Item - 2017.EX29.17

Tracking Status

  • City Council adopted this item on December 5, 2017 without amendments.
  • This item was considered by the Executive Committee on November 28, 2017 and adopted without amendment. It will be considered by City Council on December 5, 2017.

EX29.17 - Creation of a New Property Tax Class for Creative Co-Location Facilities

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on December 5, 6, 7 and 8, 2017, adopted the following:

 

1.  City Council approve the policy objectives and key eligibility criteria for the creation of a new property class for Creative Co-Location Facilities as outlined in Appendix A to the report (November 20, 2017) from the Interim Chief Financial Officer and the Deputy City Manager, Cluster A.

 

2.  City Council request the Province to create a new property tax class for Creative Co-Location Facilities based on the policy objectives and key eligibility criteria set out in the report (November 20, 2017) from Interim Chief Financial Officer and the Deputy City Manager and that such property class be created as a property class for which municipalities be permitted to establish more detailed local criteria and property-specific by-laws, effective for the 2018 taxation year retroactive to January 1, 2018, and further, the Minister of Finance be requested to allow municipalities to set the tax rate for this new Property Tax Class.

 

3.  City Council direct the Interim Chief Financial Officer to include, as part of the 2018 tax rate and tax ratio setting process, the Creative Co-Location Facilities tax class, subject to the necessary regulations being approved and filed by the Province before such provision takes effect, with a report to the February 6, 2017 Executive Committee meeting as part of the "2018 Tax Rates and Related Matters" report.

 

4.  City Council direct the General Manager, Economic Development and Culture, in consultation with the Interim Chief Financial Officer and the City Solicitor, to establish detailed eligibility criteria for inclusion of properties in the proposed Creative Co-Location Facilities tax class, together with a process to approve inclusion of such properties in this tax class, and a process to address appeals related to the City's eligibility criteria, with a report to the February 6, 2017 Executive Committee meeting.

Background Information (Committee)

(November 20, 2017) Report and Appendix A from the Acting Chief Financial Officer and the Deputy City Manager, Cluster A on Creation of a New Property Tax Class for Creative Co-Location Facilities
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-109147.pdf
Appendix B - Minister of Finance Letter to Mayor Tory
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-109286.pdf
Appendix B - Part 2 - Minister of Finance Letter to Mayor Tory
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-109263.pdf

Communications (Committee)

(November 24, 2017) Letter from Marc Glassman, on behalf of the Steering Committee at 401 Richmond Street West (EX.Supp.EX29.17.1)
https://www.toronto.ca/legdocs/mmis/2017/ex/comm/communicationfile-74085.pdf
(November 27, 2017) Letter from Tim Jones, CEO, ARTSCAPE (EX.Supp.EX29.17.2)
https://www.toronto.ca/legdocs/mmis/2017/ex/comm/communicationfile-74103.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) Dec-06-2017 3:14 PM

Result: Carried Majority Required - EX29.17 - Adopt the item
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mark Grimes, Jim Hart, Michelle Holland, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, David Shiner, Michael Thompson, John Tory, Lucy Troisi, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Michael Ford, Stephen Holyday
Total members that were Absent: 7 Members that were absent are Vincent Crisanti, Justin J. Di Ciano, John Filion, Mary Fragedakis, Jim Karygiannis, Giorgio Mammoliti, James Pasternak

EX29.17 - Creation of a New Property Tax Class for Creative Co-Location Facilities

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council approve the policy objectives and key eligibility criteria for the creation of a new property class for Creative Co-Location Facilities, as outlined in Appendix A to the report (November 20, 2017) from the Acting Chief Financial Officer and the Deputy City Manager, Cluster A.

 

2.  City Council request the Province to create a new property tax class for Creative Co-Location Facilities based on the policy objectives and key eligibility criteria set out in this report and that such property class be created as a property class for which municipalities be permitted to establish more detailed local criteria and property-specific by-laws, effective for the 2018 taxation year retroactive to January 1, 2018, and further, the Minister of Finance be requested to allow municipalities to set the tax rate for this new Property Tax Class.

 

3.  City Council direct the Acting Chief Financial Officer to include, as part of the 2018 tax rate and tax ratio setting process, the Creative Co-Location Facilities tax class, subject to the necessary regulations being approved and filed by the Province before such provision takes effect, with a report to Executive Committee at its meeting of February 6, 2018 as part of the "2018 Tax Rates and Related Matters" report.

 

4.  City Council direct the General Manager, Economic Development and Culture, in consultation with the Acting Chief Financial Officer and the City Solicitor, to establish detailed eligibility criteria for inclusion of properties in the proposed Creative Co-Location Facilities tax class, together with a process to approve inclusion of such properties in this tax class, and a process to address appeals related to the City's eligibility criteria, with a report to Executive Committee at its meeting of February 6, 2018.

Origin

(November 20, 2017) Report from the Acting Chief Financial Officer and the Deputy City Manager, Cluster A

Summary

The most recent Provincial property reassessment has resulted in significant assessment increases for many property owners.  Some of these large increases were due to incorrect assessments (e.g. 401 Richmond Street West, downtown Yonge Street retail), which assessments have since been significantly reduced by the Municipal Property Assessment Corporation (MPAC).

 

Rapidly increasing land values resulting in significant property tax increases is a city-wide issue facing many properties beyond arts and culture facilities.  Similar concerns have been raised respecting organic food growers/retailers (Kensington Market), music venues, and main street retail on a broader scale (e.g. along the Eglinton corridor). 

 

For this reason, staff will be coming forward with potential options for mitigating tax increases which could include the re-instatement of the tax increase capping protection program for those properties in the commercial, industrial and multi-residential property classes that have previously reached their full Current Value Assessment (CVA) level of taxation and are no longer protected from large re-assessment related tax increases. This proposed policy option together with others will be reported to Executive Committee at its meeting of February 6, 2018, through the "2018 Tax Rates and Related Matters" report to be considered concurrently with the City's 2018 Capital and Operating Budgets.

 

Notwithstanding this, City Council has previously requested the Province to explore opportunities to support not-for-profit arts and culture organizations and incubators, including through property assessment tools.  The Ontario Minister of Finance has most recently extended his willingness to work with the City to establish a new property class for arts and culture facilities.

 

To seize on this opportunity, this report presents the City's policy objectives and proposed key eligibility criteria for the recommended new property class for Council approval as a first and required step in this process.  Upon receipt of this formal submission, Ministry staff will work with City staff in developing a regulatory framework for the creation of this class.  If adopted by the Province, the regulatory framework will provide flexibility for the City to design its own eligibility criteria beyond the broad parameters established by the Province.

Background Information

(November 20, 2017) Report and Appendix A from the Acting Chief Financial Officer and the Deputy City Manager, Cluster A on Creation of a New Property Tax Class for Creative Co-Location Facilities
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-109147.pdf
Appendix B - Minister of Finance Letter to Mayor Tory
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-109286.pdf
Appendix B - Part 2 - Minister of Finance Letter to Mayor Tory
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-109263.pdf

Communications

(November 24, 2017) Letter from Marc Glassman, on behalf of the Steering Committee at 401 Richmond Street West (EX.Supp.EX29.17.1)
https://www.toronto.ca/legdocs/mmis/2017/ex/comm/communicationfile-74085.pdf
(November 27, 2017) Letter from Tim Jones, CEO, ARTSCAPE (EX.Supp.EX29.17.2)
https://www.toronto.ca/legdocs/mmis/2017/ex/comm/communicationfile-74103.pdf

Motions

Motion to Adopt Item moved by Councillor Ana Bail„o (Carried)
Source: Toronto City Clerk at www.toronto.ca/council