Historically Administration has recommended that interim property taxes be levied in order to generate sufficient working capital to fund operations until the 2021 Operating Budget is approved and 2021 tax rates are established.
The interim tax by-law also provides for the due dates/instalments upon which payment will be required and for the application of late payment charges should payment not be received on time.
Discussion:
Amount of interim levy
Pursuant to the Act, where interim property taxes will be levied, the amount of the levy must not exceed 50% of the total amount of tax raised in the previous year (inclusive of both municipal and education taxes). Historically, Administration has recommended that Council establish the interim levy amount to be exactly 50% of the prior year total. Based on 2020, the total estimated amount to be levied for the 2021 interim property tax bill is $214,132,000:
Municipal | $182,763,000 |
Education | 31,369,000 |
Total | $214,132,000 |
The amount collected for Education taxes are levied on behalf of the Province and are required to be paid to each of the four respective school boards on a quarterly basis. The first payment, due in March 2021 is calculated at one-quarter of the 2020 levy.
Impact of the annual Assessment Value Update
Every four (4) years in Ontario property owners receive information from the Municipal Property Assessment Corporation (MPAC) related to the Current Value Assessment (CVA) of their property. The most recent assessment cycle is based upon market values on or around January 1, 2016 (the previous market value date was January 1, 2012). Increases in CVA from the previous cycle are phased-in gradually over a four (4) year period. Decreases and/or no changes in CVA from the previous cycle take effect in full immediately in the first year. Property taxes are levied annually based on the CVA applicable for the year and property tax rates.
As a result of recent events, the Province has placed a hold on the next assessment update which was scheduled to begin in 2021 with property values reflecting a January 1, 2019 date. For purposes of 2021 property taxes, CVA values will reflect the same value as used for purposes of calculating 2020 property taxes.