The total amount of taxes collected depends on the municipality's revenue needs, and not on the value of property assessments within a municipality.

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Emil Short
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1 Taxes & Assessment This prfile cntains infrmatin n Mississauga s financial management, prperty tax rates, business tax rates (GST & PST), and a selected list f federal and prvincial tax incentives. Financial Management Mississauga City Cuncil prides itself n its enterprise apprach t running the City. Sund financial management has allwed the City t plan fr the future withut incurring any debt. Mississauga Cuncil is dedicated t keeping tax increases as lw as pssible. Respnsible financial management cupled with frward planning plicies has resulted in the City s debt-free status, with hundreds f millins in reserve funds fr future infrastructure develpment. The City has a Develpment Charge Plicy 1. The City perates n the philsphy that new develpment shuld pay fr itself. Funds cllected are placed in reserve t pay fr capital impr vements needed in the future. Fr decades develpers have included all servicing csts in the base price f land, eliminating the need fr lcal imprvement levies. Mississauga s basic utilities are relatively new and have been designed t handle future develpment s that upgrading csts will be minimal. Mississauga is the nly city amng the tp 10 cities in Canada t be assigned the AAA credit rating by Standard & Pr s. The rating is testimnial t the City's exceptinal liquidity levels, debt-free psitin, and its strng, strategically lcated ecnmy. The City f Mississauga cllects prperty taxes n behalf f the City, the Regin f Peel and the tw Bards f Educatin. 1 Infrmatin n Develpment Charges is available at: > Residents > Planning & Building > Fees & Charges Prperty Assessment The Municipal Prperty Assessment Crpratin (MPAC), a nt-fr-prfit crpratin funded by all Ontari municipalities, is respnsible t classify and assess the value f a prperty. T establish a prperty's assessed value, MPAC uses the Current Value Assessment (CVA) methd. The methd requires MPAC t analyze prperty sales in the area, and use the data, as a basis, t assess the value f similar prperties. Fr further infrmatin, cntact: Municipal Prperty Assessment Crpratin (MPAC), Haltn-Peel Assessment Office, 6745 Century Avenue, Suite # 1, Mississauga ON L5N 8C9, Tel.: MPAC (6722), Calculating Prperty Tax The ttal amunt f taxes cllected depends n the municipality's revenue needs, and nt n the value f prperty assessments within a municipality. The City and Regin, independently, determine the tax rate fr each f prperty tax class, while the Prvince sets the educatin tax rates fr all prperties. The cmbined tax rate (municipal, reginal and educatin) is then multip lied with CVA value t determine the prperty tax value. Taxes 2007 Tax Rates Prperty Class Residential Multi-Residential Cmmercial Industrial Tax Rate % % % % Surce: > Residents > Taxes & Assessment > Tax Rates Page 1 f 5

2 Cnsistently Lwer Tax Rates Tax rates in Mississauga are cnsistently lwer than mst Ontari cities fr many reasns. The mst imprtant reasns are: N lcal imprvement csts are chargeable t the wner/ccupant f the real estate. All csts f servicing, rad develpment and parkland, have been absrbed by the develper as a cnditin f subdivisin r severance. Debt free: Nt brrwed t finance expenditures. Industrial & Cmmercial Buildings - Tax Rates & Cmparisns Estimates f prperty tax values n a predetermined base CVA (Industrial-$4 Millin, Cmmercial-$2 Millin) are given belw. These estimates prvide an indicatin f the prperty tax values acrss several cities within suthern and western Ontari Industrial Tax Cmparisns City/Twn Tax Rates Ttal $ 2007 Cmmercial Tax Cmparisns City/Twn Tax Rates Ttal $ Lndn % $ 250,129 Guelph % $ 214,857 Cambridge % $ 213,292 Kitchener % $ 212,238 Waterl % $ 210,138 Oshawa % $ 209,393 Whitby % $ 179,756 Trnt % $ 174,771 Burlingtn % $ 153,123 Oakville % $ 147,353 Miltn % $ 138,503 Bramptn % $ 126,012 Mississauga % $ 117,646 Richmnd Hill % $ 108,051 Markham % $ 107,886 Vaughan % $ 107,580 Surce: Finance/Tax Department f the respective City Nte: Based n a $4 millin assessed building. Lndn % $ 99,584 Cambridge % $ 84,055 Kitchener % $ 83,635 Waterl % $ 82,800 Trnt % $ 81,866 Guelph % $ 77,064 Oshawa % $ 71,663 Whitby % $ 62,155 Bramptn % $ 55,242 Mississauga % $ 51,902 Burlingtn % $ 50,927 Oakville % $ 49,147 Richmnd Hill % $ 48,190 Markham % $ 48,118 Vaughan % $ 47,983 Miltn % $ 46,416 Surce: Finance/Tax Department f the respective City Nte: Based n a $2 millin assessed building. Page 2 f 5

3 Taxes Per Square Ft Prperty Type Municipal & Reginal Prtin Educatin Prtin Ttal Taxes* Industrial - Standard (Less than 125,000 sq. ft.) $ 0.87 $ 1.39 $ 2.27 Industrial - Large (Greater than 125,000 sq. ft.) $ 0.61 $ 0.98 $ 1.59 Cmmercial - Office buildings in prime lcatins f the city Surce: Municipal Study 2006, BMA Management Cnsulting Inc. $ 1.02 $ 1.59 $ 2.61 Ntes: 1) Taxes per sq. ft will vary frm ne prperty t anther. The abve data is prvided as an example nly. 2) Based n 2006 tax rates. Year 2007 taxes per sq. ft will be available at the end f the first quarter f year * Tax rati fr industrial/cmmercial prperty is apprximately : 15% Municipal, 25% Reginal, 60% Educatin Business Taxes Gds & Services Tax (GST) The GST Tax in Ontari is 6% n mst purchases f gds and services. All businesses with annual revenue f $30,000 r mre must register fr a GST accunt with Canada Revenue Agency. Firms with less than $30,000 annual revenue may pt t nt cllect the GST, but shuld cntact Canada Revenue Agency fr details. Fr further infrmatin, cntact: Canada Revenue Agency, 5800 Hurntari St, Mississauga ON L5R 4B4, Tel.: , Prvincial Sales Tax (PST) The Prvincial Sales Tax (PST) in Ontari is 8% n mst purchases f gds. Many service-based businesses are exempt frm charging the PST, except n labur charges t install, repair and maintain taxable gds. Cntact the Reginal Tax Office, listed belw, t determine whether r nt PST is required fr yur business. There is n charge t apply fr the Vendr (PST) Permit. Businesses wh d nt require a Vendr s Permit, and wuld like t apply fr a tax exemptin, may als apply thrugh the fllwing ffice: Reginal Tax Office, Ministry f Finance, 77 City Centre Drive, 1st flr, Mississauga, ON, L5B 1M5, Tel.: , Page 3 f 5

4 Tax Incentives Althugh, the Ontari Municipal Act expressly frbids municipalities frm ffering business any bnus r financial incentive such as tax subsidies, special land deals, lans r grants. The Ontari and Federal Gvernments d ffer a wide range f prgrams t assist business. These prgrams, which can be in the frm f lans, grants r tax credits, include training, exprt financing, and research and develpment. The Mississauga Ecnmic Develpment Office can prvide infrmatin n many f these prgrams. Federal and Prvincial R&D Incentives: Canada s federal tax incentives and Ontari prvincial tax incentives cmbined, have reduced the after tax cst f R&D expenditures significantly belw ther G-7 cuntries. The G7 cuntries cmprise f Canada, France, Germany, Italy, Japan, the United Kingdm, and the United States. The prpsed changes in the 2007 budget, listed belw, wuld drp the Marginal Effective Tax Rate (METR) n investments made in Canada in 2011 t 28.6 per cent frm 31.1 per cent, giving Canada the third-lwest METR in the G7. Actins by prvincial gvernments t eliminate capital taxes and harmnize retail sales taxes with the GST wuld lwer Canada s METR t 21.1 per cent in 2011, giving Canada the lwest METR in the G7 by a significant margin. The reductin f the general crprate incme tax rate t 18.5 per cent frm 21 per cent by 2011 Eliminating the crprate surtax fr all crpratins as f January 1, 2008 Encuraging manufacturing and prcessing businesses t make majr investments needed t respnd t the strnger Canadian dllar and rising glbal cmpetitin, the budget will allw them t write ff capital investments in machinery and equipment acquired n r after March 19, 2007, and befre 2009 using a special tw -year 50-percent straight-line rate. Increasing the capi tal cst allwance rate frm 4 t 10 per cent fr buildings used in manufacturing and prcessing, and frm 45 t 55 per cent fr cmputers. Eliminating prvincial capital tax by mid Federal capital taxes were eliminated in Reducing the business educatin prperty tax t 1.6 per cent ver seven years Prvincial and federal tax credits can cut the after-tax cst f a $100 R&D expenditure t apprximately $40. R&D expenditures in the City f Mississauga exceeded $1.8 billin in Federal R&D Tax Incentives: A 100% deductin fr R&D csts, including capital equipment. A 20% investment tax credit n scientific research and experimental develpment expenditures. The investment tax credit can ffset 100% f the federal tax payable in the year, r can be carried back 3 years r frward 20 years. Fr small sized Canadian-cntrlled private crpratins, the investment tax credit increases frm 20% t 35%, n up t the first $2 millin f R&D each year. Page 4 f 5

5 The Ontari Tax Incentives: Ontari Business Research Institute Tax Credit (OBRITC) - An additinal 20% refundable tax credit fr all Ontari cmpanies sub-cntracting qualifying business -spnsred R&D t eligible Ontari universities, clleges, research hspitals and prescribed nn-prfit research centres. Ontari Innvatin Tax Credit (OITC) A 10% refundable tax credit, with a maximum claim f $200,000 per taxatin year, fr crpratins that have expenditures n scientific research & experimental develpment (SR&ED) carried n in Ontari. Ontari Research Fund s Research Excellence (ORF) prgram is a five-year, $527 millin fund t prmte research excellence in Ontari by supprting leading-edge research; develping research talent; encuraging partnerships between research institutins and business. Ontari New Technlgy Tax Incentive (ONTTI) - An immediate 100 per cent deductin f the eligible cst f the acquisitin f qualifying intellectual prperty acquired in the curse f an intellectual prperty transfer. Retail Sales Tax (RST) Exemptin - equipment used primarily in manufacturing, exclusively fr R&D, r fr a cmbinatin f manufacturing and R&D qualifies fr exemptin frm RST. Equipment used exclusively fr research and investigatin by nnprfit medical research facilities als qualifies fr the RST exemptin. Fr cmplete infrmatin n the Federal and Ontari investment incentives, cntact: Ontari Investment Service, 161 Bay Street, BCE Place, Suite 4040, Canada Trust Twer, P.O. Bx 706, Trnt, Ontari, Canada M5J 2S1, Tel.: , Fax: , Federal and Prvincial Apprenticeship Jb Creatin Tax Credit: The Yuth Emplyment Strategy (YES), is the Gvernment f Canada's cmmitment t help Canadian yuth, between the ages f 15 and 30, get the wrk experience, knwledge; skills and infrmatin required t participate in the labur frce. The YES als assists emplyers wh hire yuth. The Natinal Research Cuncil f Canada s Industrial Research Assistance Prgram (NRC -IRAP), n behalf f YES, delivers tw yuth initiatives. The internship prgrams, lasting between six and twelve mnths, are designed t enable graduates t gain valuable wrk experience. Maximum supprt prvided will be $15,000 t help cver a part f the graduate's salary. Internship Prgram with Innvative Small and Medium Enterprises (SME s) - : Crpratins will receive financial supprt twards the emplyment f NRC apprved pst-secndary graduates, wh will wrk n technical pprtunities in the firm and n nn-technical but technlgy related prjects like: research and develpment, engineering, multi-media develpment f new prducts and prcesses market analys is fr a new technlgy-based prduct business develpment related t science and technlgy activities imprvement f custmer services, etc. Cllabrative Research Internships: Crpratins will receive financial supprt twards the emplyment f NRC apprved pst-secndary graduates, wh will help develp and market new technlgies. Fr cmplete infrmatin n the internship prgrams, cntact: NRC -IRAP, 55 St. Clair Avenue East, Suite 903, Trnt, Ontari. M4T1M2, Tel.: , Fax: , -cnrc.gc.ca/yuthinitiatives_e.html Page 5 f 5

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