City of Toronto Act, 2006
Loi de 2006 sur la cité de Toronto
ONTARIO REGULATION 121/07
traditional municipal taxes, Limits and collection
Historical version for theperiod July 5, 2017 to October 26, 2017.
Disclaimer: This consolidation is not an official copy of the law because it is affected by one or more retroactive provisions which have not been incorporated into it. For information about the retroactive provisions, see O. Reg. 582/17, section 2.
Last amendment: O.Reg. 266/17.
This Regulation is made in English only.
CONTENTS
PART IINTERPRETATION
1. / Interpretation
PART II
TRADITIONAL MUNICIPAL TAXES
Tax Ratios — Allowable Ranges (Subsection 275 (6) of the Act)
2. / Allowable ranges for tax ratios
2.1 / Transition ratio for residual commercial property class
2.2 / Transition ratios
2.2.1 / Transition ratio for multi-residential property class, higher percentage
2.2.2 / Transition ratio for multi-residential property class, lower percentage
2.2.3 / Transition ratio for multi-residential property class, equal percentage
2.3 / New multi-residential class
2.4 / Transition ratio for new classes
2.5 / Average transition ratios
Local Municipal Levies — Exceptions (Subsection 277 (7) of the Act)
3. / General tax rate if s. 277 (7) of the Act applies
4. / Municipal levy restriction thresholds
5. / Special levy for tax increase
6. / Maximum tax ratios
7. / Maximum tax rates and revenue limit if s. 6 (2) applies
Graduated Tax Rates (Subsection 279 (1) of the Act)
7.0.1 / Landfill property class
Application of Part XII of the Act And Phasing Out of the Part
7.0.2 / Landfill property class
7.1 / By-law to exempt property from the application of Part XII
7.2 / By-law to end the application of Part XII immediately
7.3 / By-law to phase out the application of Part XII
Local Municipal Levies — Funding of Rebates (Subsection 277 (11) of the Act)
8. / Tax rate increases, general, re rebates to charities
9. / Tax rate increases, commercial and industrial classes, re rebates to charities
Taxation of Certain Railway, Power Utility Lands (Section 280 of the Act)
10. / Tax rates
11. / Prescribed power utilities
Payments in Lieu of Taxes, Distribution (Subsections 284 (1) to (4) of the Act)
12. / Distribution to school boards
13. / Special rules for certain defence properties
14. / Instalment payments to school boards
Universities, etc., Liable to Tax (Subsections 285 (1) to (5) of the Act)
15. / Tax payable by universities, etc.
PART III
LIMITS ON TRADITIONAL MUNICIPAL TAXES
Determination of Maximum Taxes — Amounts to be Added (Subsection 291 (1) of the Act)
15.1 / Amount to be added under par. 2 of s. 291 (1) of the Act
Determination of Maximum Taxes — Levy Change Adjustment (Subsection 291 (1) of the Act)
16. / Application
17. / Levy change adjustment
18. / Actual tax rate for a taxation year
19. / Notional tax rate to raise the previous year’s levies
20. / Graduated tax rates
Determination of Maximum Taxes — Adjustment for Consolidation or Division of Parcels (Subsection 291 (2) of the Act)
21. / Application and interpretation
22. / Consolidation of parcels, par. 1 of s. 291 (2) of the Act
23. / Severance or subdivision of land, par. 1 of s. 291 (2) of the Act
24. / Portion of parcel in same property class as original parcel
25. / Change in proportions of parcel in different property classes
26. / Change in tax exempt portion of a parcel
27. / Change in subclass assessment of a property
Determination of Maximum Taxes — Special Rule for Certain Assessments (Subsection 291 (9) of the Act)
28. / Special rule for assessments under ss. 33 and 34 of the Assessment Act
City Capping Option (Subsection 292 (1) of the Act)
29. / Adjustments under par. 2 i A of s. 292 (1) of the Act
29.1 / Adjustment to par. 3 and 4 of s. 292 (1) of the Act
By-law to Provide for Recoveries — Prescribed Adjustments (Section 293 of the Act)
30. / Re changes in taxes for school purposes
31. / Adjustment, various provisions
32. / Adjustment, par. 1 of s. 293 (4) of the Act
33. / Adjustment, par. 6 of s. 293 (6) of the Act
34. / Taxes not to be lower than uncapped taxes
Taxes on Eligible Properties — “Eligible Property” (Subsection 294 (20) of the Act)
35. / Special rules re “eligible property”
35.1 / Identification of comparable properties, s. 294 (6), (7) of the Act
Miscellaneous (Part XII of the Act)
36. / Certain payments in lieu of taxes deemed to be taxes
PART IV
COLLECTION OF TRADITIONAL MUNICIPAL TAXES
Cancellation, Reduction, Refund of Taxes — Vacant Land (Clause 323 (1) (b) of the Act)
37. / Mid-year demolition, etc.
Cancellation, Reduction, Refund of Taxes – Repairs or Renovations (Clause 323 (1) (h) of the Act)
37.1 / Land prescribed under subs. 323 (1.1)
Vacant Unit Rebate (Section 331 of the Act)
38. / Eligible property
39. / Amount of vacant unit rebate
40. / Application for vacant unit rebate
41. / Recalculation of vacant unit rebate
42. / Deadline extension, vacant unit rebate
43. / Interest on vacant unit rebate
44. / Interest on vacant unit rebate, special cases
45. / Complaint to Board re vacant unit rebate
Cancellation of Taxes, Rehabilitation and Development Period (Section 333 of the Act)
46. / Notice to Minister of Finance
part i
interpretation
Interpretation
1.(1)In this Regulation,
“commercial classes” has the meaning set out in subsection 275 (1) of the Act;
“industrial classes” has the meaning set out in subsection 275 (1) of the Act;
“optional property class” has the meaning set out in subsection 275 (1) of the Act;
“previous year” means, in respect of a taxation year, the immediately preceding taxation year;
“qualifying taxation year” means the 2017 taxation year;
“specified residential class” means the residential, farm, managed forest or new multi-residential property class;
“taxation year” means a calendar year;
“unadjusted tax ratio” means, in respect of a property class in the qualifying taxation year,
(a)the tax ratio for the property class for the previous year, or
(b)if section 7 applied to the property class in the previous year, the tax ratio for the property class for the qualifying taxation year that is determined under subsection 6 (1). O.Reg. 121/07, s.1(1); O.Reg. 161/09, s.1; O.Reg. 58/10, s.1; O.Reg. 338/11, s.1; O.Reg. 63/12, s.1; O.Reg. 443/12, s.1;O. Reg. 5/14, s.1; O. Reg. 11/15, s.1; O.Reg. 104/16, s. 1; O. Reg. 64/17, s. 1.
(2)For the purposes of this Regulation, the tax rate for a taxation year for school purposes is the tax rate prescribed for that year under section 257.12 of the Education Act. O.Reg. 121/07, s.1(2).
part ii
Traditional Municipal Taxes
Tax Ratios — Allowable Ranges (Subsection 275 (6) of the Act)
Allowable ranges for tax ratios
2.(1)The allowable ranges for tax ratios set out in the Table to this section are prescribed, for the purposes of subsection 275 (6) of the Act, for the property classes set out in the Table. O.Reg. 121/07, s.2(1).
(2)The upper and lower limits of the ranges are included in the ranges. O.Reg. 121/07, s.2(2).
TABLE
ALLOWABLE RANGES FOR TAX RATIOS
Multi-residential property class / 1.0 to 1.1
Commercial property class / 0.6 to 1.1
Industrial property class / 0.6 to 1.1
Pipe line property class / 0.6 to 0.7
New multi-residential property class / 1.0 to 1.1
Office building property class / 0.6 to 1.1
Shopping centre property class / 0.6 to 1.1
Parking lots and vacant land property class / 0.6 to 1.1
Large industrial property class / 0.6 to 1.1
Professional sports facility property class / 0.001 to 1.1
Resort condominium property class / 1.0 to 1.001
Residual commercial property class / 0.6 to 1.1
O.Reg. 121/07, s.2, Table; O.Reg. 93/08, s.1.
Transition ratio for residual commercial property class
2.1For the purposes of subsection 275 (8) of the Act, the transition ratio for the residual commercial property class for the 2008 taxation year is 3.67373. O.Reg. 93/08, s.2.
Transition ratios
2.2(1)This section applies for the qualifying taxation year if, in comparison to the previous year, the percentage of total tax revenue for the qualifying taxation year derived from tax on property in a class other than a specified residential class would be lower in the qualifying taxation year if the unadjusted tax ratios for the qualifying taxation year were applied. O.Reg. 58/10, s.2(1).
(2)If this section applies, the City may establish a tax ratio for the qualifying taxation year for the property class referred to in subsection (1) that is greater than the unadjusted tax ratio for the class but not greater than the transition ratio determined for the class under this section. O.Reg. 161/09, s.2; O.Reg. 58/10, s.2(2).
(3)If the City establishes a tax ratio for a property class under subsection (2), the transition ratios determined under this section apply to the City for the qualifying taxation year except for the purposes of,
(a)the specified residential classes; and
(b)an optional property class if the qualifying taxation year is the first year in which the optional property class applies in the City. O.Reg. 161/09, s.2; O.Reg. 58/10, s.2(3, 4).
(4)The following rules apply for the purposes of this section:
1.The total assessment of the properties in a property class for the previous year includes all assessments made for the purposes of taxation for the previous year that are made after the return of the roll for the previous year.
2.In determining the total assessment of the properties in a property class for the qualifying taxation year, the City may elect to exclude the assessment of a property in the property class,
i.if the current value of the property,
A.has, before any adjustment under subsection 19.1 (3) of the Assessment Act, increased by 100 per cent or such greater percentage as the City elects since 2012, or
B.has decreased by 25 per cent or such greater percentage as the City elects since 2012, and
ii.if the City also excludes the assessment of the property in determining the total assessment of the properties in the property class for the previous year.
3.An optional property class is considered to be a separate property class for the purposes of subsection (4). O.Reg. 161/09, s.2; O.Reg. 58/10, s.2(5-7); O.Reg. 443/12, s.2.
(5)Subject to sections 2.2.2, 2.2.3, 2.3 and 2.4, the transition ratio for a property class for the purposes of subsection 275 (8) of the Act is determined as follows:
1.Multiply the unadjusted tax ratio for the property class for the qualifying taxation year by the amount of the total assessment of the properties in that property class for the year.
2.Multiply the unadjusted tax ratio for the property class for the qualifying taxation year by the amount of the total assessment of the properties in that property class for the previous year.
3.Determine the weighted reassessment change for the specified residential classes by dividing “A” by “B” where,
“A”is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the specified residential classes, and
“B”is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the specified residential classes.
4.Determine the weighted reassessment change for the commercial classes by dividing “C” by “D” where,
“C”is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the commercial classes, and
“D”is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the commercial classes.
5.Determine the weighted reassessment change for the industrial classes by dividing “E” by “F” where,
“E”is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the industrial classes, and
“F”is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the industrial classes.
6.For each property class that is not included in the specified residential classes, the commercial classes or the industrial classes, determine the weighted reassessment change for the property class by dividing the amount determined under paragraph 1 for the property class by the amount determined under paragraph 2 for the property class.
7.Determine the adjustment factor for each property class by dividing “G” by “H” where,
“G”is,
(a)the weighted reassessment change for the commercial classes as determined under paragraph 4 if the property class is included in the commercial classes,
(b)the weighted reassessment change for the industrial classes as determined under paragraph 5 if the property class is included in the industrial classes, or
(c)the weighted reassessment change for the property class as determined under paragraph 6 if the property class is not included in the specified residential classes, the commercial classes or the industrial classes, and
“H”is the weighted reassessment change for the specified residential classes as determined under paragraph 3.
8.Determine the transition ratio for the property class for the qualifying taxation year by dividing the unadjusted tax ratio for the property class for the year by the adjustment factor for the property class determined under paragraph 7. O.Reg. 161/09, s.2; O.Reg. 58/10, s.2 (8, 9); O. Reg. 64/17, s. 2.
Transition ratio for multi-residential property class, higher percentage
2.2.1(1)This section applies for the qualifying taxation year if,
(a)in comparison to the previous year, the percentage of total tax revenue for the qualifying taxation year derived from tax on property in the multi-residential property class would be higher in the qualifying taxation year if the unadjusted tax ratio for the qualifying taxation year was applied;
(b)the unadjusted tax ratio for the multi-residential property class for the qualifying taxation year is equal to or greater than 2.0; and
(c)the City does not establish a tax ratio under subsection 2.2 (2). O. Reg. 64/17, s. 3.
(2)The transition ratio for the multi-residential property class for the qualifying taxation year is the greater of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5). O. Reg. 64/17, s. 3.
Transition ratio for multi-residential property class, lower percentage
2.2.2(1)This section applies for the qualifying taxation year if, in comparison to the previous year, the percentage of total tax revenue for the qualifying taxation year derived from tax on property in the multi-residential property class would be lower in the qualifying taxation year if the unadjusted tax ratio for the qualifying taxation year was applied. O. Reg. 64/17, s. 3.
(2)If the unadjusted tax ratio for the multi-residential property class is equal to or greater than 2.0, the transition ratio for the property classfor the qualifying taxation year is equal to the unadjusted tax ratio. O. Reg. 64/17, s. 3.
(3)If the unadjusted tax ratio for the multi-residential property class is less than 2.0 and if the City establishes a tax ratio under subsection 2.2 (2), the transition ratio for the property class for the qualifying taxation year is the lesser of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5). O. Reg. 64/17, s. 3.
Transition ratio for multi-residential property class, equal percentage
2.2.3(1)This section applies for the qualifying taxation year if the percentage of total revenue for the qualifying taxation year derived from tax on property in the multi-residential property class would be the equal to the previous year’s if the unadjusted tax ratio for the qualifying taxation year was applied. O. Reg. 64/17, s. 3.
(2)If the unadjusted tax ratio for the multi-residential property class is equal to or greater than 2.0, the transition ratio for the property classfor the qualifying taxation year shall be determined as follows:
1.Take the greater of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5).
2.The transition ratio is the lesser of the amount determined under paragraph 1 and the unadjusted tax ratio for the property class. O. Reg. 64/17, s. 3.
(3)If the unadjusted tax ratio for the multi-residential property class is less than 2.0and if the City establishes a tax ratio under subsection 2.2 (2), the transition ratio for the property class for the qualifying taxation year is the lesser of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5). O. Reg. 64/17, s. 3.
New multi-residential class
2.3For the 2017 taxation year, the transition ratio for the new multi-residential class in the City is 1.0. O. Reg. 263/17, s. 1.
Transition ratio for new classes
2.4The following rules apply for the purposes of subsection 275 (8) of the Act in determining the transition ratio for a property class in the City for the qualifying taxation year:
1.Subject to section 2.3, the transition ratio for a property class other than an optional property class is the upper limit of the allowable range of tax ratios prescribed for the property class if no property class was classified in the property class in the previous year. O.Reg. 161/09, s.2; O.Reg. 58/10, s.4; O. Reg. 263/17, s. 2.
Average transition ratios
2.5(1)The following rules apply for the purposes of subsection 275 (8) of the Act for the qualifying taxation year:
1.The prescribed average transition ratio for the commercial classes is the weighted average of the qualifying taxation year’s transition ratios for the property classes within the commercial classes.
2.The prescribed average transition ratio for the industrial classes is the weighted average of the qualifying taxation year’s transition ratios for the property classes within the industrial classes. O.Reg. 161/09, s.2; O.Reg. 58/10, s.5(1-3).
(2)For the purposes of subsection (1), the weighted average of the qualifying taxation year’s transition ratios shall be calculated using the formula in subsection 275 (12) of the Act, except that the phrase “tax ratios” in the portion before paragraph 1 shall be read as “transition ratios” and the phrase “tax ratio” in paragraph 1 shall be read as “transition ratio”. O.Reg. 161/09, s.2; O.Reg. 58/10, s.5(4).
(3)This section does not apply to determine transition ratios for the commercial classes or industrial classes, as the case may be, in the first year an optional property class applies in a municipality. O.Reg. 161/09, s.2.
Local Municipal Levies — Exceptions (Subsection 277 (7) of the Act)
General tax rate if s. 277 (7) of the Act applies
3.(1)This section provides for the manner in which the tax rates on property in a property class are to be determined under subsection 277 (7) of the Act if the conditions set out in that subsection are satisfied. O.Reg. 121/07, s.3(1).
(2)The tax rate for the general levy for the taxation year for the property class shall not exceed the sum of,
(a)the maximum class rate for the year determined for the property class under section 7; and
(b)the additional rate for the property class for the year that is determined under subsection (3) if,
(i)the City has calculated the tax rate for the property class under section 8 or 9, and
(ii)the property class is one of the commercial classes or industrial classes. O.Reg. 121/07, s.3(2).