Item - 2011.EX3.5

Tracking Status

  • City Council adopted this item on February 23, 2011 with amendments.
  • This item was considered by the Executive Committee on February 17, 2011 and adopted without amendment. It will be considered by City Council on February 23, 2011.
  • See also By-law 334-2011

EX3.5 - 2011 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

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.

 

Column I

Column II

Column III

Property Class

2011 Recommended Tax Ratios(before Graduated Tax Rates)

2011 Ending Ratios

(after Graduated Tax Rates)

Residential

1.000000

1.000000

Multi-Residential

3.316402

3.316402

New Multi-Residential

1.000000

1.000000

Commercial General - Unbanded

3.236503

3.236503

Residual Commercial – Lowest Band

3.134000

3.020001

Residual Commercial – Highest Band

3.134000

3.236503

Industrial

3.236503

3.236503

Pipeline

1.923564

1.923564

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

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.

 

Column I

Column II

Column III

Column IV

Property Class

Bands

Portion of Assessment

Ratio of Tax Rate to Each Other

Residual Commercial

Lowest Band

Less than or equal to $1,000,000

0.9331063

Residual Commercial

Highest Band

Greater than $1,000,000

1.0000000

 

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.

 

Column I

Column II

Column III

Property Class

2011 Tax Rate for General Local Municipal Levy Before Graduated Tax rates

2011 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

Residential

0.5619218%

0.5619218%

Multi-Residential

1.8635584%

1.8635584%

New Multi-Residential

0.5619218%

0.5619218%

Commercial General - Unbanded

1.8186615%

1.8186615%

Residual Commercial - Lowest Band

1.7610629%

1.6970046%

Residual Commercial - Highest Band

1.7610629%

1.8186615%

Industrial

1.8186615%

1.8186615%

Pipelines

1.0808925%

1.0808925%

Farmlands

0.1404805%

0.1404805%

Managed Forests

0.1404805%

0.1404805%

 

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.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0070745%

Residual Commercial

Lowest Band

0.0066012%

Residual Commercial

Highest Band

0.0070745%

 

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.

Background Information (Committee)

Letter from the Budget Committee - 2011 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-35838.pdf
Presentation - City of Toronto 2011 Recommended Capital and Operating Budgets
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-36031.pdf

Motions (City Council)

1 - Motion to Amend Item moved by Councillor Gord Perks (Lost)

That City Council adopt tax rates which will raise a local municipal general tax levy of $3,582,946,839 which represents a budgetary tax levy of 0.155% on residential properties and 0.052% on non residential.

Vote (Amend Item) Feb-23-2011 12:16 PM

Result: Lost Majority Required - EX3.5 - Perks - Motion 1
Total members that voted Yes: 18 Members that voted Yes are Maria Augimeri, Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 27 Members that voted No are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson
Total members that were Absent: 0 Members that were absent are

2 - Motion to Amend Item (Additional) moved by Councillor Karen Stintz (Carried)

That 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.

Vote (Amend Item (Additional)) Feb-23-2011 12:17 PM

Result: Carried Majority Required - EX3.5 - Stintz - Motion 2
Total members that voted Yes: 42 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Doug Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 3 Members that voted No are Mike Del Grande, Rob Ford, Norman Kelly
Total members that were Absent: 0 Members that were absent are

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Feb-23-2011 12:18 PM

Result: Carried Majority Required - EX3.5 - Adopt the item as amended
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson
Total members that voted No: 9 Members that voted No are Maria Augimeri, Janet Davis, Mary Fragedakis, Mike Layton, Pam McConnell, Joe Mihevc, Gord Perks, Adam Vaughan, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

Motion to Extend Speaking Time (Carried)

Speaker Nunziata proposed that Councillor Cho's speaking time be extended so that he could complete his remarks.

Vote (Extend Speaking Time) Feb-23-2011 11:46 AM

Result: Carried Majority Required - EX3.5 - extend Councillor Cho's speaking time
Total members that voted Yes: 37 Members that voted Yes are Paul Ainslie, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Peter Milczyn, Frances Nunziata (Chair), Cesar Palacio, John Parker, Gord Perks, Anthony Perruzza, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 4 Members that voted No are Maria Augimeri, Mike Del Grande, Denzil Minnan-Wong, Ron Moeser
Total members that were Absent: 4 Members that were absent are John Filion, Joe Mihevc, James Pasternak, Jaye Robinson

Motion to Extend Speaking Time (Carried)

Speaker Nunziata proposed that Councillor Thompson's speaking time be extended so that he could complete his remarks.

 

Vote (Extend Speaking Time) Feb-23-2011 12:09 PM

Result: Carried Majority Required - EX3.5 - Extend Councillor Thompson speaking
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Ana Bail„o, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Maria Augimeri, Mark Grimes
Total members that were Absent: 7 Members that were absent are Michelle Berardinetti, Shelley Carroll, Mike Del Grande, John Filion, Pam McConnell, Joe Mihevc, David Shiner

EX3.5 - 2011 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

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.

 

Column I

Column II

Column III

Property Class

2011 Recommended Tax Ratios(before Graduated Tax Rates)

2011 Ending Ratios

(after Graduated Tax Rates)

Residential

1.000000

1.000000

Multi-Residential

3.316402

3.316402

New Multi-Residential

1.000000

1.000000

Commercial General - Unbanded

3.236503

3.236503

Residual Commercial – Lowest Band

3.134000

3.020001

Residual Commercial – Highest Band

3.134000

3.236503

Industrial

3.236503

3.236503

Pipeline

1.923564

1.923564

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

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.

 

 

 

Column I

Column II

Column III

Column IV

Property Class

Bands

Portion of Assessment

Ratio of Tax Rate to Each Other

Residual Commercial

Lowest Band

Less than or equal to $1,000,000

0.9331063

Residual Commercial

Highest Band

Greater than $1,000,000

1.0000000

 

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.

 

Column I

Column II

Column III

Property Class

2011 Tax Rate for General Local Municipal Levy Before Graduated Tax rates

2011 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

Residential

0.5619218%

0.5619218%

Multi-Residential

1.8635584%

1.8635584%

New Multi-Residential

0.5619218%

0.5619218%

Commercial General - Unbanded

1.8186615%

1.8186615%

Residual Commercial - Lowest Band

1.7610629%

1.6970046%

Residual Commercial - Highest Band

1.7610629%

1.8186615%

Industrial

1.8186615%

1.8186615%

Pipelines

1.0808925%

1.0808925%

Farmlands

0.1404805%

0.1404805%

Managed Forests

0.1404805%

0.1404805%

 

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.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0070745%

Residual Commercial

Lowest Band

0.0066012%

Residual Commercial

Highest Band

0.0070745%

 

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 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.

Origin

(January 25, 2011) Letter from the Budget Committee

Summary

The Budget Committee on January 24 and 25, 2011, considered the report (January 19, 2011) from the Deputy City Manager and Chief Financial Officer, entitled "2011 Property Tax Rates and Related Matters".

 

Background Information

Letter from the Budget Committee - 2011 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-35838.pdf
Presentation - City of Toronto 2011 Recommended Capital and Operating Budgets
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-36031.pdf

Speakers

Councillor Shelley Carroll, Ward 33 - Don Valley East
Councillor Janet Davis, Ward 31 - Beaches-East York

Motions

Motion to Adopt Item moved by Councillor Mike Del Grande (Carried)

That Council adopt the recommendations of the Budget Committee.

Source: Toronto City Clerk at www.toronto.ca/council