HomeMy WebLinkAboutTR-51-97 Meeting:
Date:
Report#
Subject:
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
June 16, 1997
File#:
TR-51-97
M Frore F.1 .
By-Law#
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. That Report TR-51-97 be received for information, and
2. That the Region of Durham be requested to allow the opportunity for input from
all the area municipalities to any proposed tax relief program being considered
through Bill 106.
Background:
1. At the meeting of May 26, 1997, Council referred item 1-8 (attachment # 1) to the
Treasurer for review and a report. The information item refers to a mandatory
program of tax relief for low-income, disabled people, and seniors.
2. Staff have been in contact with both AMO and the Ministry of Municipal Affairs
and have been advised that the amendment, which made mandatory a program
of relief, was passed with Bill 106. A copy of the amendment under section 373
of the act is attachment #2 to this report.
2.1 The Ministry of Municipal Affairs has confirmed that, as section 373 states, the
lower-tier municipalities are not subject to adoption of the program. However the
mandatory tax relief program is applicable to the Region as the upper-tier
municipality. The Region will be required to apply a consistent program to each
of the municipalities within its boundaries.
...2
APELER PAP ER -- 801
P n Y
RECCLE
-2 PR'tfllDQ RECYCLED PAPER
TR-51-97 Page 2
2.2 The Ministry of Municipal Affairs did state however, that the Region has the ability
to define the degree of relief it will adopt. The legislation offers a very broad
interpretation of this section of the act such that the Region could effectively apply
minimal relief to the affected taxpayers and still be in compliance with the act.
3.0 Staff would expect that the Region will deal with this change along with the other
functional changes imposed by the various Legislative changes. The Region is
requested to allow the area municipalities the opportunity for input into the
process prior to the imposition of any tax relief program.
Respectively Submitted,
MAM/pp
Attach:
Reviewed by,
f
W.H. Stockwell,
Chief Administrative Officer
" 1
05/13/97 22:56:00 EST; ASSOCIATIOR (IF?->
JlAY-13-97 TUE 03:49 PM A M 0
IV16-m her.: tlri rte urtiG�tlbh.
For Your
Onformation
For ilnlnediate attention
9056234169 CLERK—Clarington Mun Page 002 �i
FAX NO. 4169297574 ATTACHMENT #1P. 01
COUNCIL INFORMATION I_8
ti Association of
l t�tl Municipalities
of Ontario
2Sa HiOOr St-Eaet,Sulle 7a1
Toronto,ON Mow 1E9
Toll 14113)97.0.7573•lax;(416)820.7574
OMAR!8mo0gm0.mun1c0m.00m
AMO URGES PROVINCII* TO RECONSIDER MANDATORY TAX RELIEF PROGRAMS
ISSUE:
AMgarding mandatory tax relief for low-
O's response to an amendment to Bill 106, the Fair Municipal Finance Act regarding seniors and persons with disabilities.
THE PACTS:
During clause by clause analysis of Bill 106, the Fair Municipal Finance Act, the Ministry of Finance Introduced an
amendment which would force municipalities to establish a tax relief program for low-income seniors and persons with
disabilities. The amendment also states that it could be possible to not only receive a deferral,but even a"cancellation"
Of properly tax increases.
The Fair Municipal Finance Act, Bill 106,which was introduced during Mega Week,establishes a new property and tax
Policy system for Ontario's municipalities. According to the 13111 introduced in January,tax relief for low-income seniors
and persons with disabilities was to be a local option,that is,whether to provide one was a local decision. According to
the amendment which has been incorporated into the Bill(scheduled for Third Reading),this will not be a local option,
but rather, mandatory.At no time during discussions with the Province on the reform of the assessment and property tax
system were municipalities led to believe that certain tax payers could have their tax increases cancelled.
In our presentation to the Standing Committee on Finance and Economic Affairs in April 1997, AMO supported Bill 106
in principle, on [tie grounds that it provides local flexibility and accountability for tax policy decisions. AMO viewed this, "
piece of legislation as att acknowledgmont by the Province,that municipalities are ready and able to be held accountable
for local tax policy that reflects local circumstances, While supportive of the Bill,AMO identified some concerns relating
to implementation,such as issues of timing and the lack of impact analyses. However, none of the issues or concerns
raised by AMO with respect to Bill 106 related to providing relief for low-income seniors and persons with disabilities from
properly tax increases, in fact,AMO acknowledges that the reassessment will have differing impacts on taxpayers and
hence believes that municipalities should have the option to provide such relief if that is appropriate for their communities.
STATUS: — ___..
Upon learning of the amendment, and knowing that the Bill has been ordered for Third Reading, AMO wrote to the
Minister of Finance, expressing in the strongest possible terms,our opposition to the amendment.
In the letter,AN10 emphasized that not only does this amendment completely contradict the spirit and intent of Bill 1o6,
narnely, local autonomy and flexibility, but it may result in increased costs to municipalities to establish and administer
a relief program, at a time when they can least afford them. Consequently, AMO argued that the amendment be
withdrawn.
AMO will keep the membership apprised of any developments on this issue.
For mcrc information contact: Joanne Meddaoui, Policy Advisor, (416) 929.7573
lmeddaoui @ amo.municoln.com. ext. 320, c-mail:
Transmission Pnoblerns: Mari] Pontes, Admtntslrative Assistant, (416) 929.7573 ext. 326, c-mail:
mpontes @ amo.muncom.com.
M&Y 13. 199;
1/1
8,03
MAY-27-97 TUE 02;53 PM A M 0
Sec,/art,55
Amounts
(MINFe.rreJ
by local
hrunicipal-
itirs ndiustcd
A11111 ctppf Ac,
FAX N0. 4169297574
P, 01102
Pvst-11'"Fax Note 7671E Dat `lha a_ot�_,,
HMENT #2
To
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Phono#
Phone 5� x ��
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Fax# Ij}-C _7S I
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'jet 106
Yley
(9) If a local muni
upper-tier purposes to respect _C TI re a
1998 assessment-related tax increase or fins dune municipalitd de palier supccrieur
decrease is being phased-in the amount of tion td�oul non do['Augmentation
de 1y98dtest
taxes the local municipality shall pay the incluse progressivement, le rnontant des inl•
cco r anc municipality be adjusted in p6ts qu'elle est tenue de payer h la municipa-
aeeordance with the following principles for iitd do palier supErieur est ajust6 Mullicntd-
sharing the shortfall or surplus arising from a meat ails principes qui suivent pour o qui l&est
Phase-in:
du partage du trlanque it gagner ou de 1'exei:'-
dent r6sultant de I'inclusion : '
L A shortfall in taxes resulting from the
phasing in of an increase shall be
shared in proportion to the upper-tier
and lower-tier portions of the taxes
with respect to which the phase-in
applied,
2. A surplus of taxes resulting from the
phasing in of a decrease shall be shared
in proportion to the upper-tier and
lower-tier portions of the taxes with
respect to which the phasc.ln applied,
inrInx bill (1Q) A notice of demand of taxes payable
on tax bill in respect of which there is a phase-in shall
indicate the anlount of taxes that would have
been payable without the phase-in the
atnount of taxes that are payable, a ,
nd the
difference-
_W
—� l o income 3�3 (1) l%or the purposes of relieving
seniors, financial hardship, the council of a munici-
scnlors,clC.
pality, other than a lower-tier municipality,
may pass a by-law providing for deferrals or
cancellation of, or other relief in respect of,
all or part of assessment-related tax increases
on property in the residential/fanll property
class for owners who are, or whose spouses
are,
(a) low-income seniors as defined in the
by-law;or
(b) low-income persons with disabilities as
defined in the by-law.
roust be (1.1) The council of a municipality, other
given than a lower-tier municipality, shall pass a
by-law under subsection(1),
Uerinitinns (2) l+or the u
1 (poses of this section,
L Le nlanque A gagner r6sultant de fill-
elusion progressive dune augmenta-
tion d'imp6t est partagd en proportion
de la fraction des imp6ts visds par i'in-
clusion qui revient au palier infdrieur
et de cello, qui revient all palier supG-
rieur,
2. UexcMent r6suitant de ]'inclusion pro-
gressive dune r@duction d'inlp6t est
parta96 on proportion do la fraction des
imp6ts visds par 1'inelusion qui revient
all palier inf6rieur et de Celle qui re-
vient au palier sup&ietlr.
Ajustement
dc.o montnnts
IronsW69 par
I'm mtlnicipia
tits locales
(10) Un Avis exigeant le Paieillent d'im- Remetsne.
p6ts exigiblos qui font ]'objet d'une inclusion tnentsrign.
Progressive pr6cise le montant des imp6ts qu.i comPta deem.
auraient dtd exigibles en Pabsenee de I'inclu- position
Sion, le montant des imp6ts exigibles et la
diff6rence entre ees deux montants•
373. (1) En vue d'alldger les difficult6s
flnanei4es de cos
AW.eemeot
personnes, le Conseil dune
tnuni0palit6 nest
vent,per-
qui pas une munici aiitd
de palier infdriew'
sonnea 9g6es
petit prendre un rdgleruent.
municipal preevoyant le report
rdav�nu`
ou I'annulation
de tout oa part(e do 1'augmetltation
d'imp6t
d6coulant de 114valuation des bicns de la
cat6lgorie des biens l•dsldentiels/agricoles,
ou
tine autre,forme d'all6gement en rapport avee
Will On partie de cette
augmentation, dans le
cas des propri6taires qui satisfont 3 Tune oil
1'autre des Conditions
suivanteS oil (font le
conjoint y satisfait:
a) ils sont des personnes ag&s A faible
revcnu au $ens du r8glenlent munici-
pal;
b) lis sont des personnes A faible revellu
atteintcs dune 1nvalidit6 au lens du
rbglement municipal.
(1.1) Le Conseil dune raunicipalit8 qui (:nndgenunt
nest pas une nlunicipalitd do palier inf6rieur rkcol doit
est tenu de prendre le r8glenlcnt municipal We accord6
pr6 11 all paragraphe (1). ,ter
(2) Les d6finitions qui suivcnt s'appliquent INAnilions
au pr6sent article,
It 1 4
MAY-27-97 TUE 02153 PM A M 0
40
FAX N0, 4169297574
P, 02/02
ATTACHMENT #2
Hill 106, Part it FAIR MUNICiPAI,FINANCE
Aunicipal Act A17 7drnents Scc,/art,55
Mndifrcnriat de la Iii stir/es ntunicipalills
itaNNOS Bien I-related tax increases' [means tax
increases beginning in I998 or beginning in
a subsequent taxation year for which the
day or one of the days as of which current
value is determined for the purposes of
assessment for the taxation year is different
from the corresponding day or days for the
provious taxation year; ("atlgillentation
d'imp6t decoulant de I'evaluatjon")
"Ownez" means a person assessed as an
owner, ("propri6taire")
Nterminn, (3) The amount of an assessmc
(ion of asses. tit-related
Smenl-rollled tax increase shall be determined as follows:
lax increase
1, 1701- it tax increase beginning in 1998,
the assessment-related tax increase is
the tax increase within the meaning of
the definition of "1998 assessment-re-
lated tax increase or decrease" in sub-
Section 372 (2) reduced, if the tax
Increase is being phased-in under a by-
law under section 372, by the amount
not yet phamd-in,
2, htor a tax increase beginning in a sub-
sequent year, the assessment-related
tax increase is the 'uhQunt determined
in accordance with tho regulations,
Rgwlm rn1,, (a) The Minister may make regulations
relnled lax governing the determination of an asses-
iucre.lses sment-related tax increase for the purposes of
paragraph 2 of'subsection(3).
iolow r-No (5) by-law of an upper-tier municipality
ro tower-nets providing for a deferral or cancellation of tax
increases or other relief in respect of tax
increases also applies with respect to the
tax increases of its lower-tier municipalities.
Amounts (6) If a lower-tier Iminici alit
uanxferred rate for u p Y levies a tax
bylewer.lier upper-tier purposes in respect of
mus'adj N- which there is a deferral or cancellation of tax
iliesudjugted Increases or other relief in respect of tax
increases, the amount of tuxes the lower-tier
Municipality shall pay the upper-tier munici-
pality shall be reduced accordingly.
Deferred (6,1) If a lower-tier
Iax",pay, municipality levies a
ment in tax rate for upper-tier purposes in respect of
upper-der which there is a deferral of tax increaseS the
(<augmentation d'imp6t decoulatt de 1'eva-
luadon» Augmentation d'imp6t qui corn-
nlencc en 1998 ou dans une ann6c d'lmpo-
sition ult6i'leure pour laquelle le jour ou till
des jours auquel la valeur actuelle est de-
tcrnlinee aux fins de 1'evaluation appli-
cable d cette annEe est diffdrent du ou des
fours correspondents applicable$ it 1'annee
pr6c6dente. 0assessment-related tax
increases»)
«propri611ire» Personne vis6e par une evalua-
tion 11 ce titre.(«owner»)
(3) Le montant de 1'augrnentation Wimp&
decoulant do ]'revaluation est calcine comtlle
suit .
1, Dens le cas d'unc augmentation d'im-
p6t qui commence en 1998, (augmen-
tation Wimp& decoulant de 116valua-
tion correspond it ('augmentation
d'imp6t an seas (le la definition de
<uaugnlentation ou r6duction Wimp&
decoulant de IYvaluation de 1998» au
paragraphe 372 (2), d6dttetion faitc du
montant qui reste h inelure, si cette
augmentation cst incluse progressive-
Mcnt aux ternles d'un reglemont
municipal pris on application de i'atti-
cle 372,
2. Dons le cas dune augmentation Willi,
P& qui commence dans une annee ul-
t6ricure, !'augmentation d'imp6t de-
coulant de F6valuation est le montant
calcu16 confor►n6ment aux r8glcments.
Calcui de
1'auFmeaem-
lion<t'inipot
decoulant de
I'dvnItntion
(4) Le ministl'e pout, par rbglemcnt, r6gir Ragmmems,
le calcul d'une augmentation d'imp6t ddcou- "°6m01tit'
lint de 1'6valuation our I'a hi
caton de la bond impOt
p pp � ddcoulant de
disposifion 2 du paragraphe (3), Pilvidustion
(5) Les rt'glements municipaux d'une mu-
nicipaliO do palier supesrieur dui prevoient le
report ou I'annulation d'une augmentation
d'imput ou une autre forme d'all6gement en
rapport avec cette augmentation s'appliquent
cgalement auX augmentations d1itllp6t des
municipalit6s de palier infdrietir de cette mu-
nicipalit6.
(6) Lorsqu'une mtinicipalite de palier inf&
rims preWe, $01011 lc taux d'imposition fixts
et aux fins d'une nlunicipalite de palier supts-
ricur, tin imptit dont 1'augmentation flit Yob-
jet d'un report, d'une annulcation ou d'unc
autre forme d'allegement, le montant des im-
pots qu'elle verse it la mutticipallt6 de palier
sup6ricur est reduit en congquence,
(6.1) Lorsqu'une municipality do palier in-
f6ieur preleve, SCION Ic faUX d'imposition
Eix6 et aux fins d'une mullicipalite de palier
805
Applieplion
aux Inunlel.
PAM&de 1)a.
live intdricur
Rajustcmeni
des tytunlanis
trAWfirels pat
acs municips-
lilt`s do palier
iniVricur
Wrveruent
des impOts
reporl6g 1 Ia
Iminicipoliid
de palier
supdrieur
Pq