Item - 2023.EX4.3
Tracking Status
- City Council adopted this item on May 10, 11 and 12, 2023 with amendments.
- This item was considered by the Executive Committee on May 2, 2023 and adopted without amendment. It will be considered by City Council on May 10, 11 and 12, 2023.
- See also By-law 426-2023
EX4.3 - 2023 Education Property Tax Levy and Clawback Rate By-Law
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on May 10, 11 and 12, 2023, adopted the following:
1. City Council adopt the 2023 tax rates for school purposes, as shown in Column II, which will generate an education tax levy on rateable properties for 2023 in the total amount of $2,140,137,916 in accordance with Ontario Regulation 400/98 as amended, prescribing such rates for the City of Toronto, of which $4,804,288 (0.2 percent of the total education levy) is to be retained by the City pursuant to Ontario Regulation 121/07:
|
Column I |
Column II |
|
Property Class |
2023 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 |
1.067220 percent |
|
Pipelines |
0.880000 percent |
|
Farmlands |
0.038250 percent |
|
Managed Forests |
0.038250 percent |
2. City Council adopt reductions in tax decreases for the 2023 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 |
70.003192 percent |
29.996808 percent |
|
Industrial |
41.654010 percent |
58.345990 percent |
|
Multi-residential |
79.448408 percent |
20.551592 percent |
3. City Council authorize the introduction of the necessary Bills in Council to give effect to City Council's decision.
4. City Council request the Government of Ontario to allow the City of Toronto to keep 100 percent of the property taxes collected within the City of Toronto.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-235942.pdf
Motions (City Council)
That:
1. City Council request the Government of Ontario to allow the City of Toronto to keep 100 percent of the property taxes collected within the City of Toronto.
Vote (Amend Item (Additional)) May-12-2023 3:38 PM
| Result: Carried | Majority Required - EX4.3 - Perruzza - motion 1 |
|---|---|
| Total members that voted Yes: 14 | Members that voted Yes are Paul Ainslie, Jon Burnside, Lily Cheng, Vincent Crisanti, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson |
| Total members that voted No: 9 | Members that voted No are Brad Bradford, Alejandra Bravo, Mike Colle, Paula Fletcher, Stephen Holyday, Ausma Malik, Jennifer McKelvie, Jamaal Myers, Dianne Saxe |
| Total members that were Absent: 2 | Members that were absent are Shelley Carroll, Gary Crawford |
EX4.3 - 2023 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 2023 tax rates for school purposes, as shown in column II, which will generate an education tax levy on rateable properties for 2023 in the total amount of $2,140,137,916 in accordance with Ontario Regulation 400/98 as amended, prescribing such rates for the City of Toronto, of which $4,804,288 (0.2 percent of the total education levy) is to be retained by the City pursuant to Ontario Regulation 121/07:
|
Column I |
Column II |
|
Property Class |
2023 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 |
1.067220 percent |
|
Pipelines |
0.880000 percent |
|
Farmlands |
0.038250 percent |
|
Managed Forests |
0.038250 percent |
2. City Council adopt reductions in tax decreases for the 2023 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 |
70.003192 percent |
29.996808 percent |
|
Industrial |
41.654010 percent |
58.345990 percent |
|
Multi-residential |
79.448408 percent |
20.551592 percent |
3. City Council authorize the introduction of the necessary Bills in Council to give effect to City Council's decision.
Origin
Summary
This report recommends adoption of the 2023 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.
In February 2023, City Council adopted the recommendation to continue the policy of limiting (capping) allowable tax increases to a maximum of 10% of a property's prior year's annualized 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% and where the tax increase is greater than $500.
This report also recommends the 2023 percentage of the tax decreases (the ‘clawback’ rates) required to fund the capping limit on properties in the commercial, industrial and multi-residential property classes, as provided for by legislation. It has been long standing City Council policy to adopt clawback rates sufficient to fund forgone revenues arising from its adopted tax increase capping policy, and as provided for by legislation.
Background Information
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-235942.pdf