Municipality of Chatham-Kent Finance, Budget and Information Technology Services Financial Services To: From: Mayor and Members of Council Gord Quinton, MBA, CPA, CGA Director, Financial Services Date: April 11, 2016 Subject: Tax Policy 2016 Recommendations It is recommended that: 1. The Broad Class Tax Transition Ratio for Industrial Property be lowered from 2.2159 to 2.1610 with the revenue shortfall offset through a tax rate adjustment to all property classes. 2. All other Tax Ratio policies remain unchanged from 2015 decisions. 3. A by-law to establish capping policies for certain Commercial, Industrial & Multi- Residential properties for the 2016 taxation year at 10% be approved. 4. A by-law to set tax ratios for prescribed property classes for Municipal purposes for the 2016 taxation year be approved. Background This report is intended to establish tax policy for 2016. The impacts of recommended changes to the Industrial transition ratio is identified for information purposes. All numbers are approximate and do not include the education levy unless indicated. Reassessment occurred January 1, 2012 for implementation in the years 2013-2016. The impact of this reassessment is that increases are phased-in over four years, 2016 being the fourth year. Assessment reductions were implemented immediately in 2013. This causes a greater negative effect on the assessment base early in the phase-in which results in an upward push on tax rates in 2013. A reverse of this occurs in 2014-2016 as there is more assessment each year to spread the tax levy across. Attachment A demonstrates the number of properties in each class experiencing increases or decreases in their assessments.
Tax Policy 2016 2 Comments As at January 2016, weighted assessment increased 2.0% over 2015 (see Table 9, column 4). This increase in assessment is primarily due to the phased in increases in assessment, assessments on new construction, and decreases from recent Assessment Review Board (ARB) decisions. While reassessment is revenue neutral to the Municipality as a whole, it does shift the burden of taxation between classes. Looking at weighted assessment, classes including Residential, Farmland, Industrial, Commercial, Parking Lots and Pipelines increased. Office building, Large Industrial, Shopping Centres, and Multi-Residential assessment decreased. Since the Municipality does not profit from Current Value Assessment (CVA) changes, the overall tax rate lowers to compensate for the increase in total assessment. There are several tax policy implications that determine the final tax bill of each property. Provincial regulations dictate some of the shifts in taxation and Council direction dictate others. Table 1 reflects the recommendations of this report on each class. It begins with the 2015 billed tax levy, illustrates the effect of each policy, and totals to the proposed 2016 tax levy. Table 1 : 2016 Tax Policy Chart Class Adjusted 2015 Levy Social Housing & St. Clair College Residence 1 Assessment Change Recommended Lower Industrial Tax Ratio Assessment Growth Budget Change 7,047,968 (37,891) (866,086) (11,127) 6,335 8,223 117,607 Residential Pipeline 1,560,350 (11,646) 7,445 21 1,768 2,478 35,325 Residential 87,988,318 (593,536) 586,083 4,763 95,130 569,185 1,730,634 Farm 9,536,584 (81,605) 810,090 12,186 12,073 32,328 239,719 TOTAL 139,116,754 (942,835) 0 0 0 1,000,000 2,750,094 Class 2016 Levy % Change before Assessment Growth % Change After Assessment Growth Education Change 2016 Tax Levy (including Education Reduction) Total % Change Before Assessment Growth Total % Change After Assessment Growth Capping Redistribution Commercial 27,060,872 (172,909) (536,200) (5,660) 28,017 353,046 495,607 Industrial 5,922,662 (45,248) (1,332) (183) (143,323) 34,740 131,202 Multi- Commercial 27,222,773 (0.71)% 0.60% (214,453) 27,008,320 (1.50)% (0.19)% Industrial 5,898,518 (0.99)% (0.41)% (7,874) 5,890,644 (1.13)% (0.54)% Multi- Residential 6,265,029 (11.23)% (11.11)% (58,221) 6,206,808 (12.05)% (11.93)% Pipeline 1,595,741 2.11% 2.27% 1,980 1,597,721 2.24% 2.40% Residential 90,380,577 2.07% 2.72% (143,332) 90,237,245 1.91% 2.56% Farm 10,561,375 10.41% 10.75% 110,642 10,672,017 11.57% 11.91% TOTAL 141,924,013 (311,258) 141,612,755 1 Council approved designating municipal owned Social Housing residences as Municipal Capital Facilities exempting them from $1,053,835 of taxation. Council approved granting the St. Clair College Residences $111,000 of taxation in 2009 and the property was assessed in 2015.
Tax Policy 2016 3 As demonstrated above, there has been an increase in the taxes allocated to the Residential, Farm and Pipeline classes with the reduction to the Industrial, Commercial and Multiresidential classes. The increase to the Farmland class is primarily a result of re-assessment. The Residential class growth and Multi-residential class decrease is mostly a result of a shift in assessment from Multi-residential to Residential as a building converts from apartments to condominiums along with new residential units built. There was an increase in education tax paid by Farmland properties and Pipelines due to their increased assessments with Residential, Multi-residential, Industrial and Commercial classes seeing decreased education tax due to the education rate reduction. The assessment shifts and a small decrease in education rates, along with the 1.99% budget increase and the recommended Industrial ratio change, has resulted in less being paid by Industrial, Commercial and Multi-residential and increases to Residential, Farm and Pipeline. The most significant increase is to the Farmland Class, mainly as a result of greatly increasing land sale prices over the last few years being reflected in the January 1, 2012 assessments. This increase will continue for the years 2013-2016 as the increases are phased in. Further increases in assessment are expected in the upcoming 2016 re-assessment. Table 2 below illustrates the average impact of the recommendations on a typical residential property. Table 2 : Average Municipal Tax Change Impact on a Typical Home 2015 Municipal taxes (house value $161,376) 1 $2,680.45 Effect of re-assessment 2 17.85 Capping revenue shortfall redistribution 3.15 Budget increase 4 52.72 Social Housing 5 (20.21) St Clair College 6 2.13 Lower Industrial Tax Ratio 2.5% 7 2.90 2016 Municipal Tax ( house value $162,183 2,735.99 Education Change (4.37) 2016 Total Tax 2,731.62 1 An average house valued at $161,376 in 2015, paid $2,680 in Municipal taxes. 2 The effect of re-assessment was a decrease in Multi-Residential and Commercial and an increase in Industrial, Residential and farmland. The net effect of this shift is an increase on our average property of $17.85 3 One large property in the commercial sector has increased dramatically in value. The Municipality can increase Current Value Assessment related taxes by only 10% per year, leaving a significant amount of assessment untaxed. Overall, weighted assessment is reduced accordingly to reflect only that on which taxes can be levied. The net effect is a revenue shortfall in the commercial class that is shared on a pro rata basis by all other taxpayers. There has only been a slight redistribution impact on our average property of a increase of $0.15. 4 The budget increase approved by Council was 1.99%. When applied to the weighted assessment the impact on our average house is an increase of $52.72. 5 The social housing facilities were deemed Municipal Facilities and are now being fully assessed. 6 The St Clair College Residence municipal rebate as per Council s decision when the residence was being built in 2009. MPAC only began assessing the property in 2015 retroactive to 2013. 7 The lower Industrial tax ratio recommended by administration has an impact of 2.90 being funded by the education reduction of $4.37
Tax Policy 2016 4 Note that an average house went up in value $807 and is billed $51.17 more in taxes. With all the recommendations, assessment, and education rate changes taken into account, this is an approximately 1.91% increase and slightly less than the $52.72 or 1.99% budget increase approved by Council in February. The following tax policy considerations each have a bearing on how much taxes an individual class pays: 1. Transition Ratios Transition ratios are used as a tax policy tool by Council to weight assessment. The higher the transition ratio is, the higher the assessment weight and the greater the relative tax burden. The Residential class is weighted at 1.0 by Provincial policy. Commercial pays almost twice the tax of Residential on the same value of property. Farmland is currently assessed at 22% of the Residential rate. Due to concerns regarding Municipal competitiveness, Council in 2009 lowered the large Industrial transition ratio from 2.9270 to the standard Industrial transition ratio of 2.4350 following input from Economic Development to entice manufacturers to locate in Chatham-Kent. In 2015 Council lowered both the standard Industrial and large Industrial from 2.4350 down to 2.2159 and the Commercial broad class transition ratio from 1.9765 to 1.9646 to further enhance the competitiveness of Chatham-Kent s tax rates to attract more investment to our communities. Administration is recommending a further 2.5% tax ratio reduction in the standard Industrial and Large Industrial classes that will lower the ratio from 2.2159 to 2.1610. It should be the goal of Council to continue to lower the Industrial ratios down to the Commercial ratio level prior to considering lowering the Commercial ratio itself, as attracting new Industrial employers will provide the most effective tax incentive to attract jobs and total assessment. Table 3 illustrates the 2015 class tax ratios and that of a few of our surrounding municipalities for comparison. As illustrated, Council is on its way to achieving a very competitive Industrial ratio that will benefit Economic Development campaigns. Table 3: 2015 Class Ratio Comparison Municipality Commercial Industrial Chatham-Kent 1.9504 2.2159 Lambton 1.6271 2.0476 London 1.95 1.95 St. Thomas 1.9475 2.2281 Windsor 2.0027 2.3384 Table 4 is included to demonstrate the impact of tax policy decisions for Commercial / Industrial on the Residential class, in addition to the shift resulting from the recommended ratio changes. For example, a further 1% shift to Residential taxes raises enough funds to lower Commercial taxes 3.24%, or would lower Industrial taxes 14.61%, or would enable a combined Commercial and Industrial reduction of 2.65%. The second section of Table 4 illustrates the dollar effect on properties in each class assessed at $100,000.
Tax Policy 2016 5 Table 4 % Tax Effect of Residential Tax Burden Increase on Other Classes Class 0.5% 1% 1.5% 2% 2.5% Commercial (1.62)% (3.24)% (4.86)% (6.49)% (8.11)% Industrial (7.30)% (14.61)% (21.91)% (29.22)% (36.52)% Combined (1.33)% (2.65)% (3.98)% (5.23)% (6.63)% $ Effect of Residential Tax Burden Increase Based on $100,000 Assessment Original Municipal Class Tax 0.5% 1% 1.5% 2% 2.5% Residential 1,669.07 8.35 16.69 25.04 33.38 41.73 Commercial 3,255.36 ( 52.78) ( 105.56) (158.34) ( 211.12) ( 263.90) Industrial 3,698.49 ( 270.13) ( 540.26) (810.39) (1,080.52) (1,350.65) Combined 3,476.93 ( 46.13) ( 92.26) (138.39) ( 184.53) ( 230.66) Assumptions: * Includes only the Municipal component of Tax, Assessed value of $100,000 * All tax calculations based on broad class transition ratios * All calculations based on Chatham Tax Rates and Tax Classes * All other tax classes including Farmland are not effected * Optional tax class ratios move in direct proportion with the broad class ratio * Capped class transition ratios can be lowered but not raised without Provincial consent. Any further change in either the Industrial or Commercial ratio will result in an immediate upward effect on the Residential, Multi-residential and Farm tax base. Administration obtains Farm tax rate information from bordering rural municipalities. Table 5 illustrates that a hypothetical farm property with an assessment of $500,000 would generate the following municipal taxes (excluding School Board): Table 5 : Farm Taxes Based on $500,000 Assessment (2015 taxation) Chatham-Kent Difference St. Clair Township 1,244 173 Dawn-Euphemia 1,298 119 Southwest Middlesex 1,357 1,417 60 West Elgin 1,532 (114) Leamington 1,739 (322) Lakeshore 1,267 151 Based on the above survey, Chatham-Kent farm tax rates are somewhere in the middle when compared to surrounding jurisdictions. Farms in the south of Chatham-Kent pay less in taxation than the neighbouring municipalities to the east and west. Farms in the north of Chatham-Kent pay more than their neighbouring municipalities to the north. It is noted that all neighbouring municipalities have a farm ratio of 25%, the maximum allowed, whereas Chatham-Kent s farm ratio is currently 22%.
Tax Policy 2016 6 Table 6 shows the effect of a 1% rise in the Farm transition ratio on municipal taxpayers as a whole, as well as the impact on our hypothetical Residential property valued at approximately $160,000. A 1% reduction in the ratio to 21% would have a similar opposite effect. Table 6 : Impact on Tax Burden from an Increase in the Farm Class Transition Ratio from 22% to 23% of the Residential Rate Farm at Farm at 22% 23% Aggregate 10,287,051 10,699,973 412,922 Farm property assessed at $500,000 Tax Shift Impact on $160,000 residential unit 1,361 1,416 55 (8) * Calculation based on 2016 assessment, 2015 budget, Community of Dover area * Municipal levy only The Farm transition ratio is currently at 22%, down from 25% a number of years ago. Council lowered the ratio twice in the mid 2000 s due to low cash crop commodity prices and the economic outlook for farmers. In the last five to ten years the economic conditions have improved and have been reflected in the large increase in farm sale prices captured in the January 1, 2012 reassessment. Council can lower the ratio or increase the ratio to a maximum of 25% should it wish to do so. No changes are being recommended in this report to the Farm ratio as this issue was discussed extensively during the 2013 budget deliberations and due to the large increases in assessment currently being phased in from 2013-2016. It should be noted that Elgin County Council in 2015 considered an Ontario Federation of Agriculture proposal to lower its farm ratio but came to the conclusion that it was not necessary to pass a larger burden to other businesses and residents. Administration will analyze the upcoming 2016 reassessment results and bring recommendations for Council to consider to achieve a phase-in back to the 25% provincial standard across the province in the fall of 2016.
Tax Policy 2016 7 Table 7 below illustrates the transition ratios recommended by administration for 2016. Table 7 : Transition Ratios Recommended for 2016 Class 2000 Municipal Transition Ratio 2015 Municipal Transition Ratio 2016 Municipal Recommended Transition Ratio Broad Class Transition Ratio Prescribed Residential 1.0000 1.0000 1.0000 No Pipelines 1.2742 1.2742 1.2742 Prescribed Farm Land 0.2500 0.2200 0.2200 Transition ratio Multi-Res 2.1488 2.1488 2.1488 2.7400 Commercial 2.0106 1.9504 1.9504 Residual Office Space 1.6204 1.5718 1.9646 1.5718 1.9645 1 1.9800 Shopping 2.3207 2.2512 2.2512 Centre Parking Lots 1.3455 1.3052 1.3052 Industrial 3.2018 2.2159 2.1610 Large Industrial 3.8480 2.2159 2.2159 2.1610 2.1610 2 2.6300 The Province prescribes maximum transition ratios using a range of fairness and restricts municipalities to pass budget increases to classes with ratios above this amount. All Chatham-Kent transition ratios are below those prescribed and so all classes of property share in the budget increase. The year 2000 transition ratios are included to show where tax ratios have changed over the last several years. Significant decreases have been made to Commercial and Industrial classes over this time period. 2. Maximum CVA-related Tax Increases Be Set At 10% Industrial, Commercial and Multi-Residential (capped classes) properties are protected from significant swings in taxation under section 329.1 of the Municipal Act, 2001. Under the Act, assessment related increases are limited to 10% unless a higher percentage is chosen by Council and specified by by-law. Under the same section, Council may elect to eliminate the cap on any property that is within $500 of its correct levy (tax rate x assessment = correct levy). 1 Chatham-Kent Broad Class Transition Ratios As long as transition ratios used by a municipality are below those prescribed by the Province, municipal tax policy is in compliance. Shopping Centres have the highest transition ratio within the commercial property class at 2.25 times the residential rate. The 2015 BMA study ranks the Chatham-Kent commercial shopping centre tax burden as slightly into the high at $2.68/square foot in comparison with other South Western Ontario municipalities using the same property class. Burdens per square foot range from 50 in Saugeen Shores to $3.37 in Ottawa. The overall average of those participating in this study was $1.90 2 Industrial is the highest taxed property class in CK with a rate 2.22 times the residential rate. High taxation rates combined with relatively low property values result in average municipal taxes per square foot of $1.17. The 2015 BMA study ranks Chatham-Kent industrial tax burden as mid in comparison with other South Western Ontario locations. Burdens per square foot range from 21 in Meaford to $1.47 in Oakville.
Tax Policy 2016 8 Administration is recommending the maximum assessment-related tax increase on capped classes, being 10% permitted by legislation, be maintained as well as maintaining eliminating the cap on any property that is within $250 of its correct levy (no change from 2015). Administration is analyzing the elimination or phasing out of the capping program as its benefit has been diminished over the years, and will bring a further report to Council prior to the 2017 Tax Policy report. This decision does not change the amount of revenue collected by the Municipality. It moves the tax burden more quickly from those properties that are overpaying to those that are not paying enough as determined by their current assessment. Council moved the tax cap up from 5% in 2005 once the legislation was changed. A number of Commercial/Industrial properties had assessment increases in 2012 above 10% which underscores the importance of capping legislation as a mitigation tool at the time. Maintaining the cap at 10% for 2016 meets the following objectives: moves properties more quickly toward their correct tax contribution maintains the phase-in and capping option to be applied in future as required to deal with future tax changes reduces the number of properties paying taxes in excess of those normally owing on the basis of assessment improves the transparency and equity of the tax system In 2008, reassessment increased a single commercial property value in Chatham-Kent by $60 million. That property has decreased to $45 million with the 2012 reassessment. This property is protected from a significant tax increase by the tax capping legislation. This situation was confirmed by MTE, a municipal tax consultant specializing in recent legislative issues. The revenue shortfall caused by capping will result in the clawing back of all assessment related tax reduction anticipated by qualifying commercial property owners. 3. Specific Property Tax Protection and Assessment Issues There are two specific issues in 2016 that are causing a shift in taxation in Chatham-Kent. They are detailed in this section of the report and summarized in the chart below: Table 8: Tax Protection and Assessment Issues 2015 2016 Tax Claw Back 670,000 670,000 Tax Capping Unique Case 1,130,000 1,130,000 Total 1,800,000 1,800,000
Tax Policy 2016 9 Claw Back Level 1 As a consequence of capping increases to protected classes, there is a deficiency within each property class. Council can recover costs from within the same class, or recover costs from the general levy, or both as was done in 2015. Administration is recommending continuing this funding program for 2016 similar to 2015 and it is expected that approximately 90% of the claw backs will be funded at a cost of $670,000 to the general levy. As in prior years, any property within $250 of its correct tax will be moved immediately. Non Taxable Commercial Capping Unique Case 2 As mentioned above, Chatham-Kent has a single commercial property that had a 2008 assessment that increased to $60 million and a subsequent 2012 assessment which decreased it to $45 million. It is capped creating a 2016 revenue cumulative shortfall of roughly $1,130,000, similar to 2015. The property is currently appealing its 2008 assessment. The Province and MPAC have also developed a working group to study this industry s assessment methodology Province-wide and come to a resolution within the next year. 4. 2016 Assessment Roll The assessment roll, delivered in December 2015, is for 2016 taxation. New construction increases the assessment value of the roll. Assessment Review Board decisions and Reconsiderations lower the value of assessment on the roll. Reassessment increases reflecting market values as at January 2012 as phased in over 2013 2016, along with new assessment minus assessment reductions resulted in an increased taxable weighted assessment for 2016 by 2% as illustrated in Table 9. Administration estimates that taxation from building activities increased by approximately $1,000,000. This $1 million was included in the budget as new tax revenue. Chatham-Kent has always treated CVA adjustments as revenue neutral. CVA related tax revenue increases are offset by the tax rate decreases so that the total revenue collected from properties remains constant. Increased revenues occur when new buildings are constructed or improved and when Council increases its budget requirements. The treatment of this issue is consistent with past years and is in line with the current budget process. 1 Revenue shortfalls created by setting a maximum 10% increase on capped properties are clawed back from other properties in the same class by limiting assessment related tax reductions. Council recognized the claw back as inequitable and, from 2004 to 2013, raised $670,000 annually to reduce the impact of the claw back. The $670,000 represented taxes that were shifted from one class to another. Capped class claw backs were funded at about 100% in 2008, 85% in 2009, and 30% in 2010, 60% in 2012, 30% in 2013, 50% in 2014, and 80% in 2015. It was suspended for 2011 and depending on final education rates we anticipate this program for 2016 being at a rate of approximately 90%. 2 $89 million in weighted assessment is not subject to taxation due to the tax cap. Taxes raised to cover a capping shortfall does not represent a tax increase but rather a tax burden shift.
Tax Policy 2016 10 Table 9 : Weighted Assessment Changes Average Class-Wide Non Net Weighted Assessment Changes % Taxable Net % from 2015 2016 Change Capping or Change Change 2015 2016 Rebates Commercial 1,458,612,077 1,466,510,731.54% (89,079,789) (81,181,135) (5.57)% ) Office 32,736,328 32,728,507 (.02)% - (7,821) (.02)% Parking Lots 1,724,300 1,908,333 10.67% - 184,033 10.67% Industrial 323,802,690 331,208,999 2.29% - 7,406,309 2.29% Large Industrial 86,011,740 85,902,167 (.13)% - (-109,573) (.13)% Shopping Centre 244,686,252 241,339,473 (1.37)% - (3,346,780) (1.37)% Multi Residential 434,203,620 383,825,650 (11.60)% - (50,377,969) (11.60)% Pipelines 115,566,669 117,983,275 2.09% - 2,416,606 2.09% Farmland 747,323,630 826,946,743 10.65% - 79,623,113 10.65% Residential 5,869,897,701 6,012,217,522 2.42% - 142,319,822 2.42% Average 9,314,565,006 9,500,571,400 2.00% (89,079,789) 96,926,604 1.04% Fire and Police Area Rated Services It was requested by the previous Council for administration to illustrate in this report what the area-rated charges were for Fire and Police. Table 10 below presents the cost per $100,000 of residential assessment. It should be noted that assessments are generally higher in urban centres on similar structures because of other amenities such as access to sidewalks, transit, water and sewers. Administration costs are pro-rated to both rural and urban areas. Table 10 : Emergency Services Area Rated Charge per $100,000 Residential Assessment Police Rural $221.12 Urban and Urban Fringe $383.55 Fire Rural $81.92 Urban and Urban Fringe $230.12 Council Directions The recommendations in this report support the following Council Directions: Jobs: Everyone in Chatham-Kent who wants to work is able to work in meaningful employment
Tax Policy 2016 11 Consultation People: Chatham-Kent is a welcoming community where people choose to live, learn, work, and play Health: Chatham-Kent is a healthy, active, safe, accessible community within a healthy natural and built environment Financial Sustainability: The Corporation of the Municipality of Chatham-Kent is financially sustainable Has the potential to support all Council Directions Neutral issues (does not support negatively or positively) Economic Development Services was consulted in relation to Industrial tax ratios, and support the recommended reduction to the Industrial ratios. MPAC provided assessment data. All calculations are done in-house. Financial Implications Tax policy is an integral part of the annual municipal taxation process. It determines which property classes fund what portion of the overall tax levy. The tax policy by-laws require Council approval in order to establish the tax rates necessary for budgetary requirements of Chatham-Kent and its boards, commissions and agencies. Prepared by: Reviewed by: Gord Quinton, MBA, CPA, CGA Director, Financial Services Mike Turner, CPA, CMA Chief Financial Officer, Treasurer Attachment(s): A - Property Assessment Changes By-law 2016 Tax Ratios By-law Maximum Tax Increases c. Michael Burton, Director, Economic Development Services Stuart McFadden, Deputy Director, Economic Development Services MPAC Ministry of Municipal Affairs and Housing P:\RTC\F&PS\Finance\2016\RTC016 - Tax Policy 2016.docx
ATTACHMENT A Number of Properties by Class % Change Residential Commercial Industrial L Industrial Multi Res Farm Pipeline From To Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent -90% -99% 209 0.51% 71 2.50% 18 3% 0 0.00% 20 11.63% 119 1.38% 0 0.00% -80% -89% 18 0.04% - 0.00% - 0% 0 0.00% 0 0.00% 0 0.00% 0 0.00% -70% -79% 18 0.04% 2 0.07% - 0% 0 0.00% 0 0.00% 1 0.01% 0 0.00% -60% -69% 9 0.02% 2 0.07% - 0% 0 0.00% 0 0.00% 1 0.01% 0 0.00% -50% -59% 16 0.04% 2 0.07% 1 0% 0 0.00% 0 0.00% 0 0.00% 0 0.00% -40% -49% 19 0.05% 1 0.04% 2 0% 0 0.00% 0 0.00% 2 0.02% 0 0.00% -30% -39% 19 0.05% 7 0.25% - 0% 2 10.53% 0 0.00% 4 0.05% 0 0.00% -20% -29% 90 0.22% 8 0.28% 1 0% 1 5.26% 1 0.58% 0 0.00% 0 0.00% -10% -19% 55 0.13% 17 0.60% 1 0% 2 10.53% 2 1.16% 2 0.02% 0 0.00% -5% -9% 47 0.11% 14 0.49% 2 0% 0 0.00% 2 1.16% 5 0.06% 0 0.00% 0% -4% 105 0.26% 13 0.46% 3 0% 1 5.26% 0 0.00% 5 0.06% 0 0.00% 0% 0% 15,334 37.35% 1,597 56.17% 201 28% 10 52.63% 37 21.51% 33 0.38% 2 5.26% 0% 4% 21,207 51.66% 810 28.49% 70 10% 1 5.26% 77 44.77% 105 1.22% 36 94.74% 5% 9% 2,230 5.43% 147 5.17% 357 50% 1 5.26% 23 13.37% 2537 29.44% 0 0.00% 10% 19% 898 2.19% 74 2.60% 41 6% 0 0.00% 4 2.33% 5592 64.89% 0 0.00% 20% 29% 192 0.47% 15 0.53% 3 0% 0 0.00% 0 0.00% 55 0.64% 0 0.00% 30% 39% 57 0.14% 3 0.11% 2 0% 0 0.00% 2 1.16% 22 0.26% 0 0.00% 40% 49% 34 0.08% 6 0.21% - 0% 0 0.00% 0 0.00% 2 0.02% 0 0.00% 50% 59% 25 0.06% 2 0.07% - 0% 0 0.00% 0 0.00% 3 0.03% 0 0.00% 60% 69% 18 0.04% 1 0.04% - 0% 0 0.00% 1 0.58% 2 0.02% 0 0.00% 70% 79% 10 0.02% 2 0.07% 1 0% 0 0.00% 0 0.00% 2 0.02% 0 0.00% 80% 89% 16 0.04% - 0.00% - 0% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 90% 99% 3 0.01% - 0.00% - 0% 0 0.00% 0 0.00% 2 0.02% 0 0.00% > 100% 149 0.36% 6 0.21% 1 0% 1 5.26% 0 0.00% 5 0.06% 0 0.00% New 272 0.66% 43 1.51% 12 2% 0 0.00% 3 1.74% 118 1.37% 0 0.00% Totals 41,050 100% 2,843 100% 716 100% 19 100% 172 100% 8,617 100% 38 100%
CORPORATION OF THE MUNICIPALITY OF CHATHAM-KENT BY-LAW NO. -2016 A by-law to Set Tax Ratios for Prescribed Property Classes for Municipal Purposes for the 2016 Taxation Year WHEREAS it is necessary for the Council of The Corporation of The Municipality Of Chatham-Kent, pursuant to Section 308 of the Municipal Act, 2001, to establish the tax ratios for the Municipality; AND WHEREAS the tax ratios determine the relative amount of taxation to be borne by each property class and are a component of tax policy; AND WHEREAS the property classes have been prescribed by the Minister of Finance pursuant to Section 7 of the Assessment Act, R.S.O. 1990, c. A.31, as amended (hereinafter referred to as the Assessment Act ); NOW THEREFORE the Council of The Corporation of the Municipality of Chatham-Kent hereby enacts the following: Assess Tax Vacancy Type Description Ratio Factor C1 Comm Farmland Awaiting Development 1 1.0000 0.25 C4 Comm Farmland Awaiting Development 11 1.9504 0.25 CH Comm Occupied/Hydro 1.9504 1 CT Comm Occupied 1.9504 1 XT Comm ( New Construction) 1.9504 1 CK Comm Vacant Units & Excess Land/ Hydro 1.9504 0.7 CU Comm Vacant Units & Excess Land 1.9504 0.7 XU Comm ( New Construction) Excess Land 1.9504 0.7 CJ Comm Vacant Land\Hydro 1.3052 1 CX Comm Vacant Land 1.3052 1 XX Comm ( New Construction) Vacant Land 1.3052 1 DH Office Buildings Occupied/ Hydro 1.5718 1 DT Office Buildings Occupied 1.5718 1 YT Office Buildings ( New Construction ) 1.5718 1 DU Office Buildings Vacant 1.5718 0.7 YU Office Buildings ( New Construction ) Excess Land 1.5718 0.7 FT Farmlands 0.2200 1 GT Parking Lot 1.3052 1 I1 Industrial Farmland Awaiting Development 1 1.0000 0.25 I4 Industrial Farmland Awaiting Development 11 2.1610 0.25 IH Industrial Occupied/ Hydro 2.1610 1 IT Industrial Occupied 2.1610 1 JT Industrial ( New Construction ) 2.1610 1 IK Industrial Vacant Units & Excess Land/Hydro 2.1610 0.65 IU Industrial Vacant Units & Excess Land 2.1610 0.65 JU Industrial ( New Construction ) Excess Land 2.1610 0.65 IX Industrial Vacant Land 2.1610 0.65 IJ Industrial Vacant Land\Hydro 2.1610 0.65 JX Industrial ( New Construction ) Vacant Land 2.1610 0.65 LT Large Industrial Occupied 2.1610 1 KT Large Industrial ( New Construction ) 2.1610 1 LU Large Industrial Vacant Units & Excess Land 2.1610 0.65 KU Large Industrial ( New Construction ) Excess Land 2.1610 0.65 MT Multi-Residential 2.1488 1 PT Pipelines 1.2742 1 R1 Residential Farmland Awaiting Development 1 1.0000 0.25 R4 Residential Farmland Awaiting Development 11 1.0000 0.25 RH Residential & Farm/Hydro 1.0000 1 RT Residential & Farm 1.0000 1 ST Shopping Centre Occupied 2.2512 1 ZT Shopping Centre ( New Construction ) 2.2512 1 SU Shopping Centre Vacant & Excess Land 2.2512 0.7 ZU Shopping Centre ( New Construction ) Excess Land 2.2512 0.7 TT Managed Forests 0.2500 1
1. This By-law shall come into force and take effect upon finally being passed. FINALLY PASSED this 18 th day of April, 2016. SIGNED SIGNED MAYOR-Randy R. Hope CLERK-Judy Smith
CORPORATION OF THE MUNICIPALITY OF CHATHAM-KENT BY-LAW NO -2016 A by-law to establish maximum tax increases for certain Commercial, Industrial & Multi-Residential properties for the 2016 taxation year WHEREAS Part IX of the Municipal Act, 2001, places limitations on taxes for certain property classes. AND WHEREAS property in the commercial classes, the industrial classes and the multi residential class apply to this part, said classes referred to hereinafter as capped classes. AND WHEREAS under section 330(1) of the Municipal Act Council may establish a percentage by which tax decreases are limited for a taxation year to recover all or part of the revenues forgone by placing limitations on tax increases for certain property classes. NOW THEREFORE the Council of the Corporation of the Municipality of Chatham-Kent hereby enacts the following: 1. All reassessment related tax increases and decreases be put in place for 2016 to a maximum increase, in the case of capped classes, of ten percent (10%) as calculated in accordance with the Act. 2. That, after the application of the 10% in #1 above, those properties with a remaining tax cap of $250 or less, have the tax cap removed. 3. Where a property has a tax reduction withheld of $250 or less after the application of calculations established under Section #4, that the tax reduction withheld be reduced to zero. 4. That capping increases above ten percent (10%) be financed first by limiting tax decreases to all properties within the same capped class and then from all property classes, as part of the general tax rate, through the application of a single percentage such as the effect on each property class and on the Municipality as a whole does not exceed $670,000. 5. That Business Improvement Area levies are separate and apart from commercial and industrial levies and are not subject to the tax limits in this bylaw. 6. That any area rated levy, local improvement, water, drainage or other charge being increased or decreased in 2016 shall be a budgetary change and not subject to the taxation limits in this bylaw. This By-law shall come into force and take effect upon finally being passed. FINALLY PASSED this 18 th day of April, 2016. SIGNED MAYOR-Randy R. Hope SIGNED CLERK-Judy Smith