Item - 2017.EX22.1

The Executive Committee recommends that:

1.  In calculating the tax ratios, City Council elect the following:

a.  for the purposes of establishing notional tax rates, to exclude the assessment of a property in a property class from the calculation of the total assessment of the properties in that property class if the current value of the property has increased by 100 percent or decreased by 25 percent, in accordance with subsection 2.2(4) of Ontario Regulation 121/07 ("O.Reg. 121/07"); and

b.  subject to receiving the necessary regulation, for the purpose of determining the tax revenue that is used to establish the allowable maximum 2017 revenue limit, to adjust the total assessment for property in a property class so that the assessment does not include changes to the tax roll resulting from eligible assessment-related losses (largely from appeals) from prior years, and advise the Ministry of Finance of this election.

2.  City Council adopt the 2017 tax ratios shown in Column II for each of the property classes set out below in Column I: 

3.  Subject to receiving the necessary amendment to O.Reg. 121/07 for the 2017 taxation year, City Council elect to raise the tax rates on the restricted property classes, as follows:

       iii.  on the Multi-Residential Property Classes, no tax rate increase.

4.  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 2017 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.

5.  

a. City Council adopt the tax rates set out below in Column V, which rates will raise a local municipal general tax levy for 2017 of $4,087,125,122 inclusive of a 2.0 percent residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, a 1.0 percent commercial tax rate increase, and a 0.67 percent industrial tax rate increase;    

b.  City Council adopt the additional tax rates set out below in Column VI, which rates will raise an additional special general tax levy of $14,045,625 dedicated for priority transit and housing capital projects (the "City's Building Fund levy"), in accordance with Recommendation 6 in EX22.2.

6.  City Council determine that the 2017 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $5,918,116 to fund the mandatory 2017 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 2017 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 $5,830,697 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2017; and

b.  an additional tax rate of 0.0011028 percent be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $87,419 to fund the total estimated rebates to registered charities for properties in the industrial class in 2017.

7.  City Council determine that for the purposes of the City's Tax Cancellation for Low-Income Persons Program the assessed value criteria for property eligibility be increased to be equal to or less than $850,000 for the 2017 and 2018 tax years, and $975,000 for the 2019 and 2020 tax years.

8.  City Council direct the Deputy City Manager and Chief Financial Officer to report to Executive Committee at its meeting scheduled for April 19, 2017, or directly to Council or a special meeting of Council if necessary, on the 2017 tax rates for school purposes, the 2017 capping policies, and the 2017 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 2017 'clawback' rates).

9.  Council determine that:

a.  the instalment dates for the 2017 final tax bills be set as follows:

i.  the regular instalment dates be July 4, August 1, and September 1 of 2017;

ii.  for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 17, August 15, September 15, October 16, November 15 and December 15 of 2017;

iii.  for taxpayers who are enrolled in the two installment program, the final instalment date be July 4, 2017; and

b.  the collection of taxes for 2017, other than those levied under By-law No. 1242-2016 (the interim levy by-law) be authorized.

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

To recommend the 2017 municipal tax ratios and tax rates arising from the concurrent adoption of the City of Toronto's 2017 tax supported Operating Budget and Capital Budget.

The 2017 tax rate increases arising from the 2017 tax supported Operating and Capital Budgets recommended by the Budget Committee and the tax policy decisions recommended by the Budget Committee are as follows:

2017 Recommended Property Tax Rate Increases