Item - 2017.EX24.11
Tracking Status
- City Council adopted this item on April 26, 2017 with amendments.
- This item was considered by the Executive Committee on April 19, 2017 and adopted without amendment. It will be considered by City Council on April 26, 2017.
- See also By-law 450-2017
EX24.11 - 2017 Education Property Tax Levy and Clawback Rate By-Law
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on April 26, 27 and 28, 2017, adopted the following:
1. City Council amend By-law 120-2017 for the 2017 taxation year to:
a. limit tax increases for the commercial, industrial, and multi-residential property classes, such capping limit to be based on 10 percent of the preceding year’s current value taxes, in accordance with Ontario Regulation 121/07;
b. adopt a threshold that if a property in the commercial, industrial or multi-residential class is within $500 of its Current Value Assessment level of taxes it moves directly to Current Value Assessment taxation, in accordance with Ontario Regulation 121/07; and
c. adopt the continued removal of properties from the capping and clawback system once they have reached their full Current Value Assessment-level of taxation for the 2017 tax year, in accordance with Ontario Regulation 121/07.
2. City Council adopt the 2017 tax rates for school purposes, as shown in column II, which will raise an education tax levy on rateable properties for 2017 of $2,132,247,418, subject to the Minister of Finance filing a Regulation prescribing such rates for the City of Toronto:
|
Column I |
Column II |
|
Property Class |
2017 Tax Rates for Education Levy |
|
Residential |
0.179000% |
|
Multi-Residential |
0.179000% |
|
New Multi-Residential |
0.179000% |
|
Commercial |
1.140000% |
|
Commercial (New Construction) |
1.140000% |
|
Residual Commercial (New Construction) |
1.140000% |
|
Industrial |
1.216415% |
|
Industrial (New Construction) |
1.140000% |
|
Pipelines |
1.390000% |
|
Farmlands |
0.044750% |
|
Managed Forests |
0.044750% |
3. City Council adopt reductions in tax decreases for the 2017 taxation year on properties in the commercial, industrial and multi-residential property classes by the percentage of the tax decrease set out in Column II in order to recover the revenues foregone as a result of capping:
|
Column I |
Column II |
Column III |
|
(Property Class) |
(Clawback Percentage) |
(Allowable Decrease) |
|
Commercial |
67.287231% |
32.712769% |
|
Industrial |
39.780545% |
60.219455% |
|
Multi-residential |
18.327323% |
81.672677% |
4. City Council authorize the introduction of the necessary bills in Council to give effect to Council's decision.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-102553.pdf
Background Information (City Council)
https://www.toronto.ca/legdocs/mmis/2017/cc/bgrd/backgroundfile-103210.pdf
Motions (City Council)
That City Council adopt the following recommendations contained in the supplementary report (April 25, 2017) from the Deputy City Manager and Chief Financial Officer [EX24.11a]:
1. City Council adopt the 2017 tax rates for school purposes, as shown in column II, which will raise an education tax levy on rateable properties for 2017 of $2,132,247,418, subject to the Minister of Finance filing a Regulation prescribing such rates for the City of Toronto:
|
Column I |
Column II |
|
Property Class |
2017 Tax Rates for Education Levy |
|
Residential |
0.179000% |
|
Multi-Residential |
0.179000% |
|
New Multi-Residential |
0.179000% |
|
Commercial |
1.140000% |
|
Commercial (New Construction) |
1.140000% |
|
Residual Commercial (New Construction) |
1.140000% |
|
Industrial |
1.216415% |
|
Industrial (New Construction) |
1.140000% |
|
Pipelines |
1.390000% |
|
Farmlands |
0.044750% |
|
Managed Forests |
0.044750% |
2. City Council adopt reductions in tax decreases for the 2017 taxation year on properties in the commercial, industrial and multi-residential property classes by the percentage of the tax decrease set out in Column II in order to recover the revenues foregone as a result of capping:
|
Column I |
Column II |
Column III |
|
(Property Class) |
(Clawback Percentage) |
(Allowable Decrease) |
|
Commercial |
67.287231% |
32.712769% |
|
Industrial |
39.780545% |
60.219455% |
|
Multi-residential |
18.327323% |
81.672677% |
3. Authority be granted for the introduction of the necessary bills in Council to give effect hereto.
EX24.11 - 2017 Education Property Tax Levy and Clawback Rate By-Law
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council amend By-law No. 120-2017 for the 2017 taxation year to:
a. limit tax increases for the commercial, industrial, and multi-residential property classes, such a capping limit to be based on 10 percent of the preceding year’s current value taxes, in accordance with O.Reg. 121/07;
b. adopt a threshold that if a property in the commercial, industrial or multi-residential class is within $500 of its Current Value Assessment level of taxes it moves directly to Current Value Assessment taxation, in accordance with O.Reg. 121/07;
c. adopt the continued removal of properties from the capping and clawback system once they have reached their full Current Value Assessment-level of taxation for the 2017 tax year, in accordance with O.Reg. 121/07.
Decision Advice and Other Information
The Executive Committee:
1. Directed the Deputy City Manager and Chief Financial Officer to report directly to City Council at its April 26, 27 and 28, 2017 meeting on the 2017 education tax rates, education property tax levy and clawback rates.
Origin
Summary
This report recommends revisions to the existing policy on capping Current Value Assessment tax increases on properties in the commercial, industrial and multi-residential property classes, as provided for by legislation.
The Province has just today advised the City of the 2017 education tax rates for Toronto, however, the necessary regulation prescribing these rates has yet to be filed. The education tax rates together with the municipal tax rates are both required to determine capping and clawback rates.
Staff will report directly to Council at its meeting scheduled for April 26-28, 2017 on the 2017 education tax rates and clawback rates.
Background Information
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-102553.pdf