Annually City Council may choose to maintain the existing discount percentages, or alter the percentage discount applied to one or both subclasses of FAD by 10%. Although there can be a change to the reduction rates of 10% per year, there is no identified need at this time to alter the present rates of reduction.
THAT tax reductions for the first and second sub-classes of farmland awaiting development BE RECONFIRMED at their present level of 65% and 30% respectively.
2. Excess Commercial and Industrial Excess and Vacant Land
Excess land is generally attached to and included with occupied lands. The excess land component is defined as areas that exceed that which would typically be required for the occupied operations. For example, a commercial plaza needs, and is expected to, extend over a minimum amount of land for purposes of a building and parking to conduct operations. Should there be land “in excess” of what is required, that land is valued and classified as excess land. The property owner received a tax bill that reflects both the occupied and excess land classifications
Prior to 2017, Municipalities were required to establish a policy to reduce the tax burden on vacant/excess commercial and industrial land. The requirement was put into place to maintain the tax differences between occupied and non-occupied land, which existed prior to 1998. Residential and multi residential properties are not eligible for a vacancy rebate. The Municipal Act, set out default reductions rates of 30% for the commercial classes and 35% for the industrial classes, however, a municipality may adopt a uniform rate at any level between 30% and 35%. For the 2017 tax year, Council elected the uniform rate of 30%. In other words, tax rates applied to unoccupied commercial and industrial vacant and excess land is 30% less than the rate applied to fully occupied commercial and industrial properties.
In 2017, the Province announced changes to legislation that would allow municipalities to make requests for changes to this program as part of the vacancy program rebate review. Council therefore has the ability to phase out or eliminate reductions granted to vacant and excess commercial and industrial land. Those municipalities who have made the decision to phase out or eliminated reductions were identified to Council as part of Administration’s report C32/2019. Any change for Windsor would require Ministerial consent and therefore would not be able to be implemented until 2021 or later. For reasons outline within the report Administration is not recommending that any changes to the discounts rates be made this year.