Item - 2022.EX32.4
Tracking Status
- City Council adopted this item on May 11 and 12, 2022 without amendments and without debate.
- This item was considered by the Executive Committee on May 4, 2022 and adopted without amendment. It will be considered by City Council on May 11 and 12, 2022.
- See also By-law 430-2022
EX32.4 - 2022 Education Property Tax Levy and Clawback Rate By-Law
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on May 11 and 12, 2022, adopted the following:
1. City Council adopt the 2022 tax rates for school purposes, as shown in column II, which will generate an education tax levy on rateable properties for 2022 of $2,128,186,311 in accordance with Ontario Regulation 400/98 as amended, prescribing such rates for the City of Toronto, of which $4,783,977 is to be retained by the City pursuant to Ontario Regulation 121/07:
Column I |
Column II |
Property Class |
2022 Tax Rates for Education Levy |
Residential |
0.153000 percent |
Multi-Residential |
0.153000 percent |
New Multi-Residential |
0.153000 percent |
Commercial |
0.880000 percent |
Commercial Shared Payment-in-Lieu |
0.980000 percent |
Industrial |
0.880000 percent |
Industrial Shared Payment-in -Lieu |
1.0672200 percent |
Pipelines |
0.880000 percent |
Farmlands |
0.038250 percent |
Managed Forests |
0.038250 percent |
2. City Council adopt the following property tax capping polices for the 2022 taxation year:
a. limit tax increases for the commercial, industrial, and multi-residential property classes by capping taxes at 10 percent of the preceding year’s annualized taxes, by opting to have subsection 292(1), paragraph 1, of the City of Toronto Act, 2006, apply for the 2022 taxation year;
b. continue to provide that the 10 percent cap on tax increases apply to any property within the commercial, industrial and multi-residential classes, regardless of whether the property had reached full Current Value Assessment taxation levels in a prior year, subject to the threshold adopted in Part c. below; and
c. for the purposes of subsection 292(1), paragraphs 3 and 4 of the City of Toronto Act, 2006, adopt a threshold limit of $500 to determine the taxes for municipal and school purposes, such that properties that are within $500 (plus or minus) of their full Current Value Assessment level of taxation in the current year are taxed at full Current Value Assessment taxation levels for the year, and are therefore excluded from capping/claw-back provisions for that year.
3. City Council adopt reductions in tax decreases for the 2022 taxation year on properties in the commercial, industrial and multi-residential property classes by the percentage of the tax decrease set out in Column II in order to recover the revenues foregone as a result of capping, and to allow the decrease percentages set out in Column III:
Column I |
Column II |
Column III |
(Property Class) |
(Clawback Percentage) |
(Allowable Decrease) |
Commercial |
81.187053 percent |
18.812947 percent |
Industrial |
70.963057 percent |
29.036943 percent |
Multi-residential |
100.00 percent |
0.00 percent |
4. City Council authorize a one-time draw from the Tax Rate Stabilization Reserve in 2022 to maintain City Council's previously approved 2022 municipal tax levy and the education levy set out in Part 1 above, in an amount sufficient to fully offset any shortfall in the clawback amount for the Multi-Residential property tax class for the 2022 taxation year, in order to maintain consistency with City Council's tax capping policies from prior years, in an amount not to exceed $47,000.
5. City Council authorize the introduction of the necessary Bills in City Council to give effect to City Council's decision.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2022/ex/bgrd/backgroundfile-224733.pdf
EX32.4 - 2022 Education Property Tax Levy and Clawback Rate By-Law
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council adopt the 2022 tax rates for school purposes, as shown in column II, which will generate an education tax levy on rateable properties for 2022 of $2,128,186,311 in accordance with Ontario Regulation 400/98 as amended, prescribing such rates for the City of Toronto, of which $4,783,977 is to be retained by the City pursuant to Ontario Regulation 121/07:
Column I |
Column II |
Property Class |
2022 Tax Rates for Education Levy |
Residential |
0.153000 percent |
Multi-Residential |
0.153000 percent |
New Multi-Residential |
0.153000 percent |
Commercial |
0.880000 percent |
Commercial Shared Payment-in-Lieu |
0.980000 percent |
Industrial |
0.880000 percent |
Industrial Shared Payment-in -Lieu |
1.0672200 percent |
Pipelines |
0.880000 percent |
Farmlands |
0.038250 percent |
Managed Forests |
0.038250 percent |
2. City Council adopt the following property tax capping polices for the 2022 taxation year:
a. limit tax increases for the commercial, industrial, and multi-residential property classes by capping taxes at 10 percent of the preceding year’s annualized taxes, by opting to have subsection 292(1), paragraph 1, of the City of Toronto Act, 2006, apply for the 2022 taxation year;
b. continue to provide that the 10 percent cap on tax increases apply to any property within the commercial, industrial and multi-residential classes, regardless of whether the property had reached full Current Value Assessment taxation levels in a prior year, subject to the threshold adopted in Part c. below.
c. for the purposes of subsection 292(1), paragraphs 3 and 4 of the City of Toronto Act, 2006, adopt a threshold limit of $500 to determine the taxes for municipal and school purposes, such that properties that are within $500 (plus or minus) of their full Current Value Assessment level of taxation in the current year are taxed at full Current Value Assessment taxation levels for the year, and are therefore excluded from capping/claw-back provisions for that year.
3. City Council adopt reductions in tax decreases for the 2022 taxation year on properties in the commercial, industrial and multi-residential property classes by the percentage of the tax decrease set out in Column II in order to recover the revenues foregone as a result of capping, and to allow the decrease percentages set out in Column III:
Column I |
Column II |
Column III |
(Property Class) |
(Clawback Percentage) |
(Allowable Decrease) |
Commercial |
81.187053 percent |
18.812947 percent |
Industrial |
70.963057 percent |
29.036943 percent |
Multi-residential |
100.00 percent |
0.00 percent |
4. City Council authorize a one-time draw from the Tax Rate Stabilization Reserve in 2022 to maintain Council's previously approved 2022 municipal tax levy and the education levy set out in Recommendation 1 above, in an amount sufficient to fully offset any shortfall in the clawback amount for the Multi-Residential property tax class for the 2022 taxation year, in order to maintain consistency with Council's tax capping policies from prior years, in an amount not to exceed $47,000.
5. City Council authorize the introduction of the necessary bills in Council to give effect to Council's decision.
Origin
Summary
This report recommends adoption of the 2022 education tax rates and education property tax levy for school purposes, as required by legislation. The City of Toronto levies and collects education taxes on behalf of the Province of Ontario, based on the education tax rates set out in Ontario Regulation 400/98.
This report also recommends continuing the policy of limiting (capping) allowable tax increases in 2022 to a maximum of 10 percent of a property's prior year's taxes, for any property in the commercial, industrial and multi-residential tax classes that would otherwise experience a property tax increase of greater than 10 percent and where the tax increase is greater than $500.
The costs of capping protection will be funded by withholding (clawing-back) a portion of the tax decreases that would otherwise be experienced by other properties within each class, as has been the City's practice since 1998, and for 2022 for the first time since capping policies were adopted in 1998, by a one-time draw from the Tax Rate Stabilization Reserve to fund a shortfall in available clawback within the multi-residential tax class. This report recommends the percentage of the tax decreases that must be withheld (the ‘clawback’ rates) in order to fund the capping limit on properties in the commercial, industrial and multi-residential property classes, as provided for by legislation.
Background Information
https://www.toronto.ca/legdocs/mmis/2022/ex/bgrd/backgroundfile-224733.pdf