O. Reg. 161/09: TRADITIONAL MUNICIPAL TAXES, LIMITS AND COLLECTION


Published: 2009-04-17

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ontario regulation 161/09

made under the

city of toronto act, 2006

Made: April 16, 2009
Filed: April 17, 2009
Published on e-Laws: April 21, 2009
Printed in The Ontario Gazette: May 2, 2009


Amending O. Reg. 121/07

(Traditional Municipal Taxes, Limits and Collection)

1. Subsection 1 (1) of Ontario Regulation 121/07 is amended by adding the following definitions:

“commercial classes” has the meaning set out in subsection 275 (1) of the Act;

“industrial classes” has the meaning set out in subsection 275 (1) of the Act;

“optional property class” has the meaning set out in subsection 275 (1) of the Act;

“qualifying taxation year” means the 2007, 2008 or 2009 taxation year;

“specified residential class” means the residential, farm, managed forest or new multi-residential property class;

“unadjusted class ratio” means, in respect of a property class for a year, the tax ratio for the property class for the year that is determined under subsection 6 (1).

2. The Regulation is amended by adding the following sections:

Transition ratios 2009

2.2 (1) This section applies for the 2009 taxation year if, in comparison to 2008, the percentage of total tax revenue for 2009 derived from tax on property in a class other than a specified residential class would be lower in 2009 if the unadjusted tax ratios for 2009 were applied.

(2) If this section applies, the City may establish a tax ratio for 2009 for the property class referred to in subsection (1) that is greater than the unadjusted tax ratio for the class but not greater than the transition ratio determined for the class under this section.

(3) If the City establishes a tax ratio for a property class under subsection (2), the transition ratios determined under this section apply to the City for 2009 except for the purposes of,

(a) the specified residential classes; and

(b) an optional property class if 2009 is the first year in which the optional property class applies in the City.

(4) The following rules apply for the purposes of this section:

1. The total assessment of the properties in a property class for 2008 includes all assessments made for the purposes of taxation for 2008 that are made after the return of the roll for 2008.

2. In determining the total assessment of the properties in a property class for 2009, the City may elect to exclude the assessment of a property in the property class if,

i. the current value of the property has,

A. increased since 2008 by 100 per cent or such greater percentage as the City elects, or

B. decreased since 2008 by 25 per cent or such greater percentage as the City elects, and

ii. the City also excludes the assessment of the property in determining the total assessment of the properties in the property class for 2008.

3. An optional property class is considered to be a separate property class for the purposes of subsection (4).

(5) Subject to sections 2.3 and 2.4, the transition ratio for a property class for the purposes of subsection 275 (8) of the Act is determined as follows:

1. Multiply the unadjusted tax ratio for the property class for 2009 by the amount of the total assessment of the properties in that property class for 2009.

2. Multiply the unadjusted tax ratio for the property class for 2009 by the amount of the total assessment of the properties in that property class for 2008.

3. Determine the weighted reassessment change for the specified residential classes by dividing “A” by “B” where,

“A” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the specified residential classes, and

“B” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the specified residential classes.

4. Determine the weighted reassessment change for the commercial classes by dividing “C” by “D” where,

“C” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the commercial classes, and

“D” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the commercial classes.

5. Determine the weighted reassessment change for the industrial classes by dividing “E” by “F” where,

“E” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the industrial classes, and

“F” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the industrial classes.

6. For each property class that is not included in the specified residential classes, the commercial classes or the industrial classes, determine the weighted reassessment change for the property class by dividing the amount determined under paragraph 1 for the property class by the amount determined under paragraph 2 for the property class.

7. Determine the adjustment factor for each property class by dividing “G” by “H” where,

“G” is,

(a) the weighted reassessment change for the commercial classes as determined under paragraph 4 if the property class is included in the commercial classes,

(b) the weighted reassessment change for the industrial classes as determined under paragraph 5 if the property class is included in the industrial classes, or

(c) the weighted reassessment change for the property class as determined under paragraph 6 if the property class is not included in the specified residential classes, the commercial classes or the industrial classes, and

“H” is the weighted reassessment change for the specified residential classes as determined under paragraph 3.

8. Determine the transition ratio for the property class for 2009 by dividing the unadjusted tax ratio for the property class for 2009 by the adjustment factor for the property class determined under paragraph 7.

New multi-residential and farm property classes

2.3 For 2009, the transition ratio for the new multi-residential and farm property classes in the City is equal to the tax ratios for those classes in the City for 2008.

Transition ratio for new classes

2.4 The following rules apply for the purposes of subsection 275 (8) of the Act in determining the transition ratio for a property class in the City for 2009:

1. The transition ratio for a property class other than an optional property class is the upper limit of the allowable range of tax ratios prescribed for the property class if no property class was classified in the property class in the previous year.

Average transition ratios

2.5 (1) The following rules apply for the purposes of subsection 275 (8) of the Act for the 2009 taxation year:

1. The prescribed average transition ratio for the commercial classes is the weighted average of the 2009 transition ratios for the property classes within the commercial classes.

2. The prescribed average transition ratio for the industrial classes is the weighted average of the 2009 transition ratios for the property classes within the industrial classes.

(2) For the purposes of subsection (1), the weighted average of the 2009 transition ratios shall be calculated using the formula in subsection 275 (12) of the Act, except that the phrase “tax ratios” in the portion before paragraph 1 shall be read as “transition ratios” and the phrase “tax ratio” in paragraph 1 shall be read as “transition ratio”.

(3) This section does not apply to determine transition ratios for the commercial classes or industrial classes, as the case may be, in the first year an optional property class applies in a municipality.

3. (1) Subsection 3 (4) of the Regulation is amended by striking out “for the 2007 or 2008 taxation year” in the portion before the formula and substituting “for a qualifying taxation year”.

(2) Subsection 3 (5) of the Regulation is revoked.

4. (1) Subsection 7 (5) of the Regulation is amended by striking out “For the 2007 taxation year” in the portion before paragraph 1 and substituting “For a qualifying taxation year”.

(2) Paragraph 2 of subsection 7 (5) of the Regulation is amended by striking out “for 2007” and substituting “for a qualifying taxation year”.

5. The Regulation is amended by adding the following section:

Property Exempt from Part XII of the Act

City options

7.1 (1) A property is exempt from the application of Part XII of the Act for a taxation year if a by-law has been enacted by the City that provides that this section applies within the City for the year.

(2) A by-law under subsection (1) may require that any of the following conditions be met in order for a property to be exempt:

1. The taxes for the property in the previous year were equal to its uncapped taxes for that year.

2. As a result of Part XII of the Act, the taxes for the property in the previous year were lower than the property’s uncapped taxes for that year, but in the current year, if Part XII of the Act applied, the property’s taxes would be equal to its uncapped taxes, or a tax decrease for the property would be limited.

3. A tax decrease for the property in the previous year was limited under Part XII of the Act, but in the current year, if Part XII of the Act applied, the property’s taxes would be equal to its uncapped taxes, or a tax increase for the property would be limited.

(3) A by-law under subsection (1) must be passed on or before the time provided for in subsection 292 (2) of the Act.

6. Paragraph 1 of subsection 35 (3) of the Regulation is revoked and the following substituted:

1. Property that would otherwise be eligible property only because of a change in classification from one class in the commercial classes to another class in the commercial classes or from one class in the industrial classes to another class in the industrial classes.

1.1. Property that would otherwise be eligible property only because of a change in classification and that satisfies the following conditions:

i. After the change in classification, the property is classified in a single class of real property.

ii. In the previous year, portions of the property were deemed to be separate properties under subsection 288 (3) of the Act.

iii. In the previous year, the portions of the property described in subparagraph ii were subject to Part XII of the Act.

7. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.

(2) Section 6 is deemed to have come into force on January 1, 2008.

Made by:

Dwight Douglas Duncan

Minister of Finance

Date made: April 16, 2009.