Item - 2019.EX2.1

Tracking Status

EX2.1 - 2019 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on March 7, 2019, adopted the following:

 

1.  In respect of calculations to establish 2019 tax rates and tax ratios, City Council elect the following in order to determine the notional tax rates to raise the previous year's levies:

 

a.  subject to receiving the necessary amendment to Ontario Regulation 121/07 for the 2019 taxation year, to exclude the assessment of a property in a property class from the calculation of the total assessment of the properties in that property class if the current value of the property has increased by 100 percent or more or decreased by 25 percent or more, in accordance with subsection 2.2(4), paragraph 2 of Ontario Regulation 121/07; and

 

b.  to adjust the total assessment for property in a property class so that the assessment excludes changes to the tax roll for the previous year resulting from eligible assessment-related losses from prior years, in accordance with an election under subsection 19 (4) of Ontario Regulation 121/07 to make subsections 19 (4.2), (4.3) and (4.4) apply.

 

2.  City Council adopt the 2019 tax ratios shown in Column II for each of the property classes set out below in Column I:

 

Column I

Column II

(to be adopted)

Column III

(for information only)

Property Class

2019 Recommended Tax Ratios (before Graduated Tax Rates)

2019 Ending Ratios (after Graduated Tax Rates and Levy Increases)

Residential

1.000000

1.000000

Multi-Residential

2.344422

2.275033

New Multi-Residential

1.000000

1.000000

Commercial General

2.780000

2.738860

Residual Commercial - Band 1

2.665000

2.432925

Residual Commercial - Band 2

2.665000

2.738860

Industrial

2.763161

2.708639

Pipeline

1.923564

1.923564

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

3.  Subject to receiving the necessary amendment to Ontario Regulation 121/07 for the 2019 taxation year, City Council elect to raise the tax rates on the restricted property classes as follows:

 

a.  on the Commercial Property Classes, by one-half of the percentage tax rate increase on the unrestricted property classes (residential, new multi-residential, pipelines, farmlands, and managed forests);

 

b.  on the Industrial Property Classes, by one-third of the percentage tax rate increase on the unrestricted property classes (residential, new multi-residential, pipelines, farmlands, and managed forests); and

 

c.  on the Multi-Residential Property Classes, no tax increase.

 

4.  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 2019 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 1

Less than or equal to $1,000,000

0.888298

Residual Commercial

Highest Band 2

Greater than $1,000,000

1.000000

 

5. City Council adopt:         

 

a.  the tax rates set out below in Column V, which rates will raise a local municipal general tax levy for 2019 of $4,383,289,139 inclusive of a 2.55 percent residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, a 1.275 percent commercial tax rate increase, and a 0.85 percent industrial tax rate increase; and

 

b.  the additional tax rates set out below in Column VI, which rates will raise an additional special general tax levy of $15,209,430 dedicated for priority transit and housing capital projects (the "City's Building Fund levy"), in accordance with Part 6 of City Council's decision on Item EX22.2 headed "2017 Capital and Operating Budgets":

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Column VII

Property Class

2019 Tax Rate for General Local Municipal Levy before Graduated Tax Rates

2019 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2019 Additional Tax Rate to Fund Budgetary Levy Increase

2019 Municipal Tax Rate

2019 Additional Tax Rate to Fund City Building

2019 Municipal Tax Rate Inclusive of City Building Fund Rate

 

 

 

 

(excluding Charity rebates)

 

(excluding Charity rebates)

 

 

 

 

(Column III+IV)

 

(Column V+VI)

Residential

0.440339%

0.440339%

0.011229%

0.451568%

0.002202%

0.453770%

Multi-Residential

1.032342%

1.032342%

0.000000%

1.032342%

0.000000%

1.032342%

New Multi-Residential

0.440339%

0.440339%

0.011229%

0.451568%

0.002202%

0.453770%

Commercial

General

1.224144%

1.224144%

0.015608%

1.239752%

0.003060%

1.242812%

Residual Commercial – Band 1

1.173505%

1.087405%

0.013864%

1.101269%

0.002719%

1.103988%

Residual Commercial – Band 2

1.173505%

1.224144%

0.015608%

1.239752%

0.003060%

1.242812%

Industrial

1.216729%

1.216729%

0.010342%

1.227071%

0.002028%

1.229099%

Pipelines

0.847021%

0.847021%

0.021599%

0.868620%

0.004235%

0.872855%

Farmlands

0.110085%

0.110085%

0.002807%

0.112892%

0.000550%

0.113442%

Managed Forests

0.110085%

0.110085%

0.002807%

0.112892%

0.000550%

0.113442%

 

6.  City Council determine that the 2019 Non-Program Tax Account for Rebates to Charities in the Commercial class be set in the amount of $4,615,957 to fund the mandatory 2019 property tax rebates to registered charities in the commercial property classes, which provision is to be funded, for a net impact on the 2019 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 $4,615,957 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2019:

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.003939%

Residual Commercial

Lowest Band

0.003499%

Residual Commercial

Highest Band

0.003939%

 

7.  City Council reduce the final Industrial Property Class tax rate by subtracting 0.011266 percent from the final tax rate, in order to reduce the municipal taxes on the industrial tax class by $943,000 - being one half of the estimated municipal portion of industrial taxes that were rebated under the vacant unit rebate program for 2017, as directed by City Council at its meeting on May 24, 2017, and the Budget Committee 2019 recommended Non-Program Operating Budget be reduced by the same amount.

 

8.  City Council allocate $935,000, equivalent to 15 percent of all incremental municipal tax revenue arising from commercial and residential assessment growth in the Tax Increment Financing Zones for 2019, net of any Imagination, Manufacturing, Innovation and Technology Grants attributable to this assessment growth, to the SmartTrack Funding Reserve Fund XR1731, in accordance with Part 19.e. of City Council's decision on Item EX33.1 (April 2018), headed "Implementation of the SmartTrack Stations Program and the Metrolinx Regional Express Rail Program. 

   

9.  City Council direct the Chief Financial Officer and Treasurer to report in April to the Executive Committee, or directly to Council or a special meeting of Council if necessary, on the 2019 tax rates for school purposes, and the 2019 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 2019 'clawback' rates).

 

10.  City Council adopt the Property Tax Capping Policy, for the 2019 taxation year, to limit tax increases (for the 2019 taxation year) for the commercial, industrial, and multi-residential property classes by capping taxes at 10 percent of the preceding year's annualized taxes, through the adoption of subsection 292(1), paragraph 1, of the City of Toronto Act, 2006.

 

11.  City Council amend Municipal Code Chapter 767, Taxation, Property Tax (Section 767-11B) to change the definition of a "low-income disabled person", to add a further category of disability support by adding the words: "(6)  Such other financial support(s) or circumstances in respect of a person's disability, that, in the opinion of the Controller, establish that a person is a low-income disabled person for the purposes of this section"; and that the necessary corresponding amendments also be made to the definition of "low-income disabled person" in Municipal Code Chapter 849, Water and Sewage Services and Utility Bill (Section 849-14.1) to reflect this change.

 

12.  City Council determine that:

 

a.  the instalment dates for the 2019 final tax bills be set as follows:

 

i.  the regular instalment dates be July 2, August 1 and September 3, 2019;

 

ii.  for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 15, September 16, October 15, November 15 and December 16, 2019; and

 

iii.  for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2019; and

 

b.  the collection of taxes for 2019, other than those levied under By-law 2-2019 (the interim levy by-law) be authorized.

 

13.   City Council adopt:

 

a.  the tax rate for municipal purposes for the Creative Co-location Facility subclass of the Commercial and Commercial Residual Property classes be set at a 50 percent reduction of the Commercial and Commercial Residual Property class tax rate for 2019 and all following years; and

 

b.  the tax rate for municipal purposes for the Creative Co-location Facility subclass of the Industrial Property class be set at a 50 percent reduction of the Industrial Property class tax rate for 2019 and all following years.

 

14.  City Council approve revised eligibility criteria for the Creative Co-Location Facilities Property Tax Subclass by creating a new membership-model category of eligible properties, outlined in Attachment 1 to the report (February 19, 2019) from the General Manager, Economic Development and Culture.

 

15. City Council authorize the appropriate officials to take the necessary actions to give effect to City Council's decision and authorize the introduction of the necessary Bills in Council.

Background Information (Committee)

(February 21, 2019) Report from the Chief Financial Officer and Treasurer on 2019 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-129497.pdf

Motions (City Council)

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

That City Council increase the Residential Property Tax rate by an additional 2 percent and that the rates for the other property categories be adjusted proportionately.

Vote (Amend Item) Mar-07-2019 11:58 AM

Result: Lost Majority Required - EX2.1 - Perks - motion 1
Total members that voted Yes: 5 Members that voted Yes are Joe Cressy, Paula Fletcher, Mike Layton, Gord Perks, Kristyn Wong-Tam
Total members that voted No: 20 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, John Filion, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 1 Members that were absent are Denzil Minnan-Wong

2a - Motion to Amend Item moved by Councillor Mike Layton (Lost)

That City Council increase the proposed residential property tax rate by an additional 0.161 percent that could allow for City Council to fund $4.2 million in programs, such as the subsidies applied to child care fees, when it considers Item EX2.5 on the 2019 Operating and Capital Budgets.

Vote (Amend Item) Mar-07-2019 11:59 AM

Result: Lost Majority Required - EX2.1 - Layton - motion 2a
Total members that voted Yes: 8 Members that voted Yes are Shelley Carroll, Joe Cressy, John Filion, Paula Fletcher, Mike Layton, Josh Matlow, Gord Perks, Kristyn Wong-Tam
Total members that voted No: 17 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 1 Members that were absent are Denzil Minnan-Wong

2b - Motion to Amend Item moved by Councillor Mike Layton (Lost)

That City Council increase the proposed residential property tax rate by an additional 0.022 percent that could allow for City Council to fund $0.655 million in programs, such as ravine litter picking program, when it considers Item EX2.5 on the 2019 Operating and Capital Budgets.

Vote (Amend Item) Mar-07-2019 12:01 PM

Result: Lost Majority Required - EX2.1 - Layton - motion 2b
Total members that voted Yes: 8 Members that voted Yes are Shelley Carroll, Joe Cressy, John Filion, Paula Fletcher, Mike Layton, Josh Matlow, Gord Perks, Kristyn Wong-Tam
Total members that voted No: 17 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 1 Members that were absent are Denzil Minnan-Wong

2c - Motion to Amend Item moved by Councillor Mike Layton (Lost)

That City Council increase the proposed residential property tax rate by an additional 0.842 percent that could allow for City Council to fund $25.600 million in programs, such as stopping the Toronto Transit Commission fare increase, when it considers Item EX2.5 on the 2019 Operating and Capital Budgets.

Vote (Amend Item) Mar-07-2019 11:59 AM

Result: Lost Majority Required - EX2.1 - Layton - motion 2c
Total members that voted Yes: 7 Members that voted Yes are Shelley Carroll, Joe Cressy, Paula Fletcher, Mike Layton, Josh Matlow, Gord Perks, Kristyn Wong-Tam
Total members that voted No: 18 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, John Filion, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 1 Members that were absent are Denzil Minnan-Wong

3 - Motion to Amend Item moved by Councillor Josh Matlow (Lost)

That City Council increase the proposed residential property tax rate by an additional 0.06 percent that could allow for City Council to fund $1.9255 million in programs such as Five Enhanced Youth Spaces at Parks, Forestry, and Recreation facilities; three Youth Hubs at Toronto Public Libraries; expansion of the Tenant Hotline and Outreach and Organizing programs; and the Seniors Homesharing Program when it considers Item EX2.5 on the 2019 Operating and Capital Budgets.

Vote (Amend Item) Mar-07-2019 12:00 PM

Result: Lost Majority Required - EX2.1 - Matlow - motion 3
Total members that voted Yes: 8 Members that voted Yes are Shelley Carroll, Joe Cressy, John Filion, Paula Fletcher, Mike Layton, Josh Matlow, Gord Perks, Kristyn Wong-Tam
Total members that voted No: 16 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Jennifer McKelvie, Frances Nunziata (Chair), Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 2 Members that were absent are Denzil Minnan-Wong, James Pasternak

4a - Motion to Amend Item moved by Councillor Kristyn Wong-Tam (Lost)

That City Council increase the proposed residential property tax rate by an additional 0.006 percent that could allow for City Council to fund $160,000 in programs, such as developing a Regent Park Aquatic Program Pilot in partnership with Lord Dufferin Junior and Senior Public School, Nelson Mandela Public School and local community organizations, when it considers Item EX2.5 on the 2019 Operating and Capital Budgets.

Vote (Amend Item) Mar-07-2019 12:02 PM

Result: Lost Majority Required - EX2.1 - Wong-Tam - motion 4a
Total members that voted Yes: 7 Members that voted Yes are Shelley Carroll, Joe Cressy, Paula Fletcher, Mike Layton, Josh Matlow, Gord Perks, Kristyn Wong-Tam
Total members that voted No: 18 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, John Filion, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 1 Members that were absent are Denzil Minnan-Wong

4b - Motion to Amend Item moved by Councillor Kristyn Wong-Tam (Lost)

That City Council increase the proposed residential property tax rate by an additional 0.002 percent that could allow for City Council to fund $70,000 in sponsorships, such as the expansion of the Rent Bank and Trusteeship Programs administered by Neighbourhood Information Post, when it considers Item EX2.5 on the 2019 Operating and Capital Budgets.

Vote (Amend Item) Mar-07-2019 12:02 PM

Result: Lost Majority Required - EX2.1 - Wong-Tam - motion 4b
Total members that voted Yes: 8 Members that voted Yes are Shelley Carroll, Joe Cressy, John Filion, Paula Fletcher, Mike Layton, Josh Matlow, Gord Perks, Kristyn Wong-Tam
Total members that voted No: 17 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 1 Members that were absent are Denzil Minnan-Wong

Motion to Adopt Item (Carried)

Vote (Adopt Item) Mar-07-2019 12:03 PM

Result: Carried Majority Required - EX2.1 - Adopt the Item
Total members that voted Yes: 21 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that voted No: 4 Members that voted No are Shelley Carroll, Paula Fletcher, Gord Perks, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are Denzil Minnan-Wong

Rulings (City Council)

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled that Councillor Colle should only ask questions on the tax rate and that the Councillor can ask other questions on the budget when we get to that Item.

Ruling by Speaker Frances Nunziata
Speaker Nunziata made the following ruling:

Members, before we vote on these motions, I want remind you that this item concerns deciding the tax rates to be levied. Several of the motions mention examples of things that could be funded by the proposed increases to taxes. While these lists are interesting, they are not the matters before us on this item. Should any of the motions containing lists of suggested programs pass, that does not mean those programs are funded. I am going to treat these motions as a series of proposals to increase the tax rate. We will vote on them from largest to smallest. If one of them should carry, the others will be redundant.

Declared Interests (City Council)

The following member(s) declared an interest:

Councillor James Pasternak - in motion 3 as it pertains to the Toronto Public Library, as his spouse has left the library and is on leave, is technically an employee of the Toronto Public Library.
Written Declaration: https://secure.toronto.ca/council/declared-interest-file.do?id=8435

1a - Impact of the 2018 Creative Co-Location Facilities Property Tax Subclass and 2019 Implementation

Background Information (Committee)
(February 19, 2019) Report from the General Manager, Economic Development and Culture on Impact of the 2018 Creative Co-Location Facilities Property Tax Subclass and 2019 Implementation
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-129974.pdf
Attachment 1 - Detailed Eligibility Criteria for Inclusion in Creative Co-Location Facilities Property Tax Subclass
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-130127.pdf

EX2.1 - 2019 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.  In respect of calculations to establish 2019 tax rates and tax ratios, City Council elect the following in order to determine the notional tax rates to raise the previous year's levies:

 

a.  subject to receiving the necessary amendment to Ontario Regulation 121/07 for the 2019 taxation year, to exclude the assessment of a property in a property class from the calculation of the total assessment of the properties in that property class if the current value of the property has increased by 100 percent or more or decreased by 25 percent or more, in accordance with subsection 2.2(4), paragraph 2 of Ontario Regulation 121/07; and

 

b.  to adjust the total assessment for property in a property class so that the assessment excludes changes to the tax roll for the previous year resulting from eligible assessment-related losses from prior years, in accordance with an election under subsection 19 (4) of Ontario Regulation 121/07 to make subsections 19 (4.2), (4.3) and (4.4) apply.

 

2.  City Council adopt the 2019 tax ratios shown in Column II for each of the property classes set out below in Column I:

 

Column I

Column II

(to be adopted)

Column III

(for information only)

Property Class

2019 Recommended Tax Ratios (before Graduated Tax Rates)

2019 Ending Ratios (after Graduated Tax Rates and Levy Increases)

Residential

1.000000

1.000000

Multi-Residential

2.344422

2.275033

New Multi-Residential

1.000000

1.000000

Commercial General

2.780000

2.738860

Residual Commercial - Band 1

2.665000

2.432925

Residual Commercial - Band 2

2.665000

2.738860

Industrial

2.763161

2.708639

Pipeline

1.923564

1.923564

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

3.  Subject to receiving the necessary amendment to Ontario Regulation 121/07 for the 2019 taxation year, City Council elect to raise the tax rates on the restricted property classes as follows:

 

a.  on the Commercial Property Classes, by one-half of the percentage tax rate increase on the unrestricted property classes (residential, new multi-residential, pipelines, farmlands, and managed forests);

 

b.  on the Industrial Property Classes, by one-third of the percentage tax rate increase on the unrestricted property classes (residential, new multi-residential, pipelines, farmlands, and managed forests); and

 

c.  on the Multi-Residential Property Classes, no tax increase.

 

4.  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 2019 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 1

Less than or equal to $1,000,000

0.888298

Residual Commercial

Highest Band 2

Greater than $1,000,000

1.000000

 

5. City Council adopt:         

 

a.  the tax rates set out below in Column V, which rates will raise a local municipal general tax levy for 2019 of $4,383,289,139 inclusive of a 2.55 percent residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, a 1.275 percent commercial tax rate increase, and a 0.85 percent industrial tax rate increase; and

 

b.  the additional tax rates set out below in Column VI, which rates will raise an additional special general tax levy of $15,209,430 dedicated for priority transit and housing capital projects (the "City's Building Fund levy"), in accordance with Part 6 of City Council's decision on Item EX22.2 headed "2017 Capital and Operating Budgets".

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Column VII

Property Class

2019 Tax Rate for General Local Municipal Levy before Graduated Tax Rates

2019 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2019 Additional Tax Rate to Fund Budgetary Levy Increase

2019 Municipal Tax Rate

2019 Additional Tax Rate to Fund City Building

2019 Municipal Tax Rate Inclusive of City Building Fund Rate

 

 

 

 

(excluding Charity rebates)

 

(excluding Charity rebates)

 

 

 

 

(Column III+IV)

 

(Column V+VI)

Residential

0.440339%

0.440339%

0.011229%

0.451568%

0.002202%

0.453770%

Multi-Residential

1.032342%

1.032342%

0.000000%

1.032342%

0.000000%

1.032342%

New Multi-Residential

0.440339%

0.440339%

0.011229%

0.451568%

0.002202%

0.453770%

Commercial

General

1.224144%

1.224144%

0.015608%

1.239752%

0.003060%

1.242812%

Residual Commercial – Band 1

1.173505%

1.087405%

0.013864%

1.101269%

0.002719%

1.103988%

Residual Commercial – Band 2

1.173505%

1.224144%

0.015608%

1.239752%

0.003060%

1.242812%

Industrial

1.216729%

1.216729%

0.010342%

1.227071%

0.002028%

1.229099%

Pipelines

0.847021%

0.847021%

0.021599%

0.868620%

0.004235%

0.872855%

Farmlands

0.110085%

0.110085%

0.002807%

0.112892%

0.000550%

0.113442%

Managed Forests

0.110085%

0.110085%

0.002807%

0.112892%

0.000550%

0.113442%

 

6.  City Council determine that the 2019 Non-Program Tax Account for Rebates to Charities in the Commercial class be set in the amount of $4,615,957 to fund the mandatory 2019 property tax rebates to registered charities in the commercial property classes, which provision is to be funded, for a net impact on the 2019 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 $4,615,957 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2019.

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.003939%

Residual Commercial

Lowest Band

0.003499%

Residual Commercial

Highest Band

0.003939%

 

7.  The final Industrial Property Class tax rate be reduced by subtracting 0.011266 percent from the final tax rate, in order to reduce the municipal taxes on the industrial tax class by $943,000 - being one half of the estimated municipal portion of industrial taxes that were rebated under the vacant unit rebate program for 2017, as directed by City Council at its meeting on May 24, 2017, and the Budget Committee 2019 recommended Non-Program Operating Budget be reduced by the same amount.

 

8.  City Council allocate $935,000, equivalent to 15 percent of all incremental municipal tax revenue arising from commercial and residential assessment growth in the Tax Increment Financing Zones for 2019, net of any Imagination, Manufacturing, Innovation and Technology Grants attributable to this assessment growth, to the SmartTrack Funding Reserve Fund XR1731, in accordance with Part 19e of City Council's decision on Item EX33.1, headed "Implementation of the SmartTrack Stations Program and the Metrolinx Regional Express Rail Program. 

   

9.  City Council direct the Chief Financial Officer and Treasurer to report in April to Executive Committee, or directly to Council or a special meeting of Council if necessary, on the 2019 tax rates for school purposes, and the 2019 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 2019 'clawback' rates).

 

10.  City Council adopt the property tax capping policy, for the 2019 taxation year, to limit tax increases (for the 2019 taxation year) for the commercial, industrial, and multi-residential property classes by capping taxes at 10 percent of the preceding year's annualized taxes, through the adoption of subsection 292(1), paragraph 1, of the City of Toronto Act, 2006.

 

11.  City Council amend the Municipal Code Chapter 767, Taxation, Property Tax (Section 767-11B) to change the definition of a "low-income disabled person", to add a further category of disability support by adding the words: "(6)  Such other financial support(s) or circumstances in respect of a person's disability, that, in the opinion of the Treasurer, establish that a person is a low-income disabled person for the purposes of this section"; and that the necessary corresponding amendments also be made to the definition of "low-income disabled person" in Municipal Code Chapter 849, Water and Sewage Services and Utility Bill (Section 849-14.1) to reflect this change.

 

12.  City Council determine that:

 

a.  the instalment dates for the 2019 final tax bills be set as follows:

 

i.  the regular instalment dates be July 2, August 1, and September 3, 2019;

 

ii.  for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 15, September 16, October 15, November 15 and December 16, 2019; and

 

iii.  for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2019; and

 

b.  the collection of taxes for 2019, other than those levied under By-law 2-2019 (the interim levy by-law) be authorized.

 

13.   City Council adopt:

 

a.  the tax rate for municipal purposes for the Creative Co-location Facility subclass of the Commercial and Commercial Residual Property classes be set at a 50 percent reduction of the Commercial and Commercial Residual Property class tax rate for 2019 and all following years; and

 

b.  the tax rate for municipal purposes for the Creative Co-location Facility subclass of the Industrial Property class be set at a 50 percent reduction of the Industrial Property class tax rate for 2019 and all following years.

 

14.  City Council approve revised eligibility criteria for the Creative Co-Location Facilities Property Tax Subclass by creating a new membership-model category of eligible properties, outlined in Attachment 1 to the report (February 19, 2019) from the General Manager, Economic Development and Culture.

 

15. City Council authorize the appropriate officials to take the necessary actions to give effect to City Council's decision and authorize the introduction of the necessary bills in Council.

Origin

(February 21, 2019) Report from the Chief Financial Officer and Treasurer

Summary

This report recommends the 2019 municipal tax ratios and tax rates arising from the concurrent adoption of the City of Toronto's 2019 tax supported Operating and Capital Budgets.

 

The 2019 tax rate increases arising from the 2019 tax supported Operating and Capital Budgets and the tax policy decisions recommended by the Budget Committee are as follows:

 

Table 1 - 2019 Recommended Property Tax Rate Increases

 

Property Class

2019 Tax Rate Increase for Operating Budget

2019 City Building Fund Tax Rate Increase

2019 Total Tax Rate Increase

Residential, New Multi-Residential, Farmland, Managed Forest, and Pipelines

2.55%

0.50%

3.05%

Multi- Residential

0.0%

0.0%

0.0%

Commercial

1.28%

0.25%

1.53%

Industrial

0.85%

0.17%

1.02%

Total Tax Rate Increase

1.80%

0.35%

2.15%

 

Background Information

(February 21, 2019) Report from the Chief Financial Officer and Treasurer on 2019 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-129497.pdf

Motions

1 - Motion to Amend Item (Additional) moved by Mayor John Tory (Carried)

1a - Impact of the 2018 Creative Co-Location Facilities Property Tax Subclass and 2019 Implementation

 

That City Council approve revised eligibility criteria for the Creative Co-Location Facilities Property Tax Subclass by creating a new membership-model category of eligible properties, outlined in Attachment 1 to the report (February 19, 2019) from the General Manager, Economic Development and Culture.


2 - Motion to Adopt Item as Amended moved by Mayor John Tory (Carried)

1a - Impact of the 2018 Creative Co-Location Facilities Property Tax Subclass and 2019 Implementation

Origin
(February 19, 2019) Report from the General Manager, Economic Development and Culture
Summary

The Creative Co-Location Facilities Property Tax Subclass (the "Subclass") was established by City Council and the Province of Ontario in 2018 to support the affordability and sustainability of cultural and creative spaces in Toronto. The Subclass provides property tax relief to qualifying properties housing a cluster of creative enterprises, and incentivizes the provision of below market rent and the retention of affordable spaces for the arts and culture sector.

 

The purpose of this report is to respond to direction from Council to review the impact of the Subclass within twelve months of its implementation, and recommend amendments to the eligibility criteria. In 2018, six properties representing 238,397 square feet of creative space were designated as qualifying properties under the Subclass, resulting in a total property tax savings of $378,995, of which $201,453 is municipal taxes and $117,542 is education taxes. There were no requests for appeals.  

 

This report recommends that City Council authorize the creation of a second category of eligible properties within the Subclass that will include membership-based co-working facilities for creative enterprises, operated by a non-profit organization. No changes are proposed to the existing criteria for tenant-based properties.

 

Membership-based co-working facilities act as incubators for start-ups and emerging creative enterprises. Under this operating model, creative enterprises purchase a membership which provides them with access to shared working space, equipment, technology, and professional development services such as training, workshops and access to a network of peers. These services are offered at discounted rates, and would otherwise be a cost barrier to many emerging creative businesses and professionals. As shared workspaces become more and more common, limiting access to this subclass to not-for-profit operators will ensure there is no unintended impact to City revenues from membership-based worksites.

Background Information
(February 19, 2019) Report from the General Manager, Economic Development and Culture on Impact of the 2018 Creative Co-Location Facilities Property Tax Subclass and 2019 Implementation
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-129974.pdf
Attachment 1 - Detailed Eligibility Criteria for Inclusion in Creative Co-Location Facilities Property Tax Subclass
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-130127.pdf
Source: Toronto City Clerk at www.toronto.ca/council