Financial Impact on Property Owners

Given that the 2021 interim property taxes will be based upon the same assessment value as used for the 2020 property taxes, most if not all property owner will receive a property tax bill that will be equal to 50% of their 2020 tax bill. For some property owners, most likely where there has been an in-year assessment value change or a property tax class change, there may be an adjustment required so that the interim tax bill will equate to 50% of their 2020 annualized final tax billing. This adjustment will be reflected on the bill as a “Tax Capping Adjustment” .

While this process has been consistently used for the billing process, this line item adjustment can create some confusion to taxpayers resulting in enquiries to the department. Should property owners have questions about their 2021 interim tax bill they are encouraged to call 311. Property owners may also register for on-line access to their account information through MyProperty Tax.

Establishment of 2021 Tax Policy and Tax Rates

The establishment of annual property tax rates is a complex topic and requires comprehensive analysis and strategic decisions of City Council with regards to many options afforded under the Municipal Act. The Ontario Government has been conducting a review of the current property tax and assessment system. As part of the 2020 Ontario Budget, some additional measure to assist municipalities were announced including:

• A reduction to the education tax rates for commercial and industrial property owners. For 2021, the education tax rates will be set at 0.88%, a reduction of approximately 30%, for all properties in these classes. The reduction results in projected direct savings for City of Windsor business owners of $10.6 million. The Province will adjust its payments to local school boards so as to ensure that there is no financial impact on their operating funding.

• A new optional small business property tax class. Municipalities have the option to establish this sub-class setting the property tax rates in 2021 lower than the existing commercial tax class rate. Amendments to the Assessment Act are being proposed that would allow municipalities to define small business in a way that meets local needs and priorities. The Province will also consider a matching reduction in education taxes in addition to the decreased above.

• Proposed changes to the Assessment Act that would address assessment concerns relating to areas under redevelopment largely related to increases in market values due to speculative sales data.

• An ability for municipalities to establish guidelines in regards to vacancy rebate and reduction programs through municipal by-laws rather than seeking Ministerial consent and regulatory approval.