2007 Property Assessment and Tax Analysis of 2006 Data. Prepared for Real Property Association of Canada. November 23, 2007

Transcription

1 2007 Property Assessment and Tax Analysis of 2006 Data Prepared for Real Property Association of Canada November 23, 2007 Prepared by: ALTUS DERBYSHIRE A division of Altus Group Limited 191 The West Mall, Suite 200 Toronto ON M9C 5K8 Tel: (416) Fax: (416)

2 PROJECT OVERVIEW Altus Derbyshire is pleased to be involved for the fifth year in providing the Real Property Association of Canada (REALpac) with a Canada-wide survey of assessment bases and property tax levies of major urban centres. REALpac will determine from this information the ratio of each property tax class to the total assessment base for these municipalities for the 2006 tax year, with the intention to promote tax fairness. In compiling our survey, consideration has been given to provincial and local assessment practices, varying classifications, grants, exemptions, payments in lieu, the property tax required to finance relative to other revenue sources, and business taxes. For example, cities collecting both property taxes and business taxes typically levy property taxes at a lower rate. In some cases it was difficult to extract a ratio for each assessment and tax class; for example, the commercial portion of the assessment may have been tied into other portions. This was the case for Calgary, Edmonton, Halifax, Regina, Saskatoon, St. John s and Winnipeg, all of which have assessments that may include commercial and/or industrial properties within other classes. On the other hand, Ontario and British Columbia use specific classifications. Information with regard to the 2006 total assessment bases and tax levies provided in last year s survey has been updated to reflect revisions published by the municipalities. Altus Derbyshire, a division of Altus Group Limited

3 NATIONAL ASSESSMENT AND TAX POLICIES British Columbia - Richmond, Surrey, Vancouver BC Assessment Authority is responsible for assessing property (its value and classification). Assessments are performed annually with a valuation date of July 1, reflecting physical condition and permitted use as at October 31. Property assessment notices are mailed out on December 31. The classes of property are: Class 1 - Residential Class 2 - Utilities Class 3 - This class was repealed in 2004 Class 4 - Major Industry Class 5 - Light Industry Class 6 - Business and Other Class 7 - Managed Forest Land Class 8 - Recreational Property / Non-Profit Organization Class 9 - Farm It is possible for a property with several uses to fall into more than one class. The Greater Vancouver Transportation Authority levied a new parking site tax in 2006 at a rate of $0.78 per square meter. BC Assessment was contracted to assess the area of all parking sites including access lanes, driveways, ramps, and loading areas (property classes 1, 2, 7, 9 and some specific uses are exempt). Altus Derbyshire, a division of Altus Group Limited

4 ALBERTA - Calgary, Edmonton In Alberta, properties are classified according to actual use. The four property classes as set out in the Municipal Government Act are: Class 1 Residential Class 2 Non- Residential Class 3 Farm Land Class 4 Machinery and Equipment Municipalities return annual assessment rolls by February 28. The property class determines the tax rate to be applied. Non-residential (Class 2) includes all commercial and industrial properties. Edmonton and Calgary collect business taxes. For 2006, Calgary and Edmonton collected business taxes of $156,458,000 and $97,968,000, respectively. Altus Derbyshire, a division of Altus Group Limited

5 MANITOBA - Winnipeg The reference year for the 2006 reassessment, as established by provincial legislation, is For the purpose of calculating mill rates and taxes, municipalities use "portioned" assessment; only a portion (or percent) of the assessment of a property is taxed. Portioning establishes each property class s share of taxes raised on a province-wide basis, so that property taxation is fair and equitable. The 10 property classes and their portions are as follows: Property Class Portion (%) of Assessment Subject to Taxation Residential 1 (less than 5 dwelling units) 45% Residential 2 (5 or more dwelling units) 45% Residential 3 (Owner-occupied condominiums and cooperative housing) 45% Farm Property 26% Other (Commercial) 65% Institutional Property 65% Designated Higher Education Property 0% Designated Recreational Property 10% Pipeline 50% Railway 25% Winnipeg has the authority to vary the taxation portion for municipal tax purposes, to address local circumstances. Winnipeg collected a total of $64,125,360 in business taxes, including licenses in lieu of business taxes and business improvement zone levies. Altus Derbyshire, a division of Altus Group Limited

6 NEWFOUNDLAND St. John s Since 1997, the Municipal Assessment Agency is the crown-owned corporation responsible for providing property valuations for tax purposes under the Assessment Act. St. John s has only two property tax classes, residential and non-residential. In addition to property taxes, St. John s collects business taxes, $19,425,740 for ONTARIO - Burlington, Kingston, Mississauga, Ottawa, Toronto Property assessment notices are sent out annually to all property owners. For 2006, current values were based on a January 1, 2005 valuation date. Property is classified according to its actual use. The property assessment class determines the tax rate that will be applied. The Assessment Act requires that the assessed value of property be based on what the property would sell for as of a specific date (January 1, 2005 for the 2006 taxation year). Ontario s tax classes include: residential, multi-residential, commercial, industrial, farmland, pipeline, and managed forest, and various subclasses. For the purposes of this survey, the commercial class is limited to property classified CT (Commercial), ST (Shopping Centre) and DT (Office Building), and excludes commercial vacant or excess lands. The industrial category includes all property classified either IT (Industrial), or LT (Large Industrial) and excludes industrial vacant and excess lands. The multi-residential category includes all property that was classified either MT (Multi-Res), or NT (New Multi-Res). Altus Derbyshire, a division of Altus Group Limited

7 QUEBEC Gatineau, Laval, Montreal General information: Municipal tax bills billed to assessed owners o General tax (mill rate x deposited realty assessment or phase-in value), variable by property type (vacant land, residential, apartment buildings of 6+ units, non-residential) o Local improvement tax (unit rate x street frontage or land area based on cost to finance the services) o Other fixed taxes (unit rate x number of units) garbage, snow removal, water, etc. School tax billed by school boards (mill rate (maximum of 0.35%) x standardized realty assessment Taxes based on rental value assessments (mill rate x rental value) Water taxes billed by municipalities may be calculated on the basis of consumption, unit (i.e., number of retail units in a shopping centre), or on realty and/or rental value. Municipal amalgamations City of Montreal Montreal may initiate a new method of taxing water supply as a result of municipal amalgamation and the policy to balance the tax burden. Currently, water tax is payable as a utility cost, except under payments in lieu. City of Gatineau The new City of Gatineau was one of the first major cities in Quebec to produce a new assessment roll for the 2003 tax year, based on a July 1, 2001 valuation date. Altus Derbyshire, a division of Altus Group Limited

8 SASKATCHEWAN Regina The Saskatchewan Assessment Management Agency (SAMA) was established in 1987 to manage property assessment policies and practices for Saskatchewan municipalities and school divisions. Property is classified as follows: Residential (# 2) Commercial (# 3) Agricultural Land (# 4) Special Purpose (# 5) Seasonal (# 6) Oil and Gas Equipment (# 7) Mining Equipment (# 8) Golf Courses (# 9) Altus Derbyshire, a division of Altus Group Limited

9 SUMMARY GRAPHS AND TABLES We have summarized in a graph for each municipality the following: 1. Property tax levy per person, including business tax Compares the total property tax (incorporating business taxes) per person of each municipality in the survey using 2006 Census data 2. Property taxes levied against $1000 of commercial assessment Taxes payable for every $1000 of commercial assessment 3. Property taxes levied against $1000 of residential assessment Taxes payable for every $1000 of assessed value classified as residential 4. Ratio of residential assessment base to total assessment base 5. Ratio of commercial assessment base to total assessment base 6. Ratio of total residential tax levy to total tax levy 7. Ratio of total commercial tax levy to total tax levy 8. Ratio of Commercial/Residential Tax Rates for Highest Commercial / Residential Tax Ratios by Year Lowest Commercial / Residential Tax Ratios by Year Highest Commercial / Residential Tax Ratios by Municipality Lowest Commercial / Residential Tax Ratios by Municipality Altus Derbyshire, a division of Altus Group Limited

10 ASSESSMENT AND TAXATION SUMMARIES Altus Derbyshire has prepared for each of the municipalities breakdowns by tax classes of the total assessment base and the total tax levy, to demonstrate the assessment and tax burden on each tax class for 2006 taxation. For each municipality, a one page summary sheet has been provided, detailing 2006 tax rates, the total assessment base and the property tax levy (not including business taxes), and the ratio of commercial tax (or other) to residential tax. For example, the following is the calculation for the ratio of commercial tax rate to the residential tax rate for the City of Toronto for 2006: 2006 Commercial Tax Rate Residential Tax Rate = 4.89 The commercial tax rate in Toronto is 4.89 times the residential rate. In addition, each summary page contains pie charts, the first of which provides a breakdown of the total assessment by property class, and the second a breakdown of the total tax levy by tax class. In addition, for all municipalities in this survey, the following is provided: - further analysis of the 2006 assessment and taxation figures; - pie charts indicating the breakdown of assessment bases and tax levies. Altus Derbyshire, a division of Altus Group Limited

11 2006 ESTIMATED PROPERTY TAXES PER $1000 OF COMMERCIAL ASSESSMENT $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 St John's NL Calgary Edmonton Surrey Richmond Markham Burlington Mississauga Gatineau Vancouver Pickering Average Halifax Ottawa Laval Saskatoon Toronto Winnipeg Kingston Montreal Regina THE FIGURES IN THIS CHART ARE CALCULATED BY MULTIPLYING THE APPLICABLE TAX RATE BY $1,000. WHERE MILL RATE FACTORS ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY $1,000 AND THEN THE RESULT IS MULTIPLIED BY THE APPLICABLE MILL RATE FACTOR

12 2006 ESTIMATED PROPERTY TAXES PER $1000 OF RESIDENTIAL ASSESSMENT $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Vancouver Surrey Richmond Calgary Toronto Gatineau Edmonton Mississauga Markham Burlington Ottawa St John's NL Halifax Average Pickering Montreal Laval Kingston Winnipeg Saskatoon Regina THE FIGURES IN THIS CHART ARE CALCULATED BY MULTIPLYING THE APPLICABLE TAX RATE BY $1,000. WHERE MILL RATE FACTORS ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY $1,000 AND THEN THE RESULT IS MULTIPLIED BY THE APPLICABLE MILL RATE FACTOR

13 2006 TOTAL PROPERTY AND BUSINESS TAX LEVY PER PERSON $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Montreal St John's Surrey Laval Edmonton Gatineau Halifax Calgary Saskatoon Winnipeg Average Regina Richmond Ottawa Kingston Pickering Vancouver Markham Burlington Mississauga FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE TOTAL INDICATED TAXES LEVIED BY THE INDICATED POPULATION (POPULATION DATA OBTAINED FROM CANADA CENSUS 2006)

14 2006 RESIDENTIAL ASSESSMENT AS % OF TOTAL ASSESSMENT BASE % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Ottawa Winnipeg Regina Edmonton Saskatoon Gatineau Mississauga Laval Toronto Average Montreal Calgary St John's NL Kingston Richmond Burlington Markham Halifax Vancouver Pickering Surrey FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE RESPECTIVE MUNICIPALITY'S TOTAL RESIDENTIAL ASSESSMENT BY THE TOTAL RESIDENTIAL ASSESSMENT FOR ALL MUNICIPALITIES INCLUDED IN THIS SURVEY

15 2006 TOTAL RESIDENTIAL TAX LEVY AS % OF TOTAL PROPERTY TAX LEVY 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Toronto Vancouver Mississauga Richmond Regina Laval Ottawa Winnipeg Edmonton Average Montreal Kingston Gatineau Calgary Burlington Saskatoon Halifax St John's NL Markham Surrey Pickering FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE RESPECTIVE MUNICIPALITY'S TOTAL RESIDENTIAL TAX LEVY BY THE TOTAL RESIDENTIAL TAX LEVY FOR ALL MUNICIPALITIES INCLUDED IN THIS SURVEY

16 2006 COMMERCIAL ASSESSMENT AS % OF TOTAL ASSESSMENT BASE 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Laval Surrey Pickering Burlington Kingston Ottawa Markham Vancouver Gatineau Halifax Toronto Average Mississauga Montreal Richmond St John's Calgary Edmonton Regina Saskatoon Winnipeg FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE RESPECTIVE MUNICIPALITY'S TOTAL COMMERCIAL ASSESSMENT BY THE TOTAL COMMERCIAL ASSESSMENT FOR ALL MUNICIPALITIES INCLUDED IN THIS SURVEY

17 2006 TOTAL COMMERCIAL TAX LEVY AS % OF TOTAL PROPERTY TAX LEVY 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Laval Pickering Burlington Kingston Surrey Markham Saskatoon Regina Gatineau Average Ottawa Mississauga St John's Winnipeg Halifax Montreal Edmonton Calgary Toronto Richmond Vancouver FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE RESPECTIVE MUNICIPALITY'S TOTAL COMMERCIAL TAX LEVY BY THE TOTAL COMMERCIAL TAX LEVY FOR ALL MUNICIPALITIES INCLUDED IN THIS SURVEY

18 2006 TAX RATIO COMMERCIAL TO RESIDENTIAL TAX RATES Saskatoon St John's Regina Winnipeg Edmonton Pickering Markham Burlington Calgary Mississauga Halifax Laval Kingston Gatineau Ottawa Montreal Surrey Richmond Toronto Vancouver FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE COMMERCIAL TAX RATE BY THE RESIDENTIAL TAX RATE TO OBTAIN A RATIO. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO

19 TAX RATIOS 3 HIGHEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY YEAR 6 5 Toronto Toronto Vancouver Vancouver Toronto Vancouver 4 Richmond Richmond Richmond FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE COMMERCIAL TAX RATE BY THE RESIDENTIAL TAX RATE TO OBTAIN A RATIO. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO

20 TAX RATIO 3 LOWEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY YEAR Regina SaskatoonSt. Johns Saskatoon St Johns St Johns Regina Saskatoon Regina 1 0 FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE COMMERCIAL TAX RATE BY THE RESIDENTIAL TAX RATE TO OBTAIN A RATIO. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO

21 TAX RATIOS 3 HIGHEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY CITY Richmond Toronto Vancouver FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE COMMERCIAL TAX RATE BY THE RESIDENTIAL TAX RATE TO OBTAIN A RATIO. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO

22 TAX RATIO 3 LOWEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY CITY Saskatoon St John's Regina FIGURES IN THIS CHART ARE CALCULATED BY DIVIDING THE COMMERCIAL TAX RATE BY THE RESIDENTIAL TAX RATE TO OBTAIN A RATIO. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO