REQUEST FOR DIRECTION
DATE: December 3, 2019 Report No. FIN-19-021
TO: Laurie Hurst, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:
Title
Property Taxation Policy
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ESSENTIAL QUESTION:
What potential changes to the Township's property taxation distribution policies would the Committee wish to see?
RECOMMENDATION:
Recommendation
That the COTW receive Staff Report No. FIN-19-021 for information, provide any additional direction to staff as the COTW considers advisable, and direct staff to prepare an updated Revenue, Tax, Budget and Financial Sustainability Policies & Objectives document for Council's consideration.
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BACKGROUND:
Consideration of the Township property taxation policies and objectives occurs each year during the financial plan and tax rates discussions. During the 2019 process, Council decided not to increase the tax revenue requirements for the Business class and shifted the resulting tax burden to the Residential class. As well, a report from staff was requested regarding the potential for additional reductions to the ratio over the short and long term.
The following simple, non-specific statements, as found in Schedule A of Financial Plan Bylaw, 2019, No. 2959, guide staff in the setting of annual tax rates:
Objectives and Policies:
a. Distribute property tax increases equitably among all property classes
b. Adjust the tax rate ratios each year to maintain stability while ensuring the tax rate is reflective of both market and non-market changes
c. Set annual property tax rates after considering significant new growth or loss of assessment in each property class
The ultimate question to be answered is whether or not Council wishes to see any change to the way the tax burden is distributed between classes. If so, detailed options could be presented with respect to how the desired changes could be implemented, and over what time frame. This report provides some backgrou...
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