2006 Property Assessment and Tax Analysis of 2005 Data. Prepared for Real Property Association of Canada. December 14, 2006

Transcription

1 2006 Property Assessment and Tax Analysis of 2005 Data Prepared for Real Property Association of Canada December 14, 2006 Prepared by: A division of Altus Group Limited 191 The West Mall, Suite 200 ON M9C 5K8 Tel: (416) Fax: (416)

2 PROJECT OVERVIEW Altus Derbyshire is pleased to be involved for the third 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 2005 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 2005 total assessment bases and tax levies provided in last year s survey has been updated to reflect revisions published by the municipalities. No significant changes were noted. Altus Derbyshire, a division of Altus Group Limited

3 NATIONAL ASSESSMENT AND TAX POLICIES British Columbia - Richmond, Surrey, BC Assessment Authority is responsible for assessing property (its value and classification). Valuations are performed annually as at a July 1 valuation date. Property assessment notices are mailed out on December 31. The nine classes of property are: Class 1 - Residential Class 2 - Utilities Class 3 - Unmanaged Forest Land Class 4 - Major Industry Class 5 - Light Class 6 - Business Class 7 - Managed Forest Class 8 - Recreational Property Non-Profit Organization Class 9 - Farm Land It is possible for a property with several uses to fall into more than one class. 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 2005, Calgary and Edmonton collected business taxes of $200,500,000 and $90,709,000, respectively. Altus Derbyshire, a division of Altus Group Limited

4 MANITOBA - Winnipeg The reference year for the 2005 reassessment, as established by provincial legislation, is For the purpose of calculating mill rates and taxes, municipalities use "portioned" assessment. Portioning was introduced with the amendments to assessment legislation in There are 11 property classes. Prior to market valuation, each class was assigned the same share of taxes. Through annual adjustment of the percentage assigned to certain classes of property, a more equitable sharing of taxes has been achieved. The property classes are: Residential One Residential Two Farm (Current Value) Farm (Farm Use Value) Institutional Designated Higher Education Property Pipeline Railways Designated Recreational Property (Golf) Residential Three Other Manitoba collects business taxes. business taxes. In 2005, Winnipeg collected $60,269,198 in 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, $17,9510,000 for Altus Derbyshire, a division of Altus Group Limited

5 ONTARIO - Burlington, Kingston, Mississauga, Ottawa, Property assessment notices are sent out annually to all property owners. For 2005, current values were based on a June 30, 2003 valuation date. This was updated to January 1, 2005 for 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 (June 30, 2003 for the 2005 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 parking lots or 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

6 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

7 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

8 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 2001 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

9 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 2005 taxation. For each municipality, a one page summary sheet has been provided, detailing 2005 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 for 2004: 2005 Commercial Tax Rate Residential Tax Rate = 4.97 The commercial tax rate in is 4.97 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 2005 assessment and taxation figures; - pie charts indicating the breakdown of assessment bases and tax levies. Altus Derbyshire, a division of Altus Group Limited

10 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $ ESTIMATED PROPERTY TAXES PER $1000 OF COMMERCIAL ASSESSMENT Calgary Edmonton Surrey Saskatoon Richmond Markham Burlington Mississauga Gatineau Pickering Average Halifax Laval Ottawa Kingston Montreal Winnipeg Regina St John's NL

11 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $ ESTIMATED PROPERTY TAXES PER $1000 OF RESIDENTIAL ASSESSMENT Surrey Richmond Calgary Edmonton Mississauga Markham Burlington Gatineau St John's NL Average Ottawa Pickering Halifax Laval Saskatoon Kingston Montreal Regina Winnipeg

12 Ottawa $2,500 $2,000 $1,500 $1,000 $500 $ TOTAL PROPERTY AND BUSINESS TAX LEVY PER PERSON Laval Edmonton Halifax Saskatoon Regina Average Winnipeg Richmond Calgary Montreal Kingston Pickering Mississauga Burlington Surrey Gatineau St John's

13 Pickering Surrey % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2005 RESIDENTIAL ASSESSMENT AS % OF TOTAL ASSESSMENT BASE Regina Montreal Edmonton Gatineau Mississauga Laval Average St John's NL Ottawa Kingston Calgary Burlington Richmond Halifax Markham Winnipeg Saskatoon

14 Surrey Pickering 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2005 TOTAL RESIDENTIAL TAX LEVY AS % OF TOTAL PROPERTY TAX LEVY Mississauga Richmond Saskatoon Regina Laval Ottawa Edmonton Average Kingston Winnipeg Calgary Burlington Gatineau Halifax Markham St John's NL Montreal

15 Montreal Winnipeg 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2005 COMMERCIAL ASSESSMENT AS % OF TOTAL ASSESSMENT BASE Pickering Burlington Kingston Markham Ottawa Halifax Average Mississauga Gatineau Richmond Edmonton Calgary St John's Regina Saskatoon Surrey Laval

16 Richmond 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2005 TOTAL COMMERCIAL TAX LEVY AS % OF TOTAL PROPERTY TAX LEVY Burlington Surrey Kingston Markham Gatineau Saskatoon St John's Regina Average Ottawa Mississauga Winnipeg Halifax Edmonton Calgary Montreal Pickering Laval

17 TAX RATIO COMMERCIAL TO RESIDENTIAL TAX RATES Markham Mississauga Burlington Halifax Laval Richmond Surrey Kingston Calgary Ottawa Gatineau Pickering Edmonton Montreal

18 TAX RATIOS 3 HIGHEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY YEAR Richmond 3 Richmond Richmond

19 TAX RATIO 3 LOWEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY YEAR Edmonton Pickering EdmontonPickering Gatineau Pickering Gatineau 2 Gatineau Edmonton

20 TAX RATIOS 3 HIGHEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY MUNICIPALITY Richmond

21 TAX RATIO 3 LOWEST COMMERCIAL TO RESIDENTIAL TAX RATIOS BY MUNICIPALITY Edmonton Pickering Gatineau