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1997 Levy on Public Hospitals, Universities and
Colleges and Correctional Institutions
The Strategic Policies and Priorities Committee recommends the adoption of the
recommendation embodied in the following transmittal letter (April 6, 1998) from the
Chair of the Assessment and Tax Policy Task Force:
Recommendation:
On behalf of the members of the Assessment and Tax Policy Task Force who were present on
April 6, 1998, I am forwarding the following recommendation to the Strategic Policies and
Priorities Committee for consideration:
That the Province of Ontario be requested to change the legislation for public hospitals,
universities and colleges, and correctional institutions so that these properties pay their
fair share of Municipal Property Tax according to their assessed value, and that the
Province also be requested to provide the necessary funding to these institutions.
Background:
The Assessment and Tax Policy Task Force, having regard for the fact that no quorum was
present at the specified time and in view of the fact that notice had been placed in the newspaper
that a public hearing would be held on the Property Assessment and Tax Policy System recently
implemented by the Provincial Government, heard presentations from the public on this matter
and continued to meet informally and to discuss this and other matters.
The members of the Assessment and Task Policy Task Force who were present had before them
a report (April 2, 1998) from the Chief Financial Officer and Treasurer providing information
regarding the 1997 levy for public hospitals, universities and colleges and correctional
institutions in the City of Toronto. The grants received by municipalities are not based on
property assessment and tax rates but rather a flat rate of $75.00 per rated capacity as specified in
the Municipal Act.
As Chair of the Assessment and Tax Policy Task Force, I am forwarding the abovementioned
recommendation to the Strategic Policies and Priorities Committee for consideration.
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(Report dated April 2, 1998, addressed to the
Assessment and Tax Policy Task Force from
the Chief Financial Officer and Treasurer)
Purpose:
The purpose of this report is provide the Task Force with information regarding the 1997 levy for
public hospitals, universities and colleges and correctional institutions in the City of Toronto.
The grants received by municipalities are not based on property assessment and tax rates but
rather a flat rate of $75.00 per rated capacity as specified in the Municipal Act.
Recommendation:
It is recommended that this report be received for information.
Comments:
Public hospitals, university and colleges and correctional institutions in Ontario are exempt from
paying property tax. However, Section 157 of the Municipal Act allows municipalities to
annually levy up to a maximum of $75.00 for each provincially rated hospital bed (public
hospitals); $75.00 for each full time student (universities and colleges); and, $75.00 for each
resident place (correctional institutions). The capacity figures for these institutions which are
used by municipalities for this levy are determined by the Province and forwarded to
municipalities by the Ministry of Municipal Affairs. The grants are paid by the Provincial
Government.
The total 1997 levy for these institutions in each of the former municipalities of Metropolitan
Toronto was as follow:
| 1997 Levy for Public Hospitals, University /Colleges, and
Correctional Institutions (Based on $75 per rated capacity) |
| Municipality |
Capacity |
Levy |
| East York |
1,160 |
$87,000 |
| Etobicoke |
13,257 |
$994,275 |
| North York |
40,266 |
$3,019,950 |
| Scarborough |
15,044 |
$1,288,300 |
| Toronto |
59,576 |
$4,468,200 |
| York |
1,081 |
$81,075 |
| TOTAL |
130,384 |
$9,938,800 |
The provisions in the Municipal Act for the levy have not been changed for 1998. As a result,
the Province will continue to pay a grant to municipalities for these types of institutions based on
$75.00 per rated capacity.
Staff have completed a preliminary review of the new CVA assessments but have not been able
to confirm whether the data provides a complete list all of these types of properties. However,
the CVA for properties identified totals $3.7 billion. The application of the 1998 preliminary
residential tax rate of for municipal share only (0.78 percent of the total 1.24 percent) results in a
total tax of $29 million. Since the Province does not pay grants for the education costs, that
portion of the rate is excluded. As grants for these properties have never been based on their
assessed values, it may be necessary to confirm the validity of the CVA figures with Ministry of
Finance staff.
Since Section 157 of the Municipal Act specifically excludes grants being based on tax rates, the
amount to be derived from hospitals, colleges and correctional institutions will continue to be
based on the $75.00 flat levy unless legislation is amended.
This report is for information.
Contact Name:
Paul Wealleans, Phone: 392-6955, Fax: 392-0364.
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