Item - 2024.EX16.17

Tracking Status

  • City Council adopted this item on July 24 and 25, 2024 without amendments and without debate.
  • This item was considered by Executive Committee on July 16, 2024 and was adopted with amendments. It will be considered by City Council on July 24 and 25, 2024.
  • See also By-law 818-2024

EX16.17 - 2024 Heads and Beds Levy on Institutions

Decision Type:
ACTION
Status:
Adopted on Consent
Wards:
All

City Council Decision

City Council on July 24 and 25, 2024, adopted the following:

 

1. City Council authorize the levy and collection of amounts for the 2024 taxation year on colleges and universities, public hospitals, and correctional facilities at the prescribed rate of $75 per provincially rated hospital bed, full time student or resident place as authorized by Section 285 of the City of Toronto Act, 2006, to be due on September 5, 2024.

 

2.  City Council forward the Item to the Premier of Ontario and the Ontario Minister of Finance and request the Province to increase the $75.00 levy annually by the rate of inflation.

Background Information (Committee)

(June 19, 2024) Report from the Interim Controller on 2024 Heads and Beds Levy on Institutions
https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-247288.pdf
Attachment 1 - Letter dated May 15, 2024 from the Ministry of Municipal Affairs and Housing, Municipal Programs and Analytics Branch, regarding the capacity of institutions information to be used for the 2024 payments in lieu calculations
https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-247289.pdf
Attachment 2 - Summary of Heads and Beds Levy on Institutions, 2020 - 2024
https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-247290.pdf

Communications (City Council)

(July 16, 2024) E-mail from Paul Martin (CC.Main)

EX16.17 - 2024 Heads and Beds Levy on Institutions

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1. City Council authorize the levy and collection of amounts for the 2024 taxation year on colleges and universities, public hospitals, and correctional facilities at the prescribed rate of $75 per provincially rated hospital bed, full time student or resident place as authorized by Section 285 of the City of Toronto Act, 2006, to be due on September 5, 2024.

 

2.  City Council forward the Item to the Premier of Ontario and the Ontario Minister of Finance and request the Province to increase the $75.00 levy annually by the rate of inflation.

Origin

(June 19, 2024) Report from the Interim Controller

Summary

This report requests Council authority to adopt a by-law to levy amounts in the 2024 taxation year for colleges and universities, public hospitals, and correctional facilities (the "institutions"), estimated at approximately $19.8 million (annual "Heads and Beds" levy) based on the current legislative rates.

 

A levy of $75 per head or bed has been in effect since 1987. If the rates had been increased to reflect increases in the Consumer Price Index in each year from 1987 to 2024 (such that the 2024 rate would be $177.81 for each full time student, provincially rated bed, or resident place), an additional $27.2 million in tax revenue would be received in 2024. This is an issue faced by all Ontario municipalities.

Background Information

(June 19, 2024) Report from the Interim Controller on 2024 Heads and Beds Levy on Institutions
https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-247288.pdf
Attachment 1 - Letter dated May 15, 2024 from the Ministry of Municipal Affairs and Housing, Municipal Programs and Analytics Branch, regarding the capacity of institutions information to be used for the 2024 payments in lieu calculations
https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-247289.pdf
Attachment 2 - Summary of Heads and Beds Levy on Institutions, 2020 - 2024
https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-247290.pdf

Motions

1 - Motion to Amend Item (Additional) moved by Councillor Paul Ainslie (Carried)

That City Council forward the Item to the Premier of Ontario and the Ontario Minister of Finance and request the Province to increase the $75.00 levy annually by the rate of inflation.


Motion to Adopt Item as Amended moved by Mayor Olivia Chow (Carried)
Source: Toronto City Clerk at www.toronto.ca/council