The 30% property tax discount on vacant commercial and industrial properties will drop to 15% and 0% by 2020.
As part of the 2016 Fall Economic Statement, the provincial Minister of Finance announced several tax policy amendments for 2017. One of the amendments allows municipalities to initiate a locally designed vacant unit and vacant/excess land subclasses program, subject to Ministerial approval. The Province is allowing municipalities to design their own policies to address local issues.
This new legislation allows municipalities to consider changes with respect to:
- Percentage reductions for vacant and excess land;
- Percentages used for vacant unit rebates;
- Administrative policies, application procedures and information requirements;
- Enhanced and refined eligibility requirements; and
- Elimination of a program.
Councillor Panciuk voted against eliminating the rebates, believing committed property owners deserved help to spruce up their properties to get vacant space leased. However, Panciuk added that he might be able to support Carr’s idea of using the money usually rebated to provide support to local businesses.
Councillor Miller declared an interest in Reports Item 8.a.1 (Vacant Unit Rebate Program Update #4) as his spouse is an employee of Pan Properties.
Mayor Christopher declared an interest in Reports Item 8.a.1 (Vacant Unit Rebate Program Update #4) as he is a commercial property owner.
Motion
Record: 8.a.1
VACANT UNIT REBATE PROGRAM UPDATE #4
MeetingTHAT pursuant to the Director of Finance/Treasurer’s Report No. DF-2017-36, Council approves the following resolution:
WHEREAS Section 364 of the Municipal Act, 2001 (‘the Act’) states that every local municipality shall have a program to provide tax rebates in respect of vacant portions of commercial and industrial properties;
AND WHEREAS recent amendments to that section of the Act have provided the Ontario Minister of Finance (‘the Minister’), with expanded authority to set locally specific program rules via regulation;
AND WHEREAS the Minister has invited upper and single tier municipalities to engage in local policy consideration and planning efforts and to make submissions to the Ministry of Finance detailing locally indicated reforms to this program;
AND WHEREAS the City of Belleville has engaged with its constituents to seek feedback in this regard;
AND WHEREAS the Council of the City of Belleville deems it appropriate to pursue the reform, and ultimately the elimination of the rebate program set out under Section 364 of the Act in order to better meet the broad objectives of the City and local property tax programs;
NOW THEREFORE be it resolved that the Council of the City of Belleville formally requests that the Minister of Finance enact the following reforms via special regulation;
THAT in accordance with subsection 364(12) of the Act, the following shall apply to 2018 and subsequent taxation years;
AND THAT no property classes, other than the commercial and industrial property classes, are prescribed for the purpose of Section 364 of the Act;
AND THAT the rebate percentages for the purposes of paragraphs 364(2) 2, 3 of the Act, are as follows:
(a) For the 2018 taxation year; 30.0 percent of the commercial property class and 30.0 percent for the industrial property class;
(b) For the 2019 taxation year; 15.0 percent for the commercial property class and 15.0 percent for the industrial property class;
(c) For the 2020 taxation year; 0.0 percent for the commercial property class and 0.0 percent for the industrial property class;
AND THAT the City of Belleville asks the Minister of Finance for the Province of Ontario to pass the required regulation for the eventual elimination of the Vacant Unit Tax Rebate Program for the City of Belleville.
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