Item - 2018.EX32.4

Tracking Status

  • City Council adopted this item on March 26, 2018 with amendments.
  • This item was considered by Executive Committee on March 19, 2018 and was adopted with amendments. It will be considered by City Council on March 26, 2018.
  • See also By-laws 299-2018, 300-2018

EX32.4 - Third Party Sign Tax - Review and Proposed Amendments

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on March 26 and 27, 2018, adopted the following:

 

1.  City Council amend Chapter 771, Taxation, Third Party Sign Tax as outlined in Attachment 1 to the report (March 8, 2018) from the Treasurer and the Interim Chief Building Official and Executive Director, Toronto Building, including the definitions, administrative changes, and clarification of the exemption provided under Section 771-8K, to come into effect upon enactment and have any and all identified retroactive effects and impacts.

 

2.  City Council amend Chapter 771, Taxation, Third Party Sign Tax as outlined in Attachment 2 to the report (March 8, 2018) from the Treasurer and the Interim Chief Building Official and Executive Director, Toronto Building, implementing modifications to the Sign Classes, annual indexing formula, and the annual tax rates for all sign classes, commencing in 2019.

 

3.  City Council authorize the City Solicitor to prepare the necessary bills for introduction in Council to implement City Council's decision, subject to such stylistic and technical changes to the draft bills as may be required.

 

4.  City Council request the Treasurer to further consult with impacted sign owners, particularly Class 5 and 6, to review the distribution and balancing of the Third Party Sign Tax rates with other classes and report back prior to the 2019 Budget process.

 

5.  City Council request the Treasurer, in consultation with the Chief Building Official and Executive Director, Toronto Building, to consider the development and application of an annual surcharge on signs that are not authorized under Chapter 694, Signs, General and to report back prior to the 2019 Budget process.

Background Information (Committee)

(March 8, 2018) Report from the Treasurer and the Interim Chief Building Official and Executive Director, Toronto Building on Third Party Sign Tax - Review and Proposed Amendments
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-112997.pdf
Attachments 1 to 4
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-113057.pdf

Communications (Committee)

(March 14, 2018) Letter from Michele Erskine, Chief Executive Officer, Outfront Media Canada (EX.Supp.EX32.4.1)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79066.pdf
(March 14, 2018) Letter from Randy Otto, President, Pattison Outdoor Advertising (EX.Supp.EX32.4.2)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79067.pdf
(March 14, 2018) Letter from Karine Moses, President, Astral Out of Home and Vice President, Bell Media Ventes/Sales Quebec (EX.Supp.EX32.4.3)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79068.pdf
(March 14, 2018) Letter from Paul C Seaman, Vice President, Real Estate and Public Affairs, Branded Cities (EX.Supp.EX32.4.4)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79069.pdf
(March 16, 2018) Letter from Claire Hopkinson, Director and Chief Executive Officer, Toronto Arts Council (EX.Supp.EX32.4.5)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79075.pdf

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor John Filion (Carried)

That City Council request the Treasurer, in consultation with the Chief Building Official and Executive Director, Toronto Building, to consider the development and application of an annual surcharge on signs that are not authorized under Chapter 694, Signs, General and to report back prior to the 2019 Budget process.

Vote (Amend Item (Additional)) Mar-26-2018 5:45 PM

Result: Carried Majority Required - EX32.4 - Filion - motion 1
Total members that voted Yes: 26 Members that voted Yes are Paul Ainslie, Maria Augimeri, Jon Burnside, John Campbell, Josh Colle, Joe Cressy, Janet Davis, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Jim Hart, Michelle Holland, Mike Layton, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Cesar Palacio, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, Lucy Troisi, Kristyn Wong-Tam
Total members that voted No: 14 Members that voted No are Ana Bail„o, Christin Carmichael Greb, Vincent Crisanti, Glenn De Baeremaeker, Michael Ford, Stephen Holyday, Jim Karygiannis, Norman Kelly, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, David Shiner, Michael Thompson, John Tory
Total members that were Absent: 5 Members that were absent are Shelley Carroll, Gary Crawford, Sarah Doucette, Chin Lee, Giorgio Mammoliti

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

That City Council amend Executive Committee Recommendation 4 by adding the words "to develop an option that increases total taxes by approximately 6.2 percent representing the difference between inflation and rate increases since 2010, and" so that it now reads as follows:

 

4.  City Council request the Treasurer to develop an option that increases total taxes by approximately 6.2 percent representing the difference between inflation and rate increases since 2010, and to further consult with impacted sign owners, particularly Class 5 and 6, to review the distribution and balancing of the Third Party Sign Tax rates with other classes and report back prior to the 2019 Budget process.

Vote (Amend Item) Mar-26-2018 5:46 PM

Result: Lost (tie) Majority Required - EX32.4 - Davis - motion 2
Total members that voted Yes: 20 Members that voted Yes are Paul Ainslie, Maria Augimeri, John Campbell, Josh Colle, Joe Cressy, Janet Davis, Glenn De Baeremaeker, John Filion, Paula Fletcher, Mary Fragedakis, Jim Hart, Michelle Holland, Mike Layton, Josh Matlow, Joe Mihevc, Gord Perks, Jaye Robinson, Neethan Shan, John Tory, Kristyn Wong-Tam
Total members that voted No: 20 Members that voted No are Ana Bail„o, Jon Burnside, Christin Carmichael Greb, Vincent Crisanti, Justin J. Di Ciano, Frank Di Giorgio, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, David Shiner, Michael Thompson, Lucy Troisi
Total members that were Absent: 5 Members that were absent are Shelley Carroll, Gary Crawford, Sarah Doucette, Chin Lee, Giorgio Mammoliti

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Mar-26-2018 5:47 PM

Result: Carried Majority Required - EX32.4 - Adopt the item as amended
Total members that voted Yes: 34 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Joe Cressy, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Paula Fletcher, Mary Fragedakis, Mark Grimes, Jim Hart, Michelle Holland, Stephen Holyday, Norman Kelly, Mike Layton, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, David Shiner, John Tory, Lucy Troisi, Kristyn Wong-Tam
Total members that voted No: 6 Members that voted No are Janet Davis, John Filion, Michael Ford, Jim Karygiannis, Denzil Minnan-Wong, Michael Thompson
Total members that were Absent: 5 Members that were absent are Shelley Carroll, Gary Crawford, Sarah Doucette, Chin Lee, Giorgio Mammoliti

EX32.4 - Third Party Sign Tax - Review and Proposed Amendments

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council approve the amendments to Chapter 771, Taxation, Third Party Sign Tax contained in Attachment 1 to the report (March 8, 2018) from the Treasurer and the Interim Chief Building Official and Executive Director, Toronto Building, including the definitions, administrative changes, and clarification of the exemption provided under Section 771-8K, to come into effect upon enactment and have any and all identified retroactive effects and impacts.

 

2.  City Council approve the amendments to Chapter 771, Taxation, Third Party Sign Tax contained in Attachment 2 to the report (March 8, 2018) from the Treasurer and the Interim Chief Building Official and Executive Director, Toronto Building, implementing modifications to the Sign Classes, annual indexing formula, and the annual tax rates for all sign classes, commencing in 2019.

 

3.  City Council authorize the City Solicitor to prepare the necessary Bills for introduction in Council to implement the above recommendations, subject to such stylistic and technical changes to the draft bills as may be required.

 

4.  City Council request the Treasurer to further consult with impacted sign owners, particularly Class 5 and 6, to review the distribution and balancing of the Third Party Sign Tax rates with other classes and report back prior to the 2019 Budget process.

Origin

(March 8, 2018) Report from the Treasurer and the Interim Chief Building Official and Executive Director, Toronto Building

Summary

This report proposes amendments to Chapter 771 of the Municipal Code (Taxation, Third Party Sign Tax) to clarify which sign owners are exempt from Third Party Sign Taxes. It proposes reorganizing and redefining the five existing Sign Classes in the By-law in order to establish more appropriate tax rates for each sign class based on their impact. Part of this reorganizing and redefining of the sign classes includes the introduction of a sixth Sign Class, with the corresponding tax rate, for substantially larger electronic signs with greater impact than other signs. The report also updates the current definitions in Chapter 771 to be consistent with recent amendments to the Sign By-Law, and proposes that the annual tax increase for all Sign Classes reflect the annual rate of inflation effective 2019 and onward.

 

The proposed amendments result in only inflationary increases to the 2019 tax rates for approximately 88 percent of third party signs, an above inflation increase for approximately 2 percent of signs, and a tax decrease for approximately 10 percent of signs. The proposed amendments will have no impact on the sign tax classes or tax rates in 2018.

Background Information

(March 8, 2018) Report from the Treasurer and the Interim Chief Building Official and Executive Director, Toronto Building on Third Party Sign Tax - Review and Proposed Amendments
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-112997.pdf
Attachments 1 to 4
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-113057.pdf

Communications

(March 14, 2018) Letter from Michele Erskine, Chief Executive Officer, Outfront Media Canada (EX.Supp.EX32.4.1)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79066.pdf
(March 14, 2018) Letter from Randy Otto, President, Pattison Outdoor Advertising (EX.Supp.EX32.4.2)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79067.pdf
(March 14, 2018) Letter from Karine Moses, President, Astral Out of Home and Vice President, Bell Media Ventes/Sales Quebec (EX.Supp.EX32.4.3)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79068.pdf
(March 14, 2018) Letter from Paul C Seaman, Vice President, Real Estate and Public Affairs, Branded Cities (EX.Supp.EX32.4.4)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79069.pdf
(March 16, 2018) Letter from Claire Hopkinson, Director and Chief Executive Officer, Toronto Arts Council (EX.Supp.EX32.4.5)
https://www.toronto.ca/legdocs/mmis/2018/ex/comm/communicationfile-79075.pdf

Speakers

Leroy Cassanova, Director of Real Estate, Astral Media Outdoor
Barry Wilde, Pattison Outdoor Advertising
Janet Davis
Gord Perks

Motions

Motion to Amend Item (Additional) moved by Councillor Gary Crawford (Carried)

That City Council request the Treasurer to further consult with impacted sign owners, particularly Class 5 and 6, to review the distribution and balancing of the Third Party Sign Tax rates with other classes and report back prior to the 2019 Budget process.  


Motion to Adopt Item as Amended moved by Mayor John Tory (Carried)
Source: Toronto City Clerk at www.toronto.ca/council