December 23, 1998
CORPORATE SERVICES COMMITTEE:
City Council, at its meeting held on December 16 and 17, 1998, had before it the following Motion:
Moved by:Councillor Adams
Seconded by:Councillor Kinahan
"WHEREAS the Assessment and Tax Policy Task Force on November 20, 1998 gave consideration to a report
(November 16, 1998) from the City Solicitor and a communication from the Association of Municipalities of Ontario
(AMO) regarding Bill 79 - The Fairness for Property Taxpayers Act, 1998; and
WHEREAS many of the amendments made by Bill 79 do not apply to the City of Toronto because City Council passed a
by-law in July adopting the 2.5percent cap on the commercial, industrial and multi-residential property classes pursuant to
Part XXII.1 of the Municipal Act, as enacted by the Small Business and Charities Protection Act (Bill 16); and
WHEREAS, this by-law cannot be amended, and the City of Toronto is consequently precluded from adopting the
10-5-5percent cap pursuant to Bill 79; and
WHEREAS the City of Toronto is also precluded from raising the tax rate on any of the capped classes, and must raise
the rate on the residential class should it require additional revenue in 1999 or 2000 to meet its estimated expenditures;
and
WHEREAS while any other municipality opting for the 2.5percent cap faces the same restrictions, all municipalities
other than the City of Toronto have the option of choosing instead the 10-5-5percent cap and thereby not facing such
restrictions; and
WHEREAS Bill 79 is being considered this week by the Ontario Legislation;
NOW THEREFORE BE IT RESOLVED THAT City Council request the Province to enact legislation or amend Bill
79 so that the City of Toronto is treated equally with municipalities that adopt the 10-5-5percent cap to permit the City of
Toronto to increase the tax rate on the capped property classes if the City of Toronto needs to increase the municipal tax
rate."
Council also had before it, during consideration of the foregoing Motion, the following reports:
(i)(November 16, 1998) from the City Solicitor, providing an overview of the provisions of Bill 79 (the Fairness for
Property Taxpayers Act, 1998) and its relevance to the City of Toronto; informing that the Bill was introduced for first
reading in the legislature on November 5, 1998, the second reading is scheduled for November 23, 1998, the committee
hearings the week of November 30, 1998, and the third reading and Royal Assent the week of December7, 1998; and
recommending that the report be received for information.; and
(ii)(December 16, 1998) from the Chief Financial Officer and Treasurer reporting on Councillor Adams' motion on
requesting the Province to enact legislation or amend the "Fairness for Property Taxpayer, 1998" - Bill 79 to permit the
City to increase tax rate on the capped property classes so that the City is treated equally with other municipalities that
adopt capping; advising that in 1999 to 2000, under the current legislation for the City of Toronto, a 1 percent tax increase
raises $9.4 million and in 2001, a 1 percent tax increase raises $25.3 million; and recommending that if Council considers
a tax increase for 1999 and 2000, or simply wishes to have its tax flexibility restored, Council should request the Province
to amend Bill 79 to allow the entire City tax base to bear any tax increase or, failing that, to enact new legislation to
permit the City to increase the tax rate on the capped property classes.
Council referred the foregoing Motion, together with the reports dated November 16, 1998, from the City Solicitor, and
December 16, 1998, from the Chief Financial Officer and Treasurer, to the Corporate Services Committee for further
consideration.
for City Clerk
J.A.Abrams/dcm
Attach.
c. Chief Financial Officer and Treasurer
