2026 Property Tax Clawback Rate Report

In February 2026, City Council adopted the continued policy of limiting ('capping') allowable tax increases to a maximum of 10 percent of a property's prior year's annualized taxes for properties in those classes with a property tax bill increase greater than $500. This capping policy protects commercial, industrial, and multi-residential properties from significant annual tax increases. The tax capping and clawback policy as well as the property tax rates must be adopted by City Council prior to setting the clawback rates. Once adopted, staff can then determine the funding requirements of the program and, to capture the lost revenue from properties that are capped, calculate a clawback rate. This clawback rate effectively withholds part of a property's decrease due to reassessment, as applicable. This report recommends the 'clawback percentage', which represents the amount the City will retain from any decreases in property tax bills, to offset the capping policy. As a result, properties that would otherwise see a tax reduction due to reassessment may not receive the full decrease, since a portion is withheld to help offset the revenue lost from capped tax increases on other properties. Given the Province continues to postpone reassessment, the number of properties impacted by this policy is minimal in 2026.

City Council authorize the introduction of the necessary bills in Council to give effect to Council's decision.