Item - 2024.EX12.6
Tracking Status
- This item was considered by Executive Committee on February 29, 2024. The Executive Committee has referred this item to an official or other body without making a decision. Consult the text of the decision for further information on the referral.
- See also 2024.MM14.4
EX12.6 - Tax Fairness for All: An Equitable Approach to the Residential Property Tax Rate on Toronto Island
- Decision Type:
- ACTION
- Status:
- Referred
- Wards:
- All
Committee Decision
The Executive Committee :
1. Referred the Item to the City Manager for consideration, pending the Province of Ontario's completion of its ongoing review of the accuracy and fairness of Ontario's property assessment system, and subsequent reassessment of properties in Toronto.
Origin
Summary
City Council on February 6 and 7, 2024, referred Motion MM14.4 to the Executive Committee for consideration.
Toronto Island home owners enjoy a beautiful setting, low crime rates, full municipal services and a year-round ferry. Additionally, this exclusive enclave has some of the lowest residential property tax bills in the City.
Home ownership on Toronto Island is different from the rest of the City. Residents own the house but not the land it sits on, which is leased from the City. Consequently, residential property taxes are extremely low as they are based solely on the house value, not the land and house value like the rest of the Toronto.
Due to these unique circumstances, Toronto Island residents pay significantly lower residential property taxes than everyone else. For example, the average Toronto Island home owner pays approximately $1,530 per year, whereas the average Flemingdon Park tenant pays $4,320 of property tax annually in their rent.
However, given the island setting the cost of providing municipal services there is approximately three times the cost for the rest of the City.
With the current residential property tax rate, Toronto Island residents are not paying their fair share. In fact, the provision of their municipal services is heavily subsidized by taxpayers across the rest of Toronto.
Area Rating is a tool that allows a municipality to consider unique circumstances to apply a tax rate that is reflective of those circumstances. The employment of Area Rating for Toronto Island may be an appropriate measure for determining appropriate residential property tax rates for these special properties.
Background Information
https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-243113.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2024/ex/comm/communicationfile-177760.pdf
(February 28, 2024) Letter from Councillor Ausma Malik on Tax Fairness for All: An Equitable Approach to the Residential Property Tax Rate on Toronto Island (EX.New)
https://www.toronto.ca/legdocs/mmis/2024/ex/comm/communicationfile-177748.pdf
(February 28, 2024) E-mail from Hamish Wilson (EX.New)
Speakers
Motions
That the Executive Committee refer the Item to the City Manager for consideration, pending the Province of Ontario's completion of its ongoing review of the accuracy and fairness of Ontario's property assessment system, and subsequent reassessment of properties in Toronto.