Item - 2014.EX37.3

Tracking Status

  • City Council adopted this item on January 29, 2014 with amendments.
  • This item was considered by Executive Committee on January 22, 2014 and was adopted with amendments. It will be considered by City Council on January 29, 2014.
  • See also By-law 82-2014

EX37.3 - 2014 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on January 29 and 30, 2014, adopted the following:

 

1.         City Council approve a 2014 property tax levy increase reflecting a 2.23% residential increase, composed of a 1.73% 2014 budgetary levy increase and a 0.50% levy increase for the Scarborough Subway; and a 0.75% non-residential increase, composed of a 0.58% 2014 budgetary levy increase and a 0.17% levy increase for the Scarborough Subway.

 

To give effect to Part 1 above, current value assessment (CVA) and associated tax policy shifts, City Council approve the following:

 

2.         City Council adopt the 2014 tax ratios shown in Column II for each of the property classes set out below in Column I.

 

Column I

Column II

Property Class

2014 Recommended Tax Ratios(before Graduated Tax Rates)

Residential

1.000000

Multi-Residential

3.118468

New Multi-Residential

1.000000

Commercial General - Unbanded

3.118468

Residual Commercial – Lowest Band

2.921800

Residual Commercial – Highest Band

2.921800

Industrial

3.118468

Pipeline

1.923564

Farmlands

0.250000

Managed Forests

0.250000

 

3.         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 2014 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

0.8556474

Residual Commercial

Highest Band

Greater than $1,000,000

1.00000000

 

4.         City Council approve a 2014 property tax levy increase of 2.23% for residential, new multi-residential, pipeline, farmlands and managed forest (composed of a 1.73%  2014 budgetary  levy increase and a 0.5% levy increase for the Scarborough Subway), and 0.75% for commercial, industrial and multi-residential (composed of a 0.58% 2014 budgetary levy increase and a 0.17% levy increase for the Scarborough Subway) by adopting the 2014 tax rates set out in Parts 4a. and 4b. below:

 

a.                   City Council adopt the tax rates set out below in Column IV, which rates will raise a local municipal general tax levy for 2014 of $3,762,088,951, inclusive of an approximate 1.73% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and an approximate 0.58% 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 an additional local municipal general tax levy of $12,206,673 (inclusive of an approximate 0.5% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and an approximate 0.17% commercial, industrial and multi-residential tax rate increase) 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.

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Property Class

2014 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2014 Additional Tax Rate to Fund Budgetary Levy Increase

2014 Municipal Tax Rate (excluding Charity rebates)

(Column II+III)

2014 Additional Tax Rate to Fund Scarborough Subway

2014 Municipal Tax Rate Inclusive of Subway Rate

(excluding Charity rebates)

(Column IV+V)

Residential

0.5086660%

0.0087992%

0.5174652%

0.0025433%

0.5200085%

Multi-Residential

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

New Multi-Residential

0.5086660%

0.0087992%

0.5174652%

0.0025433%

0.5200085%

Commercial

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

Residual Commercial –

Band 1

1.3572782%

0.0078263%

1.3651045%

0.0022621%

1.3673666%

Residual Commercial –

Band 2

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

Industrial

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

Pipelines

0.9784515%

0.0169257%

0.9953772%

0.0048923%

1.0002695%

Farmlands

0.1271665%

0.0021998%

0.1293663%

0.0006358%

0.1300021%

Managed Forests

0.1271665%

0.0021998%

0.1293663%

0.0006358%

0.1300021%

 

5.         City Council determine that the 2014 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $6,579,482 to fund the mandatory 2014 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 2014 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 $6,381,597 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2014.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0076199%

Residual Commercial

Lowest Band

0.0065200%

Residual Commercial

Highest Band

0.0076199%

 

b.                   An additional tax rate of 0.0025536% be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $197,885 to fund the total estimated rebates to registered charities for properties in the industrial class in 2014.

 

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 2014 taxation year; and

 

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 2014 tax year.

 

7.         City Council direct the Deputy City Manager and Chief Financial Officer to report to the Executive Committee at its meeting scheduled for April 23, 2014, on the 2014 tax rates for school purposes, and the 2014 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 2014 ‘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 2014 and future years.

 

9.         City Council determine that:

 

a.         the instalment dates for the 2014 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; and

 

iii.         for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2014;

 

b.         the collection of taxes for 2014, other than those levied under By-law No. 1483-2013 (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 direct the Deputy City Manager and Chief Financial Officer to re-design the City's tax bill, for 2014 and future years, to incorporate a separate line on the bill to capture the Transit Expansion tax rate and associated tax levy, as part of the general tax levy.

 

11.       City Council request the Deputy City Manager and Chief Financial Officer to report to the Executive Committee on the feasibility and implications of amending the City's Tax Increase Cancellation and Tax Increase Deferral Programs, by amending the eligibility requirement that the property be owned solely by one or more eligible persons, to account for situations where another family member co-owns the property but does not reside at the property or contribute financially to it.

 

12.       City Council request the Deputy City Manager and Chief Financial Officer to report to the Executive Committee prior to the 2015 budget process on a new transparent process that ensures that the Current Value Assessment (CVA) and associated tax policy shifts are estimated in the tax rate information that is provided to Councillors and the public at the time of Budget Launch.

 

13.       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 14, 2014) Report from the Deputy City Manager and Chief Financial Officer on 2014 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2014/ex/bgrd/backgroundfile-65743.pdf

Background Information (City Council)

(January 28, 2014) Supplementary report from the Deputy City Manager and Chief Financial Officer on 2014 Property Tax Rates - Executive Committee Recommended Budget (EX37.3a)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-66302.pdf
(January 29, 2014) City Manager and Deputy City Manager and Chief Financial Officer presentation to Council on the 2014 Tax Supported Operating and Capital Budgets (EX37.3b)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-66318.pdf
(January 29, 2014) Summary of three tax scenarios submitted by the Deputy City Manager and Chief Financial Officer (EX37.3c)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-66368.pdf

Communications (Committee)

(January 22, 2014) E-mail from Linsey MacPhee, Toronto Drop-in Network (EX.New.EX37.3.1)
https://www.toronto.ca/legdocs/mmis/2014/ex/comm/communicationfile-44896.pdf

Communications (City Council)

(January 25, 2014) E-mail from Peter Clarke (CC.Supp.EX37.3.2)

Motions (City Council)

1a - Motion to Amend Item moved by Deputy Mayor Norman Kelly (Carried)

That:

 

1.         City Council approve a 2014 property tax levy increase reflecting a 2.23% residential increase, composed of a 1.73% 2014 budgetary levy increase and a 0.50% levy increase for the Scarborough Subway; and a 0.75% non-residential increase, composed of a 0.58% 2014 budgetary levy increase and a 0.17% levy increase for the Scarborough Subway.

 

2.         To give effect to Part 1 above, current value assessment (CVA) and associated tax policy shifts, City Council approve the attached recommendations:

 

1.         City Council adopt the 2014 tax ratios shown in Column II for each of the property classes set out below in Column I.

 

Column I

Column II

Property Class

2014 Recommended Tax Ratios(before Graduated Tax Rates)

Residential

1.000000

Multi-Residential

3.118468

New Multi-Residential

1.000000

Commercial General - Unbanded

3.118468

Residual Commercial – Lowest Band

2.921800

Residual Commercial – Highest Band

2.921800

Industrial

3.118468

Pipeline

1.923564

Farmlands

0.250000

Managed Forests

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 2014 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

0.8556474

Residual Commercial

Highest Band

Greater than $1,000,000

1.00000000

 

3.         City Council approve a 2014 property tax levy increase of 2.23% for residential, new multi-residential, pipeline, farmlands and managed forest (composed of a 1.73%  2014 budgetary  levy increase and a 0.5% levy increase for the Scarborough Subway), and 0.75% for commercial, industrial and multi-residential (composed of a 0.58% 2014 budgetary levy increase and a 0.17% levy increase for the Scarborough Subway) by adopting the 2014 tax rates set out in a and b below:

 

a.                   City Council adopt the tax rates set out below in Column IV, which rates will raise a local municipal general tax levy for 2014 of $3,762,088,951, inclusive of an approximate 1.73% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and an approximate 0.58% 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 an additional local municipal general tax levy of $12,206,673 (inclusive of an approximate 0.5% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and an approximate 0.17% commercial, industrial and multi-residential tax rate increase) 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.

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Property Class

2014 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2014 Additional Tax Rate to Fund Budgetary Levy Increase

2014 Municipal Tax Rate (excluding Charity rebates)

(Column II+III)

2014 Additional Tax Rate to Fund Scarborough Subway

2014 Municipal Tax Rate Inclusive of Subway Rate

(excluding Charity rebates)

(Column IV+V)

Residential

0.5086660%

0.0087992%

0.5174652%

0.0025433%

0.5200085%

Multi-Residential

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

New Multi-Residential

0.5086660%

0.0087992%

0.5174652%

0.0025433%

0.5200085%

Commercial

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

Residual Commercial –

Band 1

1.3572782%

0.0078263%

1.3651045%

0.0022621%

1.3673666%

Residual Commercial –

Band 2

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

Industrial

1.5862587%

0.0091466%

1.5954053%

0.0026438%

1.5980491%

Pipelines

0.9784515%

0.0169257%

0.9953772%

0.0048923%

1.0002695%

Farmlands

0.1271665%

0.0021998%

0.1293663%

0.0006358%

0.1300021%

Managed Forests

0.1271665%

0.0021998%

0.1293663%

0.0006358%

0.1300021%

 

4.         City Council determine that the 2014 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $6,579,482 to fund the mandatory 2014 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 2014 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 $6,381,597 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2014.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0076199%

Residual Commercial

Lowest Band

0.0065200%

Residual Commercial

Highest Band

0.0076199%

 

b.       An additional tax rate of 0.0025536% be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $197,885 to fund the total estimated rebates to registered charities for properties in the industrial class in 2014.

 

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 2014 taxation year; and

 

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 2014 tax year.

 

6.         City Council direct the Deputy City Manager and Chief Financial Officer to report to Executive Committee at its meeting scheduled for April 23, 2014, on the 2014 tax rates for school purposes, and the 2014 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 2014 ‘clawback’ rates).

 

7.         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 2014 and future years.

 

8.         City Council determine that:

 

a.         the instalment dates for the 2014 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; and

 

iii.        For taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2014;

 

b.         the collection of taxes for 2014, other than those levied under By-law No. 1483-2013 (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.

 

9.         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.

Vote (Amend Item) Jan-29-2014 6:50 PM

Result: Carried Majority Required - EX37.3 - Kelly - motion 1a
Total members that voted Yes: 32 Members that voted Yes are Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Sarah Doucette, John Filion, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 13 Members that voted No are Paul Ainslie, Maria Augimeri, Frank Di Giorgio, Paula Fletcher, Doug Ford, Rob Ford, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Ron Moeser, John Parker, Anthony Perruzza, David Shiner
Total members that were Absent: 0 Members that were absent are
Ruling by Speaker Frances Nunziata (Upheld)
Councillor Matlow requested that City Council vote separately on the 2014 budgetary levy increase and the levy increase for the Scarborough subway.

Speaker Nunziata ruled that motion 1a could not be split and would be voted on as a single proposition.
Challenged by Councillor Gord Perks


1b - Motion to Amend Item (Additional) moved by Deputy Mayor Norman Kelly (Carried)

That City Council direct the Deputy City Manager and Chief Financial Officer to re-design the City's tax bill, for 2014 and future years, to incorporate a separate line on the bill to capture the Transit Expansion tax rate and associated tax levy, as part of the general tax levy.

Vote (Amend Item (Additional)) Jan-29-2014 6:50 PM

Result: Carried Majority Required - EX37.3 - Kelly - motion 1b
Total members that voted Yes: 42 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, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Gloria Lindsay Luby, Giorgio Mammoliti, 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 Maria Augimeri, Doug Ford, Josh Matlow
Total members that were Absent: 0 Members that were absent are

2 - Motion to Amend Item moved by Mayor Rob Ford (Redundant)

That City Council approve a 1.75 percent tax increase for 2014, inclusive of the 0.5% levy for the Scarborough Subway, and current value assessment (CVA) and associated tax policy shifts.

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled motion 2 by Mayor Ford redundant due to Council's adoption of motion 1a by Deputy Mayor Kelly.


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

That City Council approve a 0 percent tax increase for 2014.

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled motion 3 by Councillor Mammoliti redundant due to Council's adoption of motion 1a by Deputy Mayor Kelly.


4 - Motion to Amend Item moved by Councillor David Shiner (Redundant)

That:

 

1.         City Council approve a 2014 property tax levy increase reflecting a 0.50% residential increase, composed of a 0% 2014 budgetary levy increase and a 0.50% levy increase for the Scarborough Subway; and a 0.17% non-residential increase, composed of a 0% 2014 budgetary levy increase and a 0.17% levy increase for the Scarborough Subway.

 

2.         To give effect to Part 1 above, current value assessment (CVA) and associated tax policy shifts, City Council approve the attached recommendations:

 

1.         City Council adopt the 2014 tax ratios shown in Column II for each of the property classes set out below in Column I.

 

Column I

Column II

Property Class

2014 Recommended Tax Ratios(before Graduated Tax Rates)

Residential

1.000000

Multi-Residential

3.118468

New Multi-Residential

1.000000

Commercial General - Unbanded

3.118468

Residual Commercial – Lowest Band

2.921800

Residual Commercial – Highest Band

2.921800

Industrial

3.118468

Pipeline

1.923564

Farmlands

0.250000

Managed Forests

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 2014 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

0.8556474

Residual Commercial

Highest Band

Greater than $1,000,000

1.00000000

 

3.         Council approve a 2014 property tax levy increase of 0.50% for residential, new multi-residential, pipeline, farmlands and managed forest (composed of a 0.00%  2014 budgetary  levy increase and a 0.5% levy increase for the Scarborough Subway), and 0.17% for commercial, industrial and multi-residential (composed of a 0.00% 2014 budgetary levy increase and a 0.17% levy increase for the Scarborough Subway) by adopting the 2014 tax rates set out in a and b below:

 

a.          City Council adopt the tax rates set out below in Column IV, which rates will raise a local municipal general tax levy for 2014 of $3,719,857,155, inclusive of an approximate 0.00% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and an approximate 0.00% 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 an additional local municipal general tax levy of $12,206,673 (inclusive of an approximate 0.5% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and an approximate 0.17% commercial, industrial and multi-residential tax rate increase) 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.

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Property Class

2014 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2014 Additional Tax Rate to Fund Budgetary Levy Increase

2014 Municipal Tax Rate (excluding Charity rebates)

(Column II+III)

2014 Additional Tax Rate to Fund Scarborough Subway

2014 Municipal Tax Rate Inclusive of Subway Rate

(excluding Charity rebates)

(Column IV+V)

Residential

0.5086660%

0.0000000%

0.5086660%

0.0025433%

0.5112093%

Multi-Residential

1.5862587%

0.0000000%

1.5862587%

0.0026438%

1.5889025%

New Multi-Residential

0.5086660%

0.0000000%

0.5086660%

0.0025433%

0.5112093%

Commercial

1.5862587%

0.0000000%

1.5862587%

0.0026438%

1.5889025%

Residual Commercial –

Band 1

1.3572782%

0.0000000%

1.3572782%

0.0022621%

1.3595403%

Residual Commercial –

Band 2

1.5862587%

0.0000000%

1.5862587%

0.0026438%

1.5889025%

Industrial

1.5862587%

0.0000000%

1.5862587%

0.0026438%

1.5889025%

Pipelines

0.9784515%

0.0000000%

0.9784515%

0.0048923%

0.9833438%

Farmlands

0.1271665%

0.0000000%

0.1271665%

0.0006358%

0.1278023%

Managed Forests

0.1271665%

0.0000000%

0.1271665%

0.0006358%

0.1278023%

 

4.         City Council determine that the 2014 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $6,579,482 to fund the mandatory 2014 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 2014 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 $6,381,597 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2014.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0076199%

Residual Commercial

Lowest Band

0.0065200%

Residual Commercial

Highest Band

0.0076199%

 

b.         An additional tax rate of 0.0025536% be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $197,885 to fund the total estimated rebates to registered charities for properties in the industrial class in 2014.

 

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 2014 taxation year; and

 

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 2014 tax year.

 

6.         City Council direct the Deputy City Manager and Chief Financial Officer to report to Executive Committee at its meeting scheduled for April 23, 2014, on the 2014 tax rates for school purposes, and the 2014 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 2014 ‘clawback’ rates).

 

7.         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 2014 and future years.

 

8.         Council determine that:

 

a.         the instalment dates for the 2014 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; and

 

iii.        For taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2014;

 

b.         the collection of taxes for 2014, other than those levied under By-law No. 1483-2013 (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.

 

9.         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.

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled motion 4 by Councillor Shiner redundant due to Council's adoption of motion 1a by Deputy Mayor Kelly.


5 - Motion to Amend Item moved by Councillor Frank Di Giorgio (Redundant)

That:

 

1.         That City Council approve a 2.23 percent tax increase, composed of a 1.25 percent tax increase for 2014, plus a 0.5% levy for the Scarborough Subway, and the current value assessment (CVA) and associated tax policy shifts.

 

2.         To give effect to Part 1 above, City Council approve the following recommendations contained in the supplementary report (January 28, 2014) from the Deputy City Manager and Chief Financial Officer [EX37.3a]:

 

1.         City Council adopt the 2014 tax ratios shown in Column II for each of the property classes set out below in Column I.

 

Column I

Column II

Property Class

2014 Recommended Tax Ratios(before Graduated Tax Rates)

Residential

1.000000

Multi-Residential

3.118468

New Multi-Residential

1.000000

Commercial General - Unbanded

3.118468

Residual Commercial – Lowest Band

2.921800

Residual Commercial – Highest Band

2.921800

Industrial

3.118468

Pipeline

1.923564

Farmlands

0.250000

Managed Forests

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 2014 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

0.8556474

Residual Commercial

Highest Band

Greater than $1,000,000

1.00000000

 

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 2014 of $3,750,288,867, inclusive of an approximate 1.25% residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, and an approximate 0.42% 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 an additional local municipal general tax levy of $12,206,673 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.

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Property Class

2014 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2014 Additional Tax Rate to Fund Budgetary Levy Increase

2014 Municipal Tax Rate (excluding Charity rebates)

(Column II+III)

2014 Additional Tax Rate to Fund Scarborough Subway

2014 Municipal Tax Rate Inclusive of Subway Rate

(excluding Charity rebates)

(Column IV+V)

Residential

0.5086660%

0.0063406%

0.5150066%

0.0025433%

0.5175499%

Multi-Residential

1.5862587%

0.0065909%

1.5928496%

0.0026438%

1.5954934%

New Multi-Residential

0.5086660%

0.0063406%

0.5150066%

0.0025433%

0.5175499%

Commercial

1.5862587%

0.0065909%

1.5928496%

0.0026438%

1.5954934%

Residual Commercial –

Band 1

1.3572782%

0.0056396%

1.3629178%

0.0022621%

1.3651799%

Residual Commercial –

Band 2

1.5862587%

0.0065909%

1.5928496%

0.0026438%

1.5954934%

Industrial

1.5862587%

0.0065909%

1.5928496%

0.0026438%

1.5954934%

Pipelines

0.9784515%

0.0121964%

0.9906479%

0.0048923%

0.9955402%

Farmlands

0.1271665%

0.0015852%

0.1287517%

0.0006358%

0.1293875%

Managed Forests

0.1271665%

0.0015852%

0.1287517%

0.0006358%

0.1293875%

 

4.         City Council determine that the 2014 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $6,579,482 to fund the mandatory 2014 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 2014 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 $6,381,597 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2014.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.0076199%

Residual Commercial

Lowest Band

0.0065200%

Residual Commercial

Highest Band

0.0076199%

 

b.         An additional tax rate of 0.0025536% be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $197,885 to fund the total estimated rebates to registered charities for properties in the industrial class in 2014.

 

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 2014 taxation year; and

 

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 2014 tax year.

 

6.         City Council direct the Deputy City Manager and Chief Financial Officer to report to Executive Committee at its meeting scheduled for April 23, 2014, on the 2014 tax rates for school purposes, and the 2014 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 2014 ‘clawback’ rates).

 

7.         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 2014 and future years.

 

8.         City Council determine that:

 

a.         the instalment dates for the 2014 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; and

 

iii.        for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2014;

 

b.         the collection of taxes for 2014, other than those levied under By-law No. 1483-2013 (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.

 

9.         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.

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled motion 5 by Councillor Di Giorgio redundant due to Council's adoption of motion 1a by Deputy Mayor Kelly.


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

That City Council request the Deputy City Manager and Chief Financial Officer to report to Executive Committee on the feasibility and implications of amending the City's Tax Increase Cancellation and Tax Increase Deferral Programs, by amending the eligibility requirement that the property be owned solely by one or more eligible persons, to account for situations where another family member co-owns the property but does not reside at the property or contribute financially to it.

Vote (Amend Item (Additional)) Jan-29-2014 6:51 PM

Result: Carried Majority Required - EX37.3 - Augimeri - motion 6
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Michelle Berardinetti, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Mike Layton, Chin Lee, Peter Leon, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 9 Members that voted No are Ana Bail„o, Shelley Carroll, Mike Del Grande, Doug Ford, Rob Ford, Norman Kelly, Denzil Minnan-Wong, John Parker, Michael Thompson
Total members that were Absent: 0 Members that were absent are

7 - Motion to Amend Item (Additional) moved by Councillor Shelley Carroll (Carried)

That City Council request the Deputy City Manager and Chief Financial Officer to report to the Executive Committee prior to the 2015 budget process on a new transparent process that ensures that the Current Value Assessment (CVA) and associated tax policy shifts are estimated in the tax rate information that is provided to Councillors and the public at the time of Budget Launch.

Vote (Amend Item (Additional)) Jan-29-2014 6:52 PM

Result: Carried Majority Required - EX37.3 - Carroll - motion 7
Total members that voted Yes: 45 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, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, 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: 0 Members that voted No are
Total members that were Absent: 0 Members that were absent are

Point of Privilege by Councillor Giorgio Mammoliti

Councillor Mammoliti, rising on a Point of Privilege, stated that staff are giving long responses to questions, which takes time from Members and this is unfair to the Members.


Point of Order by Councillor Josh Colle

Councillor Colle, rising on a Point of Order, asked the Speaker whether the Committee Chair is permitted extra speaking time.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Order and confirmed that the Committee Chair is permitted an extra two minutes of speaking time with the consent of Council.


Point of Order by Councillor Gord Perks

Councillor Perks, rising on a Point of Order, stated that Councillor Mammoliti's motions are not in order on this Item as Council  is debating the tax rate and not programming.

Ruling by Deputy Speaker John Parker
Deputy Speaker Parker accepted the Point of Order and ruled that Councillor Mammoliti's second motion was not in order on Item EX37.3 and could be placed on Item EX37.1.


Point of Order by Councillor Anthony Perruzza

Councillor Perruzza, rising on a Point of Order, requested the Deputy Speaker to clarify the Item as it relates to Current Value Assessment so Members and the public understand what is under consideration.

Ruling by Deputy Speaker John Parker
Deputy Speaker Parker did not accept Councillor Perruzza's Point of Order.

EX37.3 - 2014 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee forwards this item to City Council for consideration.

Decision Advice and Other Information

The Executive Committee:

 

1.         Directed the Deputy City Manager and Chief Financial Officer to report directly to the January 29, 2014 meeting of City Council on the revised 2014 property tax rates reflecting the Executive Committee's recommendations, including:

 

a.         a 1.25% 2014 budgetary levy increase for residential and a 0.42% 2014 budgetary levy increase on non-residential;

 

b.         a 0.5% levy for the Scarborough subway; and

 

c.         the necessary rates to incorporate current value assessment (CVA), and associated tax policy shifts.

Origin

(January 14, 2014) Report from the Deputy City Manager and Chief Financial Officer

Summary

This report presents the 2014 municipal tax ratios and 2014 municipal tax rates together with the Current Value Assessment (CVA) changes for 2014. Specifically, the tax ratios and rates recommended in this report provide for:

 

-           continuation of the City’s Enhancing Toronto’s Business Climate strategy in lowering business tax rates;

-           continued property tax assistance for low-income seniors and low-income disabled persons;

-           continued support to encourage the development of purpose-built rental properties; and

-           funding for the Scarborough corridor subway.

Background Information

(January 14, 2014) Report from the Deputy City Manager and Chief Financial Officer on 2014 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2014/ex/bgrd/backgroundfile-65743.pdf

Communications

(January 22, 2014) E-mail from Linsey MacPhee, Toronto Drop-in Network (EX.New.EX37.3.1)
https://www.toronto.ca/legdocs/mmis/2014/ex/comm/communicationfile-44896.pdf

Motions

Motion to Amend Item moved by Deputy Mayor Norman Kelly (Carried)

The Executive Committee:

 

1.         Forward the item to City Council for consideration.

 

2.         Direct the Deputy City Manager and Chief Financial Officer to report directly to the January 29, 2014 meeting of City Council on the revised 2014 property tax rates reflecting the Executive Committee's recommendations, including:

 

a.         a 1.25% 2014 budgetary levy increase for residential and a 0.42% 2014 budgetary levy increase on non-residential;

 

b.         a 0.5% levy for the Scarborough subway; and

 

c.         the necessary rates to incorporate current value assessment (CVA), and associated tax policy shifts.

Vote (Amend Item) Jan-22-2014

Result: Carried Majority Required
Total members that voted Yes: 9 Members that voted Yes are Gary Crawford, Frank Di Giorgio, Norman Kelly (Chair), Peter Leon, Denzil Minnan-Wong, Cesar Palacio, Anthony Perruzza, David Shiner, Michael Thompson
Total members that voted No: 2 Members that voted No are Rob Ford, Peter Milczyn
Total members that were Absent: 2 Members that were absent are Vincent Crisanti, Giorgio Mammoliti
Source: Toronto City Clerk at www.toronto.ca/council