HomeMy WebLinkAboutCS 18-08
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 18-08
Date: May 12, 2008
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From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2008 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 18-08 of the Director, Corporate Services & Treasurer be
received;
2. That the 2008 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 9, 2008 and September
26, 2008 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
2008 Current Budget of the City of Pickering and to levy taxes for School Boards and
for the Region of Durham.
Report CS 18-08
Date: May 12, 2008
Subject: 2008 Tax Rates and Final
Tax Due Dates for All Realty Tax Classes Except for
~1 2 2 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 2008 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 2008 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 21, 2008, City Council approved Report CS 14-08 of the Director, Corporate
Services & Treasurer that provided for a budgetary increase of 5.9% with a
corresponding property tax levy of $40,512,858. The budgetary levy increase is applied
to the "City portion" of the property tax bill.
Re-Assessment Update Cancelled By 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
2008 taxes will remain as January 1, 2005.
Report CS 18-08
Date: May 12, 2008
Subject: 2008 Tax Rates and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 3
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Tax Due Date Instalments
Recommendation 3 provides for the due dates for the payment of residential taxes
being July 9, 2008 and September 26, 2008. The table below lists the tax instalment
due dates for the last four years.
Year
2008
2007
2006
2005
1 S Instalment
Jul 9,2008
Jul 11/07
Jul 7/06
Jul 15/05
2" Instalment
Se tember 26/08
Se tember 27/07
Se tember 28/06
Se tember 29/05
During the last few years, taxation staff have noticed that there has been a substantial
request for tax bill reprints around the June 30th date due to the large number of homes
being sold at this time. Last year, taxation staff reprinted approximately 500 tax bills
between June 15 to July 15 mainly due to sales transactions. The cost of producing
and mailing of the reprinted tax bill is estimated to be ten dollars. Taxation staff will
continue to monitor this situation and may have to adjust the tax bill due date to mid
June for future years.
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
meeting. Staffs preliminary estimate for the final non-residential due date is October
15,2008.
ChanQes to the BillinQ 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.
Report CS 18-08
Date: May 12, 2008
Subject: 2008 Tax Rates and Final
Tax Due Dates for All Realty Tax Classes Except for
1 2 i~ Commercial, Industrial & Multi-Residential Realty Classes
Page 4
Attachments:
1. By-law to Establish the 2008 Tax Rates and Final Instalment Due Dates for All
Realty Classes Except Non-Residential
Prepared By:
Prepared By:
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.L Stan Karwowski
:1' Manager, Finance & Taxation
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-Tracy Pa~so s
Acting C~r inator, Taxation Services
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Approved I Endorsed By:
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Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Co il
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/\TTACHME!\H #.1._- TO REPORT # CS:ff ~.~
THE CORPORATION OF THE CITY OF PICKERING
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BY-LAW NO. XX/08
Being a By-law to adopt the estimates of all sums required to be
raised by taxation for the year 2008 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. 13-2008 to
establish tax ratios and By-law 12-2008 to adopt estimates of all sums required by The
Regional Municipality of Durham for the Durham Region Transit Commission and By-
law 11-2008 to set and levy rates of taxation for Regional Solid Waste Management
and By-law NO.1 0-2008 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 2008 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 2008; and,
WHEREAS an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 6821/07) 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 2008, The Corporation of the City of Pickering (the "City") on April
21, 2008, approved Council Report CS 14-08 and corresponding schedules and
attachments as presented including Council Resolution #78/08 resulting in a
taxation levy of $40,512,858.
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2. Fat the year 2008, 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 2008.
4. The Tax Levy due dates for the Final Billing be July 9, 2008 and September 26,
2008 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 20th day of May
2008.
David Ryan, Mayor
Debi Wilcox, Clerk
By-law No 108
Schedule A
2008 Tax Rates
2008 City Region Education Total Pickering Region Education TOTAL
CVA Tax Rate Tax Rate Tax Rate Tax Rate Billinq Billinq Billinq BILLING
ProlliillY Class
Residential 7,963,218,999 0.00379756 0.00771099 0.00264000 0.01414855 30,240,807 61,404,302 21,022,898 112,668,007
Farm 73,794,300 0.00075950 0.00154220 0.00066000 0.00296170 56,047 113,806 48,704 218,557
Managed Forest 2,315,700 0.00094940 0.00192776 0.00066000 0.00353716 2,199 4,464 1,528 8,191
Pipelines 22,187,000 0.00466870 0.00947988 0.01586577 0.03001435 103,584 210,330 352,014 665,928
Multi-Residential 62,507,470 0.00708810 0.01439256 0.00264000 0.02412066 443,059 899,643 165,020 1,507,721
Commercial 697,682,652 0.00550650 0.01118095 0.01487553 0.03156298 3,841,790 7,800,755 10,378,399 22,020,944
Commercial - Excess Land 10,853,171 0.00385450 0.00782665 0.01041287 002209402 41,834 84,944 113,013 239,790
Commercial Vacant Land 8,417,000 0.00385450 0.00782665 0.01041287 0.02209402 32,443 65,877 87,645 185,965
Shopping Centres 293,412,797 0.00550650 0.01118095 0.01487553 0.03156298 1,615,678 3,280,634 4,364,671 9,260,982
Shopping Centres Excess Land 0.00385450 0.00782665 0.01041287 0.02209402 0 0 0 0
Office Building 40,829,275 0.00550650 0.01118095 0.01487553 0.03156298 224,826 456,510 607,357 1,288,694
Office Building Excess Land 0.00385450 0.00782665 0.01041287 0.02209402
Industrial 158,111,670 0.00858170 0.01742531 0.01961500 0.04562201 1,356,867 2,755,145 3,101,360 7,213,372
Industrial Excess Land 3,122,685 0.00557810 0.01132668 0.01274975 0.02965453 17,419 35,370 39,813 92,602
Industrial Vacant Land 27,155,000 0.00557810 0.01132668 0.01274975 0.02965453 151,473 307,576 346,219 805,269
Large Industrial 23,963,240 0.00858170 0.01742531 0.01961500 0.04562201 205,645 417,567 470,039 1,093,251
Large Industrial - Excess Land 1 ,291 ,760 0.00557810 0.01132668 0.01274975 0.02965453 7,206 14,631 16,470 38,307
Parking Lot Full 0.00000000 0.00000000 0.00000000 000000000
Parking Lots Excess Land 0.00000000 0.00000000 0.00000000 0.00000000
Total 9,388,862,719 38,340,876 77,851,553 41,115,151 157,307,580
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2008 City Region Education Total Pickering Region Education TOTAL
CVA Tax Rate Tax Rate Tax Rate Tax Rate Billinq Billinq Billinq BILLING
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Payments in Lieu Properties ~)
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Residential 99,371,895 0.00379756 0.00771099 0.00264000 0.01414855 377,371 766,256 262,342 1,405,968 .,~""""
Residential - Tax Tenant 55,478,370 0.00379756 0.00771099 000264000 0.01414855 210,682 427,793 146,463 784.938
Residential - General 43,028,285 0.00379756 0.00771099 000000000 0.01150855 163,402 331,791 495,193
Residential - Full Shared PIL 103,500 0.00379756 0.00771099 0.00264000 001414855 393 798 273 1,464
Farm 55,538,600 0.00075950 0.00154220 0.00066000 0.00296170 42,182 85,652 36,655 164,489
Farm - Tax Tenant 15,754,400 0.00075950 0.00154220 0.00066000 000296170 11,965 24,296 10,398 46,660
Commercial Full 47,885,170 0.00550650 0.01118095 0.01487553 0.03156298 263,680 535,402 712,317 1,511,399
Commercial Full - Shared PIL 30,572,705 0.00550650 001118095 0.01487553 0.03156298 168,349 341,832 454,785 964,966
Commercial Full - Tax. Tenant 2,522,350 0.00550650 0.01118095 0.01487553 0.03156298 13,889 28,202 37,521 79,613
Commercial General 8,483,550 0.00550650 0.01118095 0.00000000 0.01668745 46,715 94,854 141,569
Commercial Full - Excess Land 515,270 0.00385450 0.00782665 0.01041287 002209402 1,986 4,033 5,365 11,384
Commercial Full - Excess Land Tenant 0.00385450 0.00782665 0,01041287 0.02209402
Commercial General Excess Land 1,419,550 0.00385450 000782665 0.00000000 0.01168115 5,472 11,110 16,582
Commercial Gen - Vacant Land 2,550,000 0.00385450 0.00782665 0.00000000 001168115 9,829 19,958 29,787
Commercial Vacant Land Full 106,000 0.00385450 0.00782665 0.01041287 002209402 409 830 1,104 2,342
Office Building Full - Shared PIL 21,560,300 0.00550650 0.01118095 0.01487553 0.03156298 118,722 241,065 320,721 680,507
Parking Lot 0.00550650 0.01118095 0.00000000 0.01668745
Industrial Full 0.00858170 0.01742531 0.01968878 0.04569579
Industrial General 0.00858170 0.01742531 0,00000000 0.02600701
Industrial Full- Shared PIL 7,512,005 0.00858170 0.01742531 0.01968878 0.04569579 64,466 130,899 147,902 343,267
Industrial Full- Tax Tenant 372,380 0.00858170 0.01742531 0.01968878 0,04569579 3,196 6,489 7,332 17,016
Ind. Excess Land - Shared PIL 7,626,805 0.00557810 0.01132668 0.01279771 0.02970249 42,543 86,386 97,606 226,535
Ind. Excess Land Tax Tenant PIL 329,620 0.00557810 0.01132668 0.01279771 0.02970249 1,839 3,734 4,218 9,791
Industrial Excess Land Gen 0.00557810 0.01132668 0.00000000 0.01690478
Industrial Vacant Land Full 0.00557810 0.01132668 0.01279771 0.02970249
Industrial Vacant Land Gen 0.00557810 0.01132668 0.00000000 0.01690478
Industrial Vacant Land Shared PIL 1,932,000 0.00557810 0.01132668 0.01279771 0.02970249 10,777 21,883 24,725 57,385
Large Industrial Full - Shared PIL 70,897,800 0.00858170 0.01742531 0.01968878 004569579 608,424 1,235,416 1,395,891 3,239,731
Large Ind. Excess Land - Shared PIL 1,028,885 0.00557810 0.01132668 0.01279771 0.02970249 5,739 11,654 13,167 30,560
Total PILS 474,589,440 2,172,028 4,410,332 3,678,787 10,261,147
Grand Total 40,512,904 82,261,885 44,793,938 167,568,727