The setting of property tax rates requires certain decisions and directives to be provided from City Council on an annual basis. As such, a comprehensive tax policy report and process is undertaken each year wherein each decision and directive can be fully vetted and approved. In light of recent events, Administration is providing Council with recommendations on the methodology upon which the 2020 tax rates have been determined, inclusive of the Education tax rates which were set by the Province, as well as to provide City Council with information with regard to the final billing process including the setting of instalment dates and late payment charges. Within the Discussion Section, Administration has provided much of the same background information as reported in past years to City Council with regards to the setting of property tax rates. It is acknowledge that many taxpayers will be seeking some form of property tax relief as a result of business closures and loss of employment during this period. At a later date and as a separate matter, Administration will be bring forward options for City Council to consider as it relates to potential opportunities to consider further targeted tax relief.

As noted in the Financial Matters, all of the recommended 2020 Final Tax rates have decreased from 2019. The reason for the decrease is due to 1) increases in assessment as a result of the four-year phase-in program and 2) decrease in Education rates. For the average taxpayer that has had no change in property assessment that taxpayer will have a decrease in overall property taxes when compared with their 2019 property tax bill. For the average taxpayer that have experienced an increase in property assessment as a result of the four-year phase-in program, property taxes will increase, on average, between 0.91% and 7.55%. For the average residential homeowner the increase in property assessment was 2.94% resulting in an overall average change in property taxes of 2.15% or approximately $57.73.

Given the impacts of the COVID 10 pandemic, Administration is recommending that the process for preparation and mailing of the final tax bills for 2020 be deferred by one month in order to ensure that all payments remitted by June 30, 2020 (based on the deferred deadline for interim tax payments) can be posted to taxpayer accounts prior to the issuance of the final tax bills. Preparing and printing tax bills prior to this date would result in some taxpayers receiving a tax bills that reflect an outstanding “arrears” balance in the overall tax balance due while such amount may have been paid by the June 30th deadline. Administration is also recommending amended final tax installment dates for 2020 as compared to prior years which would provide added financial relief to taxpayers however, would ensure that all property tax payments are received by December 31, 2020.

With regards to the matter of late payment charges, for various reasons as stated in this report, Administration is not recommending that there be any change to the penalty and interest rate which is applied to those payments which are not made on time. Again, Administration will be looking at options for the provision of financial relief for taxpayers as a separate matter which may or may not include relief from late payment charges. It is noted that any type of financial relief will need to be funded by way of the redirection of funds from other projects and initiatives or from the tax base as a whole.