business occupancy taxes and are derived by
applying 1997 mill rates to actual 1997 assessments and business assessments.
1997 assessments, business assessments and mill rates are contained on the
frozen assessment listing.
-
4
2)
1 S98 CV A Ta~es E.~trac:jng Municipal Levy Chanse and EdLication Tax Cut
--
I,~ r(,-=r 7(~ ~~-::77':ir,e \vr,a: :rcce:::es are c2.ccec, ~ S97 ta;{es rie~': :': SS
._.___.._ -' I ' "
C~~:a~sc:: :: ~ ;S2 C'I;', taxes (e:<:rac::r,-:: ar.'/ filL:nic::::a! Ie-IV c:-:2.:::es a;::
- , . ,........ .. ""'
erL:c2.::cn :a~:: ::":11. Le'l'l c~ar.ces ar.c :;--,e ecucaticn tax c:..:i: ~t..:s::e res:'/ed
-- ,..-
;~~~ . cc~ C'-' \ .~v~s c::;nc~ ./i' e C~D r~""l'ir-e:: -hcc::- c;"'-ncc.-'c ;i""'l/ rn .,....-
II\..Jlill....""",,-,' '/.-\ lC~\= .....1 ~ ell C, ,:j"",,:,-, =_ II _C lie:. __.::: ~ 1~_," >..I L"-~.
3) Caf=ping Acjustment (allowable percentage tax inc~ease or c:ec~easa from
1 S97 taxes)
. I/I'te:s 1 SSe C,/,~ t2.xes (ex:rac:ing rTicnic:palle'l'j c:-:anges 2.nd e:uc2.!:cr. :ax
cui:) 2.rs filers ::--I2.r. the allowable C2.p (i.s. in 19S8, 10% highs: th2.i 19S7 taxes);
. :.-"'
thp'-~,... 'Ie:: --r-;;-d
__ \..."c,...... ..... C.:-:-ll= .
:.
For prcper.:es where i 998 CV A taxes (extr2.cting municip2.11evy c;;anges and
educ2.tion tax cut) are less than i 997 t2.xes, the tax increases frcm all properties
wher2 the C'I::'. taxes are greater than 1997 taxes wil! be used to prcvide them
wiTh 2. percent2.ge or their rerorm-related tax decreases.
4) Municipal Levy Change
. _ ~/ur.icip2.lle\/,/ changes flow on top or "1997 adjusted taxes~ unce:- the 10/5/5
Ci!'p. Every prcper:y in a cl2:ss (or within an optional class if there :s one) would
be sui:ject to the S2me percentage levy increase or decrease.
-
"1997 adjusted taxes" are 1997 taxes adjusted by capping, either
increased in any percentage up to the allowable cap or decreased by a
percer,t2.ge cf the reform-related decrease.
. The levy change is calculated for a capped class by compar.ng a 1998 t2.X rate,
set to raise the same amoCmt of revenue on the class that was raised in 1997, to
the 1998 actu2.1 rate. :
5) Education Tax Cut
· The education tax cut is distributed in a similar way to a municipa[ levy change --
the same percentage applies to everyone in the class on the basis or their "1997
adjusted taxes".
the difference is that the percentage cut is applied to the breader dass
and not at the optional class level (like the municipal levy change).
-
5
Calculatina Munic:=al Levv Chances
_ , 4 _
-
ML.:nic:cai ie'N c~c......:es are iscia:ec e'/:
, .. - ..
,......, ,....:~:~~j -I'~r 'e've.' ~r"c' I'r~~r (-h_ ~~~r -;~, ~~~""c~ :- 'h~ ~--~ ;cr
lill....iI.,.....,_C lC "'- J ,......1 Cl, ....~~-::::, \~jj,= _~:-:;, Uc;; '_dlc:.l._~:~ '.llt:: .....c:.:.le I
~,..,c" '~'\Ier-;~r '\In' I"I~ -he 'C\t,e-';~r -~-"'c~ t"-~ 'I-r'l'j ~......-...C """"nl'c;....-j'lt'j'eS)'
-- ......'f Ll.Ci,,~ Ie lji__ I .....: In:; 1.1'-="1_::: ""C;t c:.~ C.Jj.l",..,i~-' 111l.... I I:--"C
Ci2.SS ',en an c~licn2.j c:ass oc.sfs jf t~s/ exfsL), since oniy certain c:asses
~-~ ~~--~,.... (~-""""""e--;-I 'Inc"'c::'ri-j ~,..,..; ,.,...,,:..; --C:::"-~t'I'-I\
c.: ~ '.....c.:- :--t::..... l...,.........1 J ,III : I""IC, I ....._l.e::. c, ,'... j; l'-l..I....: -::;.....l~~..i_ .c.jo
I fie ie'/Y c~c.,-,ge is cacrLired by c8ri':caring ~ ::98 aC:L:ai tax rates (by cl2.ss) levied
in the munici:ality to ;'base'l tax rates (by class), whicii areca!c:..:iated to raise the
same am 0 c....., : of revenue that was raised Jr, 1 S97. .: ,., ","..'
The a::'JaJ rate3 a-nd the base rates include all taxes -- Iceal, upper tier
and e.:ucation. The education rates 2re the same in bcth rates.
· In determinir;; the a.mount of 1997 municipal revenues tryat,are used to set the
"base" munic:pal ra.tes, the effect of Local Serlices Realignment on residential
and multi-res:dential classes must be taken into account.
~~
-
The eC!Jcation tax. room is added ,to the 1 9971ccal and upper tier
revem:es generated from the residential and muiti-resicential classes." .
This ~ :ccess allows the "base" munic:::al rates to be cOrTipared to 1998
actual municipal rates.
,Education tax rcom was set cut in a March 31, 1998 LSR release given to
all mur.icipalities ("LSR - Community Reinvestment Fund - 1998
Allocat:on").
· A difference ber'IVeen the base rate and the actual 1 998 rate for a capped class
indicates a municipal levy change.
· Ontario Regulation xxx/99 sets out the formula to calculate the dollar amount of
,- the municip2.! levy change using the actual and base rates. That dollar amount is
.cf then distributed evenly across all properties in the class based on their "1997
'.. adjusted taxes" (same % increase or decrease for everyone).
-
6