For Windsor, the optional class of parking lot/vacant commercial land has been maintained and a separate rate (approximately 50% of the commercial occupied rate) is set for this class each year. Therefore for purposes of this section, the discount factor is applied only to the following sub-classes:
Excess commercial land
Vacant industrial/large industrial land
Excess industrial/large industrial land
For clarity, the foregoing discussion relates to vacant land not vacant buildings. The related policy issue of vacancy rebates for vacant buildings was presented to City Council on April 1, 2019 (C32/12019) for direction. Administration is currently working on a submission to the Minister of Finance with regards to the full elimination of the vacancy rebate within Business Improvement Areas. That submission is currently on hold as a result of recent events.
THAT Administration retain a blended rate of 30% as the discount on excess commercial and vacant and excess industrial land.
New Construction
Historically, newly constructed properties in the business classes (not residential) were afforded a discount in terms of the rate of tax that would be applied. In 2005, City Council established a minimum tax level for comparable property of 70% and that threshold has been increased by 10% per annum for each year thereafter until 2008 when it reached 100%. City Council must reconfirm annually its intent to maintain this threshold at 100% to ensure that all new construction taxes are calculated on the property’s full value.
THAT the Municipality SET the threshold on the tax level for eligible new construction at 100%.
Establishment of Tax Ratios and 2020 Tax Rates
Tax Ratios
Tax ratios are one of the most complex and significant decisions in the process for establishing tax rates. Tax ratios reflect the relationship that the tax rate, for each of the seven main property classes and optional classes, bears to the residential property class. Tax ratios, when applied to the tax class assessment, results in a weighted assessment. It is this weighted assessment that is then used within a mathematical formula to calculate the tax rates for each class. Tax ratios therefore assist in the determination as to how much of the municipal levy will be paid by each tax class.