2018 Provincial Budget – Property Tax Related Matters

April 12, 2018

 

Here is link to the Budget, please refer to pages 295-299.

http://budget.ontario.ca/2018/budget2018-en.pdf

Items that OMTRA members may wish to make note of are;

  1. Supporting Fair and Accurate Property Assessments

To further strengthen the Advance Disclosure process that was introduced by MPAC for the 2016 assessment date, the Province is proposing that an earlier valuation date be used as the basis for property assessments. For the next assessment update, which will take place for the 2021 taxation year, assessments would be based on a valuation date of January 1, 2019. This earlier date would facilitate a more effective valuation process that allows for meaningful and open exchange of information among MPAC, property owners and municipalities, leading to more transparent and accurate property assessments.

The Province also wants to make it easier for property owners to comply with MPAC’s requests for information. Work is underway to review the format of MPAC’s requests, ensuring that material sent to property owners is clear and reasonable. As well, the Province wants to ensure that property owners who comply with MPAC’s information requests are not disadvantaged during the valuation or appeal processes. To support this objective, the government plans to introduce amendments in fall 2018 to provide a framework for addressing non‐compliance.

  1. Modernizing Railway Right-of-Way Property Taxation

Rates were adjusted in the 2017 Budget, and for 2018 the government will make further rate adjustments as part of its commitment to modernizing the property taxation of railway rights-of-way.  Table 5.6 on Page 295 provides the details and stakeholder input is welcomed on future adjustments.

  1. Non-Profit Child Care Services in Otherwise Tax Exempt Spaces

An amendment is proposed to the Assessment Act to provide a tax exemption to non-profit child care facilities that lease space in otherwise tax exempt properties.  The proposed amendment would be consistent with MPAC’s historic treatment of these facilities.

  1. Airports

The Province is planning to conduct a review of the current approach used to calculate payments in lieu of property tax (PILT).  Airport authorities in Ontario make payments in lieu of property tax based on the number of passengers that travel through the airports annually. The passenger rates used to calculate the PILT have not changed since they were introduced in 2001. The review of the PILT program will include consultation with affected municipalities and airport authorities.

  1. Creating Consistency in Business Vacancy Rebate and Reduction Programs

In the 2016 Budget, the Province introduced a legislative framework to give municipalities broad flexibility to refine their vacancy rebate and reduction programs. 

With respect to education property taxes, the Province currently mirrors any municipal property tax decisions related to the vacancy programs. This has resulted in different treatments of education property taxes across the province.  The government will align the education property tax portion of these programs with the changes made by municipalities, ensuring greater consistency across the province. This initiative would begin in 2019 to ensure that businesses have time to plan for any necessary program changes.

  1. Ongoing Integrity of Education Property Tax Revenue

To support the ongoing integrity of education property tax revenues, for 2018 the Province is maintaining the technical adjustment to education property tax rates introduced in 2016. The Province will also continue to monitor education property taxes going forward, including expanding its capacity to accurately track and verify the remittance of these taxes.