Item - 2013.EX27.3

Tracking Status

  • City Council adopted this item on January 15, 2013 with amendments.
  • This item was considered by the Executive Committee on January 10, 2013 and adopted without amendment. It will be considered by City Council on January 15, 2013.
  • See also By-laws 2-2013, 3-2013

EX27.3 - 2013 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

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.

 

Column I

Column II

Column III

Property Class

2013 Recommended Tax Ratios(before Graduated Tax Rates)

2013 Ending Ratios

(after Graduated Tax Rates and Budgetary Levy Increase)

Residential

1.000000

1.000000

Multi-Residential

3.223500

3.181363

New Multi-Residential

1.000000

1.000000

Commercial General - Unbanded

3.159772

3.118468

Residual Commercial – Lowest Band

2.997000

2.757980

Residual Commercial – Highest Band

2.997000

3.118468

Industrial

3.159772

3.118468

Pipeline

1.923564

1.923564

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

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.

 

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

 

0.88440225

Residual Commercial

Highest Band

Greater than $1,000,000

1.00000000

 

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.

 

Column I

Column II

Column III

Column IV

Column V

Property Class

2013 Tax Rate for Base General Local Municipal Levy Before Graduated Tax rates

2013 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2013 Additional Tax Rate to Fund Budgetary Levy Increase

2013 Ending Municipal Tax Rate (excluding Charity rebates)

Residential

0.5232993%

0.5232993%

0.0104660%

0.5337653%

Multi-Residential

1.6868554%

1.6868554%

0.0112457%

1.6981011%

New Multi-Residential

0.5232993%

0.5232993%

0.0104660%

0.5337653%

Commercial

1.6535066%

1.6535066%

0.0110234%

1.6645300%

 

Column I

Column II

Column III

Column IV

Column V

Property Class

2013 Tax Rate for Base General Local Municipal Levy Before Graduated Tax rates

2013 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2013 Additional Tax Rate to Fund Budgetary Levy Increase

2013 Ending Municipal Tax Rate (excluding Charity rebates)

Residual Commercial –

Band 1

1.5683281%

1.4623650%

0.0097491%

1.4721141%

Residual Commercial –

Band 2

1.5683281%

1.6535066%

0.0110234%

1.6645300%

Industrial

1.6535066%

1.6535066%

0.0110234%

1.6645300%

Pipelines

1.0065996%

1.0065996%

0.0201320%

1.0267316%

Farmlands

0.1308248%

0.1308248%

0.0026165%

0.1334413%

Managed Forests

0.1308248%

0.1308248%

0.0026165%

0.1334413%

 

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.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0071112%

Residual Commercial

Lowest Band

0.0062891%

Residual Commercial

Highest Band

0.0071112%

 

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.

Background Information (Committee)

(January 8, 2013) Letter from the Budget Committee forwarding its decision from its meeting of January 8, 2013
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-55160.htm
(January 4, 2013) Report from the Acting Deputy Manger and Chief Financial Officer on the 2013 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-55076.pdf

Motions (City Council)

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

That City Council amend the Executive Committee Recommendations by deleting the recommended 2013 property tax increases and adopting instead the following tax increases:

 

             3.1% for residential

 

             1.033% for all other classes

 

            and the tables in the Item be amended accordingly.

Vote (Amend Item) Jan-15-2013 11:53 AM

Result: Lost Majority Required - EX27.3 - Perks - motion 1
Total members that voted Yes: 8 Members that voted Yes are Janet Davis, Glenn De Baeremaeker, Sarah Doucette, Mike Layton, Pam McConnell, Gord Perks, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 35 Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, John Filion, Doug Ford, Rob Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson
Total members that were Absent: 2 Members that were absent are Paula Fletcher, Karen Stintz

2 - Motion to Amend Item moved by Councillor Janet Davis (Lost)

That City Council amend the Executive Committee Recommendations by deleting the recommended 2013 property tax increases and adopting instead the following tax increases:

 

            2.25% for residential

 

            0.75% for all other classes

 

and the tables in the Item be amended accordingly.

Vote (Amend Item) Jan-15-2013 11:54 AM

Result: Lost Majority Required - EX27.3 - Davis - motion 2
Total members that voted Yes: 15 Members that voted Yes are Shelley Carroll, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Josh Matlow, Pam McConnell, Joe Mihevc, John Parker, Gord Perks, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 29 Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Raymond Cho, 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, Mary-Margaret McMahon, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson
Total members that were Absent: 1 Members that were absent are Karen Stintz

3 - Motion to Amend Item moved by Councillor Giorgio Mammoliti (Lost)

That City Council amend the Executive Committee Recommendations by deleting the recommended 2013 property tax increases and adopting instead the following tax increases:

 

             0% for all classes

 

            and the tables in the Item be amended accordingly.

Vote (Amend Item) Jan-15-2013 11:55 AM

Result: Lost Majority Required - EX27.3 - Mammoliti - motion 3
Total members that voted Yes: 4 Members that voted Yes are Glenn De Baeremaeker, Rob Ford, Giorgio Mammoliti, Frances Nunziata (Chair)
Total members that voted No: 40 Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Doug Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are Karen Stintz

4 - Motion to Amend Item moved by Councillor Maria Augimeri (Carried)

That City Council amend the eligiblity criteria for the City's tax increase cancellation program to reflect a household income of $38,000.00 or less.

Vote (Amend Item) Jan-15-2013 11:56 AM

Result: Carried Majority Required - EX27.3 - Augimeri - motion 4
Total members that voted Yes: 28 Members that voted Yes are Maria Augimeri, Ana Bail„o, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 16 Members that voted No are Paul Ainslie, Michelle Berardinetti, Mike Del Grande, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Jaye Robinson, David Shiner, Michael Thompson
Total members that were Absent: 1 Members that were absent are Karen Stintz

5 - Motion to Amend Item moved by Councillor Anthony Perruzza (Redundant)

 That City Council amend the eligiblity criteria for the City's tax increase cancellation program to reflect a household income of $40,000.00 or less.

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled motion 5 by Councillor Perruzza redundant due to Council's adoption of motion 4 by Councillor Augimeri.


Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Jan-15-2013 11:57 AM

Result: Carried Majority Required - EX27.3 - Adopt the item as amended
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, John Filion, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson
Total members that voted No: 8 Members that voted No are Janet Davis, Sarah Doucette, Mike Layton, Giorgio Mammoliti, Ron Moeser, Gord Perks, Adam Vaughan, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are Karen Stintz

EX27.3 - 2013 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 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.

 

Column I

Column II

Column III

Property Class

2013 Recommended Tax Ratios(before Graduated Tax Rates)

2013 Ending Ratios

(after Graduated Tax Rates and Budgetary Levy Increase)

Residential

1.000000

1.000000

Multi-Residential

3.223500

3.181363

New Multi-Residential

1.000000

1.000000

Commercial General - Unbanded

3.159772

3.118468

Residual Commercial – Lowest Band

2.997000

2.757980

Residual Commercial – Highest Band

2.997000

3.118468

Industrial

3.159772

3.118468

Pipeline

1.923564

1.923564

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

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.

 

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

 

0.88440225

Residual Commercial

Highest Band

Greater than $1,000,000

1.00000000

 

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.

 

Column I

Column II

Column III

Column IV

Column V

Property Class

2013 Tax Rate for Base General Local Municipal Levy Before Graduated Tax rates

2013 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2013 Additional Tax Rate to Fund Budgetary Levy Increase

2013 Ending Municipal Tax Rate (excluding Charity rebates)

Residential

0.5232993%

0.5232993%

0.0104660%

0.5337653%

Multi-Residential

1.6868554%

1.6868554%

0.0112457%

1.6981011%

New Multi-Residential

0.5232993%

0.5232993%

0.0104660%

0.5337653%

Commercial

1.6535066%

1.6535066%

0.0110234%

1.6645300%

 

Column I

Column II

Column III

Column IV

Column V

Property Class

2013 Tax Rate for Base General Local Municipal Levy Before Graduated Tax rates

2013 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2013 Additional Tax Rate to Fund Budgetary Levy Increase

2013 Ending Municipal Tax Rate (excluding Charity rebates)

Residual Commercial –

Band 1

1.5683281%

1.4623650%

0.0097491%

1.4721141%

Residual Commercial –

Band 2

1.5683281%

1.6535066%

0.0110234%

1.6645300%

Industrial

1.6535066%

1.6535066%

0.0110234%

1.6645300%

Pipelines

1.0065996%

1.0065996%

0.0201320%

1.0267316%

Farmlands

0.1308248%

0.1308248%

0.0026165%

0.1334413%

Managed Forests

0.1308248%

0.1308248%

0.0026165%

0.1334413%

 

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.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0071112%

Residual Commercial

Lowest Band

0.0062891%

Residual Commercial

Highest Band

0.0071112%

 

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 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.

 

7.         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).

 

8.         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.

 

9.         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.

 

10.       City Council authorize the appropriate officials to take the necessary action to give effect thereto and grant authority for the introduction of the necessary bills in Council.

Origin

(January 8, 2013) Letter from the Budget Committee

Summary

Letter from the Budget Committee forwarding its decision from its meeting on January 8, 2013.

Background Information

(January 8, 2013) Letter from the Budget Committee forwarding its decision from its meeting of January 8, 2013
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-55160.htm
(January 4, 2013) Report from the Acting Deputy Manger and Chief Financial Officer on the 2013 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-55076.pdf

Motions

Motion to Adopt Item moved by Councillor Norman Kelly (Carried)
Source: Toronto City Clerk at www.toronto.ca/council