Item - 2013.EX27.3

City Council on January 15 and 16, 2013 adopted the following:

1.         City Council adopt the 2013 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 and the 2013 budgetary levy increase of 2.0% on the residential, new multi-residential, farmland, managed forest and pipeline property classes and 0.667% on the commercial, industrial, multi-residential property classes, will result in the 2013 ending tax ratios shown in Column III.

2.         City Council continue the previous adoption of  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 2013 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 V, which rates will raise a local municipal general tax levy for 2013 of $3,712,887,426.

4.         City Council determine that the 2013 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of  $5,814,519 to fund the mandatory 2013 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 2013 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 $5,683,066 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2013.

b.         An additional tax rate of 0.0017158% be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $131,453 to fund the total estimated rebates to registered charities for properties in the industrial class in 2013.

5.         City Council determine that for the purposes of the City’s Tax Increase Cancellation Program, the household assessed value criteria for eligibility be increased to be equal to or less than $650,000 (from $575,000) for the 2013 and 2014 tax years, and to be equal to or less than $715,000 for the 2015 and 2016 tax years.

6.         City Council amend the eligibility criteria for the City's Tax Increase Cancellation Program to reflect a household income of $38,000.00 or less.

7.         City Council determine that for the purposes of the Capping and Clawback of taxes in the commercial, industrial and multi-residential property classes:

a.         City Council adopt the continued limiting of reassessment-related tax increases for the commercial, industrial, and multi-residential property classes at a cap of 5% of the preceding year’s current value assessment taxes for the 2013 taxation year.

b.         City Council adopt the continued removal of properties from the capping and clawback system once they have reached their full CVA-level of taxation for the 2013 tax year.

8.         City Council direct the Deputy City Manager and Chief Financial Officer to report directly to Council at its meeting scheduled for April 3 and 4, 2013, on the 2013 tax rates for school purposes, and the 2013 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 2013 ‘clawback’ rates).

9.         City Council determine that for the purposes of the comparable property tax treatment for new construction in the commercial, industrial and multi-residential classes the minimum property taxes for new construction be set at 100% of the full uncapped CVA level of taxes for 2013 and future years.

10.       City Council determine that:

a.         the instalment dates for the 2013 final tax bills be set as follows:

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

ii.            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.

iii.        For taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2013;

b.         The collection of taxes for 2013, other than those levied under By-law No. 1633-2012 (the interim levy by-law) be authorized; and

c.         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.

11.       City Council authorize the appropriate officials to take the necessary action to give effect to Council's decision and authorize the introduction of the necessary bills in Council.