Item - 2019.EX7.20
Tracking Status
- City Council adopted this item on July 16, 17 and 18, 2019 with amendments.
- This item was considered by Executive Committee on July 4, 2019 and was adopted with amendments. It will be considered by City Council on July 16, 17 and 18, 2019.
- See also By-law 1146-2019
EX7.20 - 2019 Levy on Railway Roadways and Rights-of-Way and on Power Utility Transmission and Distribution Corridors
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on July 16, 17 and 18, 2019 adopted the following:
1. City Council authorize the levy and collection of taxes for the 2019 taxation year on railway roadways and rights-of-way and on land used as transmission or distribution corridors owned by power utilities, in accordance with subsection 280 (1) of the City of Toronto Act, 2006 and subsection 257.7 (1) of the Education Act.
2. City Council receive the Acreage and Tonnage Taxation Systems sections of the report (June 19, 2019) from the Controller for information.
3. City Council request the Chief Financial Officer and Treasurer to include the following information in future annual reports:
a. the potential additional income the City of Toronto could receive if the levy was based on a rate per tonnage as opposed to a rate per acreage;
b. a review of how the Provinces of Alberta, Manitoba, Saskatchewan and Quebec tax railway right-of-way properties within their boundaries;
c. a summary of what reserves the Cities of Calgary, Regina, Winnipeg and Montreal receive through railway taxation; and
d. following consultation with the Railway Association of Canada on what their membership's current practice is in the Canadian Western Provinces in terms of self-reporting their traffic, information on how a similar practice could be adopted in the Province of Ontario if a tonnage-based system similar to the Western Provinces was adopted.
4. City Council forward the Item to the Ontario Good Roads Association, the Association of Municipalities of Ontario and the Federation of Canadian Municipalities for their information.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-135049.pdf
Motions (City Council)
That City Council forward its decision and the report (June 19, 2019) from the Controller to the Ontario Good Roads Association, the Association of Municipalities of Ontario and the Federation of Canadian Municipalities for their information.
EX7.20 - 2019 Levy on Railway Roadways and Rights-of-Way and on Power Utility Transmission and Distribution Corridors
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council authorize the levy and collection of taxes for the 2019 taxation year on railway roadways and rights-of-way and on land used as transmission or distribution corridors owned by power utilities, in accordance with subsection 280 (1) of the City of Toronto Act, 2006 and subsection 257.7 (1) of the Education Act.
2. City Council receive the Acreage and Tonnage Taxation Systems sections of the report (June 19, 2019) from the Controller for information.
3. City Council request the Chief Financial Officer and Treasurer to include the following information in future annual reports:
a. the potential additional income the City of Toronto could receive if the levy was based on a rate per tonnage as opposed to a rate per acreage;
b. a review of how the Provinces of Alberta, Manitoba, Saskatchewan and Quebec tax railway right-of-way properties within their boundaries;
c. a summary of what reserves the Cities of Calgary, Regina, Winnipeg and Montreal receive through railway taxation; and
d. following consultation with the Railway Association of Canada on what their membership's current practice is in the Canadian Western Provinces in terms of self-reporting their traffic, information on how a similar practice could be adopted in the Province of Ontario if a tonnage-based system similar to the Western Provinces was adopted.
Origin
Summary
This report seeks Council authority for the introduction of the by-law necessary to levy and collect taxes for the 2019 taxation year on railway roadways and rights-of-way and on land used as transmission or distribution corridors owned by power utilities, totalling approximately $7.1 million in taxation revenue, of which the municipal share is $6.6 million and the provincial education share is $0.5 million.
The 2019 levy total remains unchanged from the 2018 levy total of $7.1 million (with a $6.6 million municipal share and a provincial education share of $0.5 million). In May of 2019, the Ministry of Finance announced that, for the 2019 taxation year, the property tax rates for railway rights-of-way will remain unchanged from 2018 levels.
This report also provides information related to the property taxation of railway rights-of-way using the acreage and tonnage systems.
Background Information
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-135049.pdf
Motions
That:
1. City Council request the Chief Financial Officer and Treasurer to include the following information in future annual reports:
a. the potential additional income the City of Toronto could receive if the levy was based on a rate per tonnage as opposed to a rate per acreage;
b. a review of how the Provinces of Alberta, Manitoba, Saskatchewan and Quebec tax railway right-of-way properties within their boundaries;
c. a summary of what reserves the Cities of Calgary, Regina, Winnipeg and Montreal receive through railway taxation; and
d. following consultation with the Railway Association of Canada on what their membership's current practice is in the Canadian Western Provinces in terms of self-reporting their traffic, information on how a similar practice could be adopted in the Province of Ontario if a tonnage-based system similar to the Western Provinces was adopted.