Item - 2021.EX21.1

Tracking Status

  • City Council adopted this item on February 18, 2021 with amendments.
  • This item was considered by the Executive Committee on February 11, 2021 and adopted without amendment. It will be considered by City Council on February 18, 2021.
  • See also By-laws 78-2021, 79-2021

EX21.1 - 2021 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on February 18, 2021, adopted the following:

 

1. In respect of calculations to establish 2021 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. 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 O. Reg. 121/07 to make subsections 19 (4.2), (4.3) and (4.4) apply.

 

2. City Council adopt the 2021 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

2021 Recommended Tax Ratios (before Graduated Tax Rates)

2021 Ending Ratios (after Graduated Tax Rates and Levy Increases)

Residential

1.000000

1.000000

Multi-Residential

2.098351

2.053182

New Multi-Residential

1.000000

1.000000

Commercial General

2.640000

2.611585

Residual Commercial –Band 1

2.574300

2.431112

Residual Commercial –Band 2

2.574300

2.611585

Industrial

2.623305

2.585658

Pipeline

1.923560

1.923561

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

3. Subject to receiving the necessary amendment to O.Reg. 121/07 for the 2021 taxation year, City Council elect to raise the tax rates as follows:

 

a. on the restricted property classes:

 

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

 

ii. on the Multi-Residential Property Classes, no tax increase; and

 

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

 

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 2021 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

0.930895

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 2021 of $4,621,345,185 inclusive of a 0.7 percent residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, a 0.35 percent commercial tax rate increase, and a 0.23 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 $49,826,401 dedicated for priority transit and housing capital projects (the "City’s Building Fund levy"), in accordance with Council adopted Recommendation 6 of Executive Committee Report EX22.2 (February 15, 2017) and Item EX11.26 (December 17, 2019):

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Column VII

Property Class

2021 Tax Rate for General Local Municipal Levy before Graduated Tax Rates

2021 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2021 Additional Tax Rate to Fund Budgetary Levy Increase

2021 Municipal Tax Rate

2021 Additional Tax Rate to Fund City Building

2021 Municipal Tax Rate Inclusive of City Building Fund Rate

(excluding Charity rebates)

(excluding Charity rebates)

       

(Column III+IV)

 

(Column V+VI)

Residential

0.448154 percent

0.448154 percent

0.003137 percent

0.451291 percent

0.006722 percent

0.458013 percent

Multi-Residential

0.940384 percent

0.940384 percent

0.000000 percent

0.940384 percent

0.000000 percent

0.940384 percent

New Multi-Residential

0.448154 percent

0.448154 percent

0.003137 percent

0.451291 percent

0.006722 percent

0.458013 percent

Commercial

General

1.183126 percent

1.183126 percent

0.004141 percent

1.187267 percent

0.008873 percent

1.196140 percent

Residual Commercial – Band 1

1.153682 percent

1.101366 percent

0.003855 percent

1.105221 percent

0.008260 percent

1.113481 percent

Residual Commercial – Band 2

1.153682 percent

1.183126 percent

0.004141 percent

1.187267 percent

0.008873 percent

1.196140 percent

Industrial

1.175644 percent

1.175644 percent

0.002743 percent

1.178387 percent

0.005878 percent

1.184265 percent

Pipelines

0.862051 percent

0.862051 percent

0.006034 percent

0.868085 percent

0.012931 percent

0.881016 percent

Farmlands

0.112038 percent

0.112038 percent

0.000784 percent

0.112823 percent

0.001681 percent

0.114504 percent

Managed Forests

0.112038 percent

0.112038 percent

0.000784 percent

0.112823 percent

0.001681 percent

0.114504 percent

 

6. City Council determine that the 2021 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $5,099,803 to fund the mandatory 2021 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 2021 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 $5,007,559 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2021:

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.004046 percent

 

Residual Commercial

Lowest Band

 

0.003767 percent

 

Residual Commercial

Highest Band

0.004046 percent

 

 

b. an additional tax rate of 0.001081 percent be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $92,244 to fund the total estimated rebates to registered charities for properties in the industrial class in 2021.

 

7. City Council allocate $2,725,395 to the SmartTrack Funding Reserve Fund XR173, in accordance with Item 2018.EX33.1, Part 19.e. (April 24, 25, 26, and 27 2018); this figure is composed of the accumulated base of $1,813,702  plus $911,693, equivalent to 15 percent of all incremental municipal tax revenue arising from commercial and residential assessment growth in the Tax Increment Financing Zones for 2020, net of any Imagination, Manufacturing, Innovation and Technology (IMIT) Grants attributable to this assessment growth.

 

8. City Council direct the Chief Financial Officer and Treasurer to report to Executive Committee, or directly to City Council or a special meeting of City Council if necessary, on the 2021 tax rates for school purposes, and the 2021 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 2021 ‘clawback’ rates).

 

9. City Council determine that:

 

a. the instalment dates for the 2021 final tax bills be set as follows:

 

i. the regular instalment dates be July 2, August 3, and September 1 of 2021;

 

ii. for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 16, September 15, October 15, November 15 and December 15 of 2021; and

 

iii. for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2021; and

 

b. the collection of taxes for 2021, other than those levied under By-law No. 1038-2020 (the interim levy by-law) be authorized.

 

10. City Council adopt the application of the Creative Co-location Facilities subclasses for the Commercial, Commercial Residual and Industrial property classes for 2021.

 

11. City Council temporarily suspend the following eligibility criteria requirements for the Creative Co-Location Facilities Subclasses in the Toronto Municipal Code, Chapter 767, Taxation, Property Tax, in 2020 and 2021, in order to assist creative enterprises to remain in the subclass while the COVID-19 pandemic and public health emergency orders are obstructing them from meeting these criteria:

 

a. for the Tenant-Based Model:

 

i. that a minimum of 51 percent of the tenants of the property be tenant creative enterprises;

 

ii. that tenant creative enterprises must occupy at least 51 percent of the property's net rentable area; and

 

iii. that a minimum of 12 cultural programs be offered free of charge to the public at the property over a minimum of 10 months in each calendar year; and

 

b. for the Membership-Based Model:

 

i. that the operator must provide members access to and use of the following shared resources for a minimum of 8 hours per day, 5 days per week:

 

a. work space consisting of office or production space;

 

b. meeting or conference space;

 

c. high-speed wireless internet access that meets minimum standards established by the Canadian Radio-Television and Telecommunication (CRTC); and

 

d. office equipment;

 

ii. that a minimum of 25 professional development programs, services or events must be offered to members, in the calendar year.

 

12. City Council amend the eligibility criteria requirements for the Creative Co-Location Facilities Subclasses in the Toronto Municipal Code, Chapter 767, Taxation, Property Tax, in 2021, to require that property owners pass on tax savings resulting from inclusion in the subclasses to their tenant operators of the live music venue within 12 months of each year's application deadline so as to remain eligible for future years. 

 

13.  City Council direct the City Manager and the Chief Financial Officer and Treasurer to report back to the July 14 and 15, 2021 meeting of City Council on an update of the information included in the Long-Term Financial Direction, which shall include:

 

a.  a comparison of residential commercial, and industrial property taxes and water and solid waste rates with the Greater Toronto Area and other large Canadian municipalities;

 

b.  revised estimates on revenue from all revenue tools currently available to the City for implementation, including cost estimates for implementation and the policy implications of each revenue tool; 

 

c.  an updated estimate of the revenue that could accrue to the City through a 1 percent municipal sales tax, including all online consumer activity; and

 

d.  a study on an increase of the Municipal Land Transfer Tax for homes valued at or over $2 million, $3 million and $4 million, respectively, including:

 

i.  the aggregate Municipal Land Transfer Tax and provincial Land Transfer Tax paid on homes of over $2 million across Canada’s largest municipalities, and how the land transfer tax for Toronto properties compares to those other municipalities;

 

ii.  the number of homes in Toronto estimated to be valued at-or-over $2 million, $3 million and $4 million, respectively, in 2026, and the expected breakdown of those homes by Ward;

 

iii.  the potential impacts that a Municipal Land Transfer Tax increase may have on the housing market, including:

 

1.  the impact on Toronto's real estate market versus neighbouring Greater Toronto Area municipalities; and

 

2.  the impact on the Toronto's housing supply and affordability, and in particular, on homes valued at under $2 million; and

 

iv.  the potential impacts that a Municipal Land Transfer Tax increase may have on Toronto's post-pandemic economic recovery.

 

14. 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 City Council.

Public Notice Given

Background Information (Committee)

(February 4, 2021) Decision Letter from the Budget Committee on 2021 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-163659.pdf
(January 25, 2021) Report from the Chief Financial Officer and Treasurer on 2021 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-163491.pdf

Communications (Committee)

(February 7, 2021) E-mail from Ela Nolast (EX.Supp)
(February 7, 2021) E-mail from Carol Riley (EX.Supp)
(February 7, 2021) E-mail from Heather Jewell (EX.Supp)
(February 6, 2021) E-mail from Dana A (EX.Supp)
(February 6, 2021) E-mail from Melanie Lanno (EX.Supp)
(February 5, 2021) E-mail from Vijaya Jerome (EX.Supp)
(February 5, 2021) E-mail from Sam Martini (EX.Supp)
(February 5, 2021) E-mail from Patrick Smith and Susan Smith (EX.Supp)
(February 5, 2021) E-mail from Paul Hardie (EX.Supp)
(February 10, 2021) E-mail from Hamish Wilson (EX.Supp)
(February 9, 2021) E-mail from Sharon Griffin (EX.Supp)
(February 9, 2021) E-mail from Sharon Griffin (EX.Supp)
(February 9, 2021) E-mail from Hyim Bessin (EX.Supp)

Communications (City Council)

(February 13, 2021) Letter from Jeff Mount (CC.Supp)
(February 12, 2021) E-mail from John Stavrou (CC.Supp)
(February 16, 2021) E-mail from Kline Holland (CC.Supp)

Motions (City Council)

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

That City Council refer the item back to the City Manager and request the City Manager to report directly to City Council as soon as possible with tax-rates and ratios which support the following principles:

 

a. A whole-of-government approach as described by the City Manager in EX17.1 - Towards Recovery and Building a Renewed Toronto, including necessary Federal and Provincial funding and / or revenue tools towards achieving the following outcomes:

 

i.  Universal access to licensed, affordable quality childcare in 2021; and

 

ii.  An emergency housing program that provides housing and the necessary social supports to every person who is homeless by the end of 2021; and

 

b.  A transit-vehicle purchasing and state-of-good repair program as described in the Fleet Procurement Strategy and Plan of October 2020 and the Capital Investment Plan of January 2019.

Vote (Refer Item) Feb-18-2021 10:40 AM

Result: Lost Majority Required - EX21.1 - Perks - motion 1 - Refer the Item
Total members that voted Yes: 6 Members that voted Yes are Joe Cressy, Paula Fletcher, Mike Layton, Josh Matlow, 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, Cynthia Lai, Nick Mantas, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

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

That City Council direct the City Manager and the Chief Financial Officer and Treasurer to report back to the July 14 and 15, 2021 City Council meeting on an update of the information included in the Long-Term Financial Direction, which shall include:

 

a.  a comparison of residential commercial, and industrial property taxes and water and solid waste rates with GTA and other large Canadian municipalities;

 

b.  revised estimates on revenue from all revenue tools currently available to the City for implementation, including cost estimates for implementation, and the policy implications of each revenue tool; 

 

c.  an updated estimate of the revenue that could accrue to the City through a 1% municipal sales tax, including all online consumer activity; and

 

d.  a study on an increase of the Municipal Land Transfer Tax for homes valued at or over $2 million, $3 million, and $4 million, respectively, including:

 

i.  the aggregate Municipal Land Transfer Tax and provincial Land Transfer Tax paid on homes of over $2 million across Canada’s largest municipalities, and how the land transfer tax for Toronto properties compares to those other municipalities;

 

ii.  the number of homes in Toronto estimated to be valued at-or-over $2 million, $3 million, and $4 million, respectively, in 2026, and the expected breakdown of those homes by ward;

 

iii.  the potential impacts that a Municipal Land Transfer Tax increase may have on the housing market, including:

 

1.  the impact on Toronto's real estate market versus neighbouring GTA municipalities; and

 

2.  the impact on the Toronto's housing supply and affordability, and in particular, on homes valued at under $2 million; and

 

iv.  the potential impacts that a Municipal Land Transfer Tax increase may have on Toronto's post-pandemic economic recovery.

Vote (Amend Item (Additional)) Feb-18-2021 11:46 AM

Result: Carried Majority Required - EX21.1 - Carroll - motion 2 Part d only
Total members that voted Yes: 22 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 4 Members that voted No are Stephen Holyday, Denzil Minnan-Wong, James Pasternak, Jaye Robinson
Total members that were Absent: 0 Members that were absent are

Vote (Amend Item (Additional)) Feb-18-2021 11:48 AM

Result: Carried Majority Required - EX21.1 - Carroll - the balance of motion 2
Total members that voted Yes: 24 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Stephen Holyday, Denzil Minnan-Wong
Total members that were Absent: 0 Members that were absent are

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Feb-18-2021 11:49 AM

Result: Carried Majority Required - EX21.1 - Adopt the Item as amended
Total members that voted Yes: 23 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Stephen Holyday, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory
Total members that voted No: 3 Members that voted No are Nick Mantas, Gord Perks, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

EX21.1 - 2021 Property Tax Rates and Related Matters

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Public Notice Given

Committee Recommendations

The Executive Committee recommends that:

 

1. In respect of calculations to establish 2021 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. 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 O. Reg. 121/07 to make subsections 19 (4.2), (4.3) and (4.4) apply.

 

2. City Council adopt the 2021 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

2021 Recommended Tax Ratios (before Graduated Tax Rates)

2021 Ending Ratios (after Graduated Tax Rates and Levy Increases)

Residential

1.000000

1.000000

Multi-Residential

2.098351

2.053182

New Multi-Residential

1.000000

1.000000

Commercial General

2.640000

2.611585

Residual Commercial –Band 1

2.574300

2.431112

Residual Commercial –Band 2

2.574300

2.611585

Industrial

2.623305

2.585658

Pipeline

1.923560

1.923561

Farmlands

0.250000

0.250000

Managed Forests

0.250000

0.250000

 

3. Subject to receiving the necessary amendment to O.Reg. 121/07 for the 2021 taxation year, City Council elect to raise the tax rates as follows:

 

a. on the restricted property classes:

 

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

 

ii. on the Multi-Residential Property Classes, no tax increase; and

 

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

 

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 2021 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

0.930895

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 2021 of $4,621,345,185 inclusive of a 0.7 percent residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, a 0.35 percent commercial tax rate increase, and a 0.23 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 $49,826,401 dedicated for priority transit and housing capital projects (the "City’s Building Fund levy"), in accordance with Council adopted Recommendation 6 of Executive Committee Report EX22.2 (February 15, 2017) and Item EX11.26 (December 17, 2019):

 

Column I

Column II

Column III

Column IV

Column V

Column VI

Column VII

Property Class

2021 Tax Rate for General Local Municipal Levy before Graduated Tax Rates

2021 Tax Rate for General Local Municipal Levy After Graduated Tax Rates

2021 Additional Tax Rate to Fund Budgetary Levy Increase

2021 Municipal Tax Rate

2021 Additional Tax Rate to Fund City Building

2021 Municipal Tax Rate Inclusive of City Building Fund Rate

(excluding Charity rebates)

(excluding Charity rebates)

       

(Column III+IV)

 

(Column V+VI)

Residential

0.448154%

0.448154%

0.003137%

0.451291%

0.006722%

0.458013%

Multi-Residential

0.940384%

0.940384%

0.000000%

0.940384%

0.000000%

0.940384%

New Multi-Residential

0.448154%

0.448154%

0.003137%

0.451291%

0.006722%

0.458013%

Commercial

General

1.183126%

1.183126%

0.004141%

1.187267%

0.008873%

1.196140%

Residual Commercial – Band 1

1.153682%

1.101366%

0.003855%

1.105221%

0.008260%

1.113481%

Residual Commercial – Band 2

1.153682%

1.183126%

0.004141%

1.187267%

0.008873%

1.196140%

Industrial

1.175644%

1.175644%

0.002743%

1.178387%

0.005878%

1.184265%

Pipelines

0.862051%

0.862051%

0.006034%

0.868085%

0.012931%

0.881016%

Farmlands

0.112038%

0.112038%

0.000784%

0.112823%

0.001681%

0.114504%

Managed Forests

0.112038%

0.112038%

0.000784%

0.112823%

0.001681%

0.114504%

 

6. City Council determine that the 2021 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $5,099,803 to fund the mandatory 2021 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 2021 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 $5,007,559 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2021:

 

Column I

Column II

Column III

Commercial Property Classes

Bands

Additional Tax Rate to Fund Rebates to Eligible Charities

Commercial General

Unbanded

0.004046%

 

Residual Commercial

Lowest Band

 

0.003767%

 

Residual Commercial

Highest Band

0.004046%

 

 

b. an additional tax rate of 0.001081 percent be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $92,244 to fund the total estimated rebates to registered charities for properties in the industrial class in 2021.

 

7. City Council allocate $2,725,395 to the SmartTrack Funding Reserve Fund XR173, in accordance with Item 2018.EX33.1, Part 19.e. (April 24, 25, 26, and 27 2018); this figure is composed of the accumulated base of $1,813,702  plus $911,693, equivalent to 15 percent of all incremental municipal tax revenue arising from commercial and residential assessment growth in the Tax Increment Financing Zones for 2020, net of any Imagination, Manufacturing, Innovation and Technology (IMIT) Grants attributable to this assessment growth.

 

8. City Council direct the Chief Financial Officer and Treasurer to report to Executive Committee, or directly to City Council or a special meeting of City Council if necessary, on the 2021 tax rates for school purposes, and the 2021 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 2021 ‘clawback’ rates).

 

9. City Council determine that:

 

a. the instalment dates for the 2021 final tax bills be set as follows:

 

i. the regular instalment dates be July 2, August 3, and September 1 of 2021;

 

ii. for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 16, September 15, October 15, November 15 and December 15 of 2021; and

 

iii. for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2021; and

 

b. the collection of taxes for 2021, other than those levied under By-law No. 1038-2020 (the interim levy by-law) be authorized.

 

10. City Council adopt the application of the Creative Co-location Facilities subclasses for the Commercial, Commercial Residual and Industrial property classes for 2021.

 

11. City Council temporarily suspend the following eligibility criteria requirements for the Creative Co-Location Facilities Subclasses in the Toronto Municipal Code, Chapter 767, Taxation, Property Tax, in 2020 and 2021, in order to assist creative enterprises to remain in the subclass while the COVID-19 pandemic and public health emergency orders are obstructing them from meeting these criteria:

 

a. for the Tenant-Based Model:

 

i. that a minimum of 51 percent of the tenants of the property be tenant creative enterprises;

 

ii. that tenant creative enterprises must occupy at least 51 percent of the property's net rentable area; and

 

iii. that a minimum of 12 cultural programs be offered free of charge to the public at the property over a minimum of 10 months in each calendar year; and

 

b. for the Membership-Based Model:

 

i. that the operator must provide members access to and use of the following shared resources for a minimum of 8 hours per day, 5 days per week:

 

a. work space consisting of office or production space;

 

b. meeting or conference space;

 

c. high-speed wireless internet access that meets minimum standards established by the Canadian Radio-Television and Telecommunication (CRTC); and

 

d. office equipment;

 

ii. that a minimum of 25 professional development programs, services or events must be offered to members, in the calendar year.

 

12. City Council amend the eligibility criteria requirements for the Creative Co-Location Facilities Subclasses in the Toronto Municipal Code, Chapter 767, Taxation, Property Tax, in 2021, to require that property owners pass on tax savings resulting from inclusion in the subclasses to their tenant operators of the live music venue within 12 months of each year's application deadline so as to remain eligible for future years. 

 

13. 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 4, 2021) Letter from the Budget Committee

Summary

At its meeting of February 4, 2021, the Budget Committee adopted Item BU30.1 headed "2021 Property Tax Rates and Related Matters" and made recommendations to the Executive Committee.

 

This report recommends the 2021 municipal tax ratios and tax rates arising from the concurrent adoption of the City of Toronto's 2021 tax supported Operating and Capital Budgets.

 

The 2021 tax rate increases arising from the 2021 tax supported Operating and Capital Budgets and the tax policy decisions recommended by the Budget Committee are as follows:

 

Table 1 - 2021 Recommended Property Tax Rate Increases

Property Class

2021 Tax Rate Increase for Operating Budget

2021 City Building Fund Tax Rate Increase

2021 Total Tax Rate Increase

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

0.70%

1.50%

2.20%

Multi- Residential

0.00%

0.00%

0.00%

Commercial

0.35%

0.75%

1.10%

Industrial

0.23%

0.50%

0.73%

Total Tax Rate Increase

0.51%

1.08%

1.59%

Background Information

(February 4, 2021) Decision Letter from the Budget Committee on 2021 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-163659.pdf
(January 25, 2021) Report from the Chief Financial Officer and Treasurer on 2021 Property Tax Rates and Related Matters
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-163491.pdf

Communications

(February 7, 2021) E-mail from Ela Nolast (EX.Supp)
(February 7, 2021) E-mail from Carol Riley (EX.Supp)
(February 7, 2021) E-mail from Heather Jewell (EX.Supp)
(February 6, 2021) E-mail from Dana A (EX.Supp)
(February 6, 2021) E-mail from Melanie Lanno (EX.Supp)
(February 5, 2021) E-mail from Vijaya Jerome (EX.Supp)
(February 5, 2021) E-mail from Sam Martini (EX.Supp)
(February 5, 2021) E-mail from Patrick Smith and Susan Smith (EX.Supp)
(February 5, 2021) E-mail from Paul Hardie (EX.Supp)
(February 10, 2021) E-mail from Hamish Wilson (EX.Supp)
(February 9, 2021) E-mail from Sharon Griffin (EX.Supp)
(February 9, 2021) E-mail from Sharon Griffin (EX.Supp)
(February 9, 2021) E-mail from Hyim Bessin (EX.Supp)

Motions

Motion to Adopt Item moved by Councillor Gary Crawford (Carried)
Source: Toronto City Clerk at www.toronto.ca/council