2021 Property Tax Rates and Related Matters

Reg. 121/07 to make subsections 19 (4.2), (4.3) and (4.4) apply. 2. City Council adopt the 2021 tax ratios shown in Column II for each of the property classes set out below in Column I: Column I Column II (to be adopted) Column III (for information only) Property Class 2021 Recommended Tax Ratios (before Graduated Tax Rates) 2021 Ending Ratios (after Graduated Tax Rates and Levy Increases) Residential 1.000000 1.000000 Multi-Residential 2.098351 2.053182 New Multi-Residential 1.000000 1.000000 Commercial General 2.640000 2.611585 Residual Commercial -Band 1 2.574300 2.431112 Residual Commercial -Band 2 2.574300 2.611585 Industrial 2.623305 2.585658 Pipeline 1.923560 1.923561 Farmlands 0.250000 0.250000 Managed Forests 0.250000 0.250000 3. Subject to receiving the necessary amendment to O.Reg. 121/07 for the 2021 taxation year, City Council elect to raise the tax rates as follows: a. on the restricted property classes: i. on the Commercial Property Classes, by one-half of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class, and ii. on the Multi-Residential Property Classes, no tax increase; and b. on the Industrial Property Classes, by one-third of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class. 4. City Council continue the previous adoption of two bands of assessment of property in the Residual Commercial Property Class, for the purposes of facilitating graduated tax rates for the Residual Commercial property class in 2021 as set out in the Enhancing Toronto's Business Climate initiative, and setting such bands of assessment for each band shown in Column II at the amount shown in Column III, and setting the ratio of the tax rates for each band in relation to each other at the ratio shown in Column IV: Column I Column II Column III Column IV Property Class Bands Portion of Assessment Ratio of Tax Rate to Each Other Residual Commercial Lowest Band 1 Less than or equal to $1,000,000 0.930895 Residual Commercial Highest Band 2 Greater than $1,000,000 1.000000 5. City Council adopt: a. the tax rates set out below in Column V, which rates will raise a local municipal general tax levy for 2021 of $4,621,345,185 inclusive of a 0.7 percent residential, new multi-residential, pipeline, farmlands and managed forest tax rate increase, a 0.35 percent commercial tax rate increase, and a 0.23 percent industrial tax rate increase; and b. the additional tax rates set out below in Column VI, which rates will raise an additional special general tax levy of $49,826,401 dedicated for priority transit and housing capital projects (the "City's Building Fund levy"), in accordance with Council adopted Recommendation 6 of Executive Committee Report EX22.2 (February 15, 2017) and Item EX11.26 (December 17, 2019): Column I Column II Column III Column IV Column V Column VI Column VII Property Class 2021 Tax Rate for General Local Municipal Levy before Graduated Tax Rates 2021 Tax Rate for General Local Municipal Levy After Graduated Tax Rates 2021 Additional Tax Rate to Fund Budgetary Levy Increase 2021 Municipal Tax Rate 2021 Additional Tax Rate to Fund City Building 2021 Municipal Tax Rate Inclusive of City Building Fund Rate (excluding Charity rebates) (excluding Charity rebates) (Column III+IV) (Column V+VI) Residential 0.448154 percent 0.448154 percent 0.003137 percent 0.451291 percent 0.006722 percent 0.458013 percent Multi-Residential 0.940384 percent 0.940384 percent 0.000000 percent 0.940384 percent 0.000000 percent 0.940384 percent New Multi-Residential 0.448154 percent 0.448154 percent 0.003137 percent 0.451291 percent 0.006722 percent 0.458013 percent Commercial General 1.183126 percent 1.183126 percent 0.004141 percent 1.187267 percent 0.008873 percent 1.196140 percent Residual Commercial - Band 1 1.153682 percent 1.101366 percent 0.003855 percent 1.105221 percent 0.008260 percent 1.113481 percent Residual Commercial - Band 2 1.153682 percent 1.183126 percent 0.004141 percent 1.187267 percent 0.008873 percent 1.196140 percent Industrial 1.175644 percent 1.175644 percent 0.002743 percent 1.178387 percent 0.005878 percent 1.184265 percent Pipelines 0.862051 percent 0.862051 percent 0.006034 percent 0.868085 percent 0.012931 percent 0.881016 percent Farmlands 0.112038 percent 0.112038 percent 0.000784 percent 0.112823 percent 0.001681 percent 0.114504 percent Managed Forests 0.112038 percent 0.112038 percent 0.000784 percent 0.112823 percent 0.001681 percent 0.114504 percent 6. City Council determine that the 2021 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $5,099,803 to fund the mandatory 2021 property tax rebates to registered charities in the commercial and industrial property classes, which provision is to be funded, for a net impact on the 2021 operating budget of zero, by the following: a. the additional tax rates set out below in Column III be levied as part of the general local municipal levy on the commercial classes set out in Column I and Column II to raise a further additional local municipal tax levy of $5,007,559 to fund the total estimated rebates to registered charities for properties in the commercial classes in 2021: Column I Column II Column III Commercial Property Classes Bands Additional Tax Rate to Fund Rebates to Eligible Charities Commercial General Unbanded 0.004046 percent Residual Commercial Lowest Band 0.003767 percent Residual Commercial Highest Band 0.004046 percent b. an additional tax rate of 0.001081 percent be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $92,244 to fund the total estimated rebates to registered charities for properties in the industrial class in 2021. 7. City Council allocate $2,725,395 to the SmartTrack Funding Reserve Fund XR173, in accordance with Item 2018.EX33.1, Part 19.e. (April 24, 25, 26, and 27 2018); this figure is composed of the accumulated base of $1,813,702 plus $911,693, equivalent to 15 percent of all incremental municipal tax revenue arising from commercial and residential assessment growth in the Tax Increment Financing Zones for 2020, net of any Imagination, Manufacturing, Innovation and Technology (IMIT) Grants attributable to this assessment growth. 8. City Council direct the Chief Financial Officer and Treasurer to report to Executive Committee, or directly to City Council or a special meeting of City Council if necessary, on the 2021 tax rates for school purposes, and the 2021 percentage of the tax decreases required to recover the revenues foregone as a result of the cap limit on properties in the commercial, industrial and multi-residential property classes (the 2021 'clawback' rates). 9. City Council determine that: a. the instalment dates for the 2021 final tax bills be set as follows: i. the regular instalment dates be July 2, August 3, and September 1 of 2021; ii. for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 16, September 15, October 15, November 15 and December 15 of 2021; and iii. for taxpayers who are enrolled in the two installment program, the final instalment date be July 2, 2021; and b. the collection of taxes for 2021, other than those levied under By-law No. 1038-2020 (the interim levy by-law) be authorized. 10. City Council adopt the application of the Creative Co-location Facilities subclasses for the Commercial, Commercial Residual and Industrial property classes for 2021. 11. City Council temporarily suspend the following eligibility criteria requirements for the Creative Co-Location Facilities Subclasses in the Toronto Municipal Code, Chapter 767, Taxation, Property Tax, in 2020 and 2021, in order to assist creative enterprises to remain in the subclass while the COVID-19 pandemic and public health emergency orders are obstructing them from meeting these criteria: a. for the Tenant-Based Model: i. that a minimum of 51 percent of the tenants of the property be tenant creative enterprises; ii. that tenant creative enterprises must occupy at least 51 percent of the property's net rentable area; and iii. that a minimum of 12 cultural programs be offered free of charge to the public at the property over a minimum of 10 months in each calendar year; and b. for the Membership-Based Model: i. that the operator must provide members access to and use of the following shared resources for a minimum of 8 hours per day, 5 days per week: a. work space consisting of office or production space; b. meeting or conference space; c. high-speed wireless internet access that meets minimum standards established by the Canadian Radio-Television and Telecommunication (CRTC); and d. office equipment; ii. that a minimum of 25 professional development programs, services or events must be offered to members, in the calendar year. 12. City Council amend the eligibility criteria requirements for the Creative Co-Location Facilities Subclasses in the Toronto Municipal Code, Chapter 767, Taxation, Property Tax, in 2021, to require that property owners pass on tax savings resulting from inclusion in the subclasses to their tenant operators of the live music venue within 12 months of each year's application deadline so as to remain eligible for future years. 13. City Council direct the City Manager and the Chief Financial Officer and Treasurer to report back to the July 14 and 15, 2021 meeting of City Council on an update of the information included in the Long-Term Financial Direction, which shall include: a. a comparison of residential commercial, and industrial property taxes and water and solid waste rates with the Greater Toronto Area and other large Canadian municipalities; b. revised estimates on revenue from all revenue tools currently available to the City for implementation, including cost estimates for implementation and the policy implications of each revenue tool; c. an updated estimate of the revenue that could accrue to the City through a 1 percent municipal sales tax, including all online consumer activity; and d. a study on an increase of the Municipal Land Transfer Tax for homes valued at or over $2 million, $3 million and $4 million, respectively, including: i. the aggregate Municipal Land Transfer Tax and provincial Land Transfer Tax paid on homes of over $2 million across Canada's largest municipalities, and how the land transfer tax for Toronto properties compares to those other municipalities; ii. the number of homes in Toronto estimated to be valued at-or-over $2 million, $3 million and $4 million, respectively, in 2026, and the expected breakdown of those homes by Ward; iii. the potential impacts that a Municipal Land Transfer Tax increase may have on the housing market, including: 1. the impact on Toronto's real estate market versus neighbouring Greater Toronto Area municipalities; and 2. the impact on the Toronto's housing supply and affordability, and in particular, on homes valued at under $2 million; and iv. the potential impacts that a Municipal Land Transfer Tax increase may have on Toronto's post-pandemic economic recovery. 14. City Council authorize the appropriate officials to take the necessary actions to give effect to City Council's decision and authorize the introduction of the necessary Bills in City Council.