This report outlines a proposed information and communication strategy that supports both a public education campaign that informs the public of the tax reform issues related to reassessment and a plan detailing the distribution of the preliminary estimated tax impacts on a property by property basis.

The reassessment and property taxation reforms affect all taxpayers in the city and represent major undertakings requiring Council to keep residents and businesses informed of the related key issues and Council=s decisions and their subsequent impact on taxpayers. Funding in the amount of $250,000.00 will need to be budgeted for the information and communication activities contained in the report.

It is recommended that:

The Fair Municipal Finance Act, 1997 (Nos. 1 and 2) which was passed by the Ontario Legislature in 1997 introduces major reforms to the property assessment and taxation system in Ontario. The reforms require Council to make several important decisions about tax policies and tax rates in the next couple of months. This report identifies a number of activities that Council can pursue to communicate information specific to reassessment and taxation reform as part of keeping taxpayers informed.

In preparation of providing the public with details related to reassessment, staff responsible for developing tax policy proposals on property taxation reform, have worked with the corporate information and communication group to develop this information and communication strategy. The reassessment and tax policy information and communications plan consists of four phases.

Phase I - Interim Tax Bill Information Campaign:

The purpose of Phase I is to advise taxpayers in general, and more specifically businesses, of impending changes to the assessment and taxation system. This information has been communicated primarily through newspaper advertisements and inserts contained in the interim tax bills. The interim levy by-law was adopted by Council at its meeting on January 6 and 8, 1998.

Taxpayers have also been advised that the tax changes will not appear on the interim tax bill, but will be included in the final tax bill. However, businesses are advised that the interim tax bill is adjusted to raise more than 50 percent of last year=s taxes (as is normally the practice) in order to replace foregone business occupancy tax revenues. Consequently, interim taxes for commercial and industrial properties are generally calculated as 50 percent of both 1997 realty and business taxes. Exhibit 1 provides an outline of the communication activities planned that comprise Phase I. The Phase I component of the plan has been completed.

Phase II - Preliminary Estimated Tax Impacts:

The activities that constitute Phase II are intended to disseminate information pertaining to the preliminary estimated tax impacts on a property by property basis. The estimated tax impacts are developed from the preliminary assessment data provided by the Province in early February. In addition to the public release of the tax estimates, information packages summarizing the estimated tax changes will be provided to Council and will also be made available to the public. The tax impacts represent initial estimates and are subject to change as Council reviews alternative implementation scenarios all of which are subject to revision pending final budgetary considerations and the final assessment roll which is to be delivered by April 30. The preliminary status of the estimates will be emphasized throughout the information and communication campaign.

The Province has authority and is required under the Assessment Act to establish the final assessment roll as a public record. The preliminary assessment data provided by the Province to the City combined with the tax estimates and potential impacts, results in creation of a record which has not been established under statute as a public record. This new record of information is subject to the Municipal Freedom of Information and Protection of Privacy Act. Accordingly, it is appropriate to balance the need for broad public dissemination of the information with reasonable measures to protect privacy.

The Director of Corporate Access and Privacy, Toronto Clerk=s Department, has advised the Ontario Information and Privacy Commissioner (the Commissioner) of the proposed plans and privacy protection measures for disseminating the tax estimates and potential impacts. The Commissioner appreciates the privacy protective approach proposed by the City. However, this cannot be interpreted as a final decision related to any privacy complaints or access request appeals, which may be made and subsequently adjudicated by the Commissioner. Notwithstanding the result of an adjudication process, privacy is an issue of increasing public concern and a conservative approach appears warranted in these circumstances.

Phase II, as does the entire information and communications plan, supports the dissemination of data to inform the public of tax details and potential impacts in a manner that respects privacy. Only the assessment roll number or municipal address is required to allow property owners to identify the tax details and potential impact on each property. To protect privacy, the names of individual property owners will not be listed and electronic copies will not be publicly distributed. Unlike paper records, information disseminated in electronic form is subject to computer matching and subsequent uses beyond those for which the data was provided to the City. Printed copies of the estimated tax impact information will be made available in publicly accessible locations including municipal libraries and the existing civic centres.

Members of Council will be provided with a CD version of the detailed preliminary tax impact estimates for their own ward to facilitate liaison with constituents on the matter of tax reform. To protect privacy, Councillors are requested not to make copies of the CD version of the estimated preliminary tax data. Councillors are also requested to return the CD diskettes upon implementation of Council=s tax plan later in the spring. Any requests for copies of the CD diskettes or data in an electronic format from the public are to be referred to the Director of Corporate Access and Privacy. This report recommends that Council approve these measures to protect the privacy of property owners.

The estimated tax data, albeit preliminary, ensures that taxpayers will be informed, particularly should they attend the information sessions conducted by the Province which commence in late February and continue throughout March. The assessment notices mailed in early February contain the new estimated current value assessments. Together, the assessment information from the Province and the estimated tax data from the City will provide taxpayers with sufficient information to know how they are affected by the reassessment.

A public consultation component has not been identified as part of the information and communication plan in this report per se. A public consultation process plays a vital role. However, it is considered appropriate that such a consultation process should be developed by the task force or committee that is recommended to be established in the companion report.

Phase III - Proposed Tax Implementation Plan:

Phase III informs the public of the details of the proposed tax implementation plan to be considered by Council. The information would be communicated in newspaper advertisements prior to Council=s meeting to be scheduled in mid-May. The ads would provide a summary of the proposed tax rates, so taxpayers could calculate the impact of the plan on their property, as well as details about phase-in and tax relief programs. Copies of the summary information would also be made available through the civic centres. Details of Phase III activities are shown in Exhibit 3.

Phase IV - Final Tax Implementation Plan:

Phase IV advises taxpayers of the details of the property tax plan approved by Council. This information will be communicated primarily through a brochure. Council will also advise residential taxpayers of its tax relief plan for low-income seniors and low-income persons with disabilities and stipulate eligibility criteria and other program details. The brochure and information on a tax relief plan will be included with the final tax bill.

In the fall, Council will notify by way of general communications to landlords and tenants in apartment buildings, which experience more than a provincially established level of tax decrease, that rents effective January 1999 should be reduced as a result of reassessment. The City is required to send such notices under the new Tenant Protection Act. The activities that make-up Phase IV are outlined in Exhibit 4.

The proposed information and communications strategy supports key Council actions to inform the public of the changes to their taxes resulting from reassessment and tax policy decisions. An estimated $250,000.00 is required to fund the planned activities (excluding notices to landlords and tenants which will be the subject of a later report).

Ed Desousa 394-8205

Bill Wong 392-9148

Ed Zamparo 392-8641

CCCC

EXHIBIT 1

OUTLINE OF PHASE I - INTERIM TAX BILL INFORMATION CAMPAIGN ACTIVITIES

EXHIBIT 2

OUTLINE OF PHASE II - PRELIMINARY ESTIMATED TAX IMPACTS ACTIVITIES

EXHIBIT 3

OUTLINE OF PHASE III - PROPOSED TAX IMPLEMENTATION PLAN ACTIVITIES

EXHIBIT 4

OUTLINE OF PHASE IV - FINAL TAX IMPLEMENTATION PLAN ACTIVITIES

The Assessment and Tax Policy Task Force, on February 19, 1998, recommended to the Strategic Policies and Priorities Committee:

The Assessment and Tax Policy Task Force had before it a report (February 10, 1998) from the Chief Administrative Officer and Chief Financial Officer and Treasurer respecting a Reassessment and Tax Policy Information and Communications Plan.