Item - 2015.EX3.5

City Council on March 10 and 11, 2015, adopted the following:

1.         City Council adopt the 2015 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 Part 2 and the 2015 levy increase of 2.75% (inclusive of the Scarborough Subway Extension) on the residential, new multi-residential, farmland, managed forest and pipeline property classes and approximately 0.92% (inclusive of the Scarborough Subway Extension) on the commercial, industrial, multi-residential property classes, will result in the 2015 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 2015 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.          a.       City Council adopt the tax rates set out below in Column IV, which rates will raise a local municipal general tax levy for 2015 of $3,860,841,943, inclusive of a 2.25% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and a 0.75% commercial, industrial, and multi-residential tax rate increase; and

b.         City Council adopt the additional tax rates set out below in Column V, which rates will raise an additional local municipal general tax levy of $12,639,726 for the purposes of funding the City’s share of the cost of construction of the Scarborough Corridor Subway, in accordance with Council's direction through Clause CC39.5 adopted by City Council on October 8, 2013.

4.         City Council determine that the 2015 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $6,371,288 to fund the mandatory 2015 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 2015 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 $6,279,085 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2015; and

b.         An additional tax rate of 0.0011781% be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $92,203 to fund the total estimated rebates to registered charities for properties in the industrial class in 2015.

5.         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 2015 taxation year; and

b.         City Council adopt the continued removal of properties from the capping and clawback system once they have reached their full Current Value Assessment (CVA)-level of taxation for the 2015 tax year.

6.         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 2015 and future years.

7.         City Council determine that:

a.         the instalment dates for the 2015 final tax bills be set as follows:

i.          the regular instalment dates be July 2, August 4, and September 1 of 2015;

ii.         for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 17, September 15, October 15, November 16 and December 15 of 2015; and

iii.         for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2015; and

b.         the collection of taxes for 2015, other than those levied under By-law No. 2-2015 (the interim levy by-law) be authorized.

8.           City Council amend the City's tax increase cancellation program so that the program will automatically adjust according to the City of Toronto's rate of inflation and City Council direct that this be reflected in the baseline budget for future years. 

9.         City Council direct the Deputy City Manager and Chief Financial Officer to report to Executive Committee at its meeting scheduled for April 22, 2015, on the 2015 tax rates for school purposes, and the 2015 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 2015 ‘clawback’ rates).

10.       City Council request the Treasurer, in consultation with the Executive Director, Social Development, Finance and Administration, to review the property tax increase, deferral and cancellation programs to determine the most appropriate income levels for eligibility and whether or not the eligibility levels should be indexed and report on the results of their review as part of the Poverty Reduction Strategy.

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.