Item - 2011.EX3.5

City Council on February 23 and 24, 2011, adopted the following:

1.         City Council adopt the 2011 tax ratios shown in Column II for each of the property classes set out below in Column I, which together with the graduated tax rate for the Residual Commercial Class as recommended in Recommendation 2, will result in the 2011 ending tax ratios shown in Column III.

2.          City Council enact a by-law to continue with two bands of assessment of property in the Residual Commercial property class, for the purposes of facilitating graduated tax rates for the Residual Commercial property class in 2011 as set out in the Enhancing Toronto's Business Climate initiative, and setting such bands of assessment for each band shown in Column II at the amount shown in Column III, and setting the ratio of the tax rates for each band in relation to each other at the ratio shown in Column IV.

3.          City Council adopt the tax rates set out below in Column III, which rates will raise a local municipal general tax levy for 2011 of $3,579,446.839.

4.          The 2011 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of  $5,161,591 to fund the mandatory 2011 property tax rebates to registered charities in the commercial and industrial property classes, which provision is to be funded, for a net impact on the 2011 operating budget of zero, by the following:

a.                    The additional tax rates set out below in Column III be levied as part of the general local municipal levy on the commercial classes set out in Column I and Column II to raise a further additional local municipal tax levy of $5,042,524 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2011.

b.         An additional tax rate of 0.0016826% be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $119,067 to fund the total estimated rebates to registered charities for properties in the industrial class in 2011.

5.         With respect to the Capping and Clawback of taxes in the commercial, industrial and multi-residential property classes:

a.         City Council enact the necessary by-law to continue to limit reassessment-related tax increases for the commercial, industrial, and multi-residential property classes, such a cap limit to be based on 5% of the preceding year’s current value assessment taxes, for the 2011 taxation year.

b.         City Council enact a by-law to continue to provide for the removal of properties from the capping and clawback system once they have reached their full CVA-level of taxation for the 2011 tax year.

6.         The Deputy City Manager and Chief Financial Officer be directed to report directly to Council at its meeting scheduled for April 12 and 13, 2011, on the 2011 tax rates for school purposes, and the 2011 percentage of the tax decreases required to recover the revenues foregone as a result of the cap limit on properties in the commercial, industrial and multi-residential property classes (the 2011 ‘clawback’ rates).

7.         City Council again enact a by-law to maintain the phase-out of the comparable property tax treatment for new construction in the commercial, industrial and multi-residential classes by maintaining the minimum property taxes for new construction at 100% of the full uncapped CVA level of taxes for 2011 and future years.

8.         As in past years, the instalment dates for the 2011 final tax bills be set as follows:

a.         The regular instalment dates be the first business days of July, August and September.

b.         For taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be the 15th, or first business day thereafter, of each of the months of July to December.

c.          For taxpayers who are enrolled in the two installment program, the final instalment date be July 4, 2011.

9.         a.         The collection of taxes for 2011, other than those levied under By-law No. 2-2011 (the interim levy by-law) be authorized; and

            b.         A penalty charge for non-payment of taxes of 1.25 percent of taxes due and unpaid be added on the first day of default, and interest be charged at a rate of 1.25 percent per month on all outstanding taxes accruing from the first day of default.

10.       The Deputy City Manager and Chief Financial Officer be requested to submit a report to the next meeting of the Budget Committee on the impact of increasing the household income threshold for the senior tax cancellation program from the current $36,000 to $45,000 for a single family home if the home is owned by one or more senior people.

11.       The appropriate officials be authorized to take the necessary action to give effect thereto and authority be granted for the introduction of the necessary bills in Council.