Assessment and Tax Policy Task Force -

Terms of Reference

The Strategic Policies and Priorities Committee recommends that Council reaffirm the Terms of Reference for the Assessment and Tax Policy Task Force, embodied in the following communication (February 8, 1999) from the City Clerk, subject to the Task Force reporting to Council through the Strategic Policies and Priorities Committee:

Recommendation:

It is recommended that the Assessment and Tax Policy Task Force reaffirms its recommendations to the Strategic Policies and Priorities Committee respecting its proposed Terms of Reference.

Background:

The Assessment and Tax Policy Task Force, on February 5, 1999, had before it a communication (December 22, 1998) from the City Clerk forwarding the action of the Strategic Policies and Priorities Committee from its meeting held on December 15, 1998, in which it deferred consideration of the recommendations of the Assessment and Tax Policy Task Force contained in the communication (December 2, 1998) from the City Clerk, pending the review of the Council-Committee governance structure by Council.

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(Communication dated December 22, 1998, addressed to the

Assessment and Tax Policy Task Force, from the City Clerk)

The Strategic Policies and Priorities Committee on December 15, 1998, had before it a communication (December 2, 1998) from the City Clerk forwarding the action of the Assessment and Tax Policy Task Force from its meeting of November 20, 1998, respecting Assessment and Tax Policy Tax Force - Terms of Reference and recommending:

(1)that the following Terms of Reference be adopted for the Assessment and Tax Policy Task Force:

(a)To meet as a working reference group to provide political direction to Finance Officials in the preparation of comprehensive tax policies in advance of the return of the 1999 Current Value assessment, (taking effect in 2001) including:

(i)review the tax burden for each property class, including the advantages and disadvantages of different tax rates for the residential, multi-residential, commercial and industrial property classes;

(ii)develop comprehensive tax policies for the multi-residential, commercial and industrial classes, including a permanent solution (ie. 2001) to ensure property tax equity between property classes;

(iii)develop long term (ie. 2001) tax policies to protect charitable and similar organizations in the commercial and industrial classes;

(iv)work towards a recommendation that a portion of a resident's property taxes be based on income;

(b)To develop a process to consult interested stakeholders on proposed tax policies for the 2001 reassessment;

(c)To review hardship cases arising from the 2.5 percent cap on charitable and similar non-profit organizations during the 1998-2000 period;

(d)To review criteria for an enhanced tax relief program for low-income seniors and disabled persons;

(e)To review a mechanism to establish a general tax deferral program for all low-income home owners;

(f)To review ways and means to protect the City's tax base;

(g)To continue efforts to persuade the Provincial Government to exempt veterans' club houses from the education portion of the property tax; and

(h)To provide options for Council, should legislation change in the future; and

(2)The Assessment and Tax Policy Task Force report directly to City Council because deputations are made at the Task Force level and not at the Strategic Policies and Priorities Committee level.

Action:

The Strategic Policies and Priorities Committee deferred consideration of the recommendations of the Assessment and Tax Policy Task Force contained in the communication (December 2, 1998) from the City Clerk, pending the review of the Council-Committee governance structure by Council.

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(Communication dated December 2, 1998, addressed

to the Strategic Policies and Priorities Committee

from the City Clerk)

Recommendations:

The Assessment and Tax Policy Task Force recommends:

(1)that the following Terms of Reference be adopted for the Assessment and Tax Policy Task Force:

(a)To meet as a working reference group to provide political direction to Finance Officials in the preparation of comprehensive tax policies in advance of the return of the 1999 Current Value assessment, (taking effect in 2001) including:

(i)review the tax burden for each property class, including the advantages and disadvantages of different tax rates for the residential, multi-residential, commercial and industrial property classes;

(ii)develop comprehensive tax policies for the multi-residential, commercial and industrial classes, including a permanent solution (ie. 2001) to ensure property tax equity between property classes;

(iii)develop long term (ie. 2001) tax policies to protect charitable and similar organizations in the commercial and industrial classes;

(iv)work towards a recommendation that a portion of a resident's property taxes be based on income;

(b)To develop a process to consult interested stakeholders on proposed tax policies for the 2001 reassessment;

(c)To review hardship cases arising from the 2.5 percent cap on charitable and similar non-profit organizations during the 1998-2000 period;

(d)To review criteria for an enhanced tax relief program for low-income seniors and disabled persons;

(e)To review a mechanism to establish a general tax deferral program for all low-income home owners;

(f)To review ways and means to protect the City's tax base;

(g)To continue efforts to persuade the Provincial Government to exempt veterans' club houses from the education portion of the property tax; and

(h)To provide options for Council, should legislation change in the future; and

(2)The Assessment and Tax Policy Task Force report directly to City Council because deputations are made at the Task Force level and not at the Strategic Policies and Priorities Committee level.

Background:

The Assessment and Tax Policy Task Force on November 20, 1998, gave consideration to a communication from Councillor Adams forwarding the proposed Terms of Reference. The Task Force also had before it a copy of Clause 1 of Report No. 17 of The Strategic Policies and Priorities Committee, headed "Status of Special Committees and Task Forces", which was adopted, as amended, by the Council of the City of Toronto at its meeting held on October 1 and 2, 1998.

The Task Force's recommendations are noted above.

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(Proposed Terms of Reference - Assessment and Tax Policy Task Force)

(1)To meet as a working reference group to provide political direction to Finance Officials in the preparation of comprehensive tax policies in advance of the return of the 1999 Current Value assessment, (taking effect in 2001) including:

(a)review the tax burden for each property class, including the advantages and disadvantages of different tax rates for the residential, multi-residential, commercial and industrial property classes;

(b)develop comprehensive tax policies for the multi-residential, commercial and industrial classes, including a permanent solution (ie. 2001) to ensure property tax equity between property classes;

(c)develop long term (ie. 2001) tax policies to protect charitable and similar organizations in the commercial and industrial classes;

(d)work towards a recommendation that a portion of a resident's property taxes be based on income;

(2)To develop a process to consult interested stakeholders on proposed tax policies for the 2001 reassessment;

(3)To review hardship cases arising from the 2.5 percent cap on charitable and similar non-profit organizations during the 1998-2000 period;

(4)To review criteria for an enhanced tax relief program for low-income seniors and disabled persons;

(5)To review a mechanism to establish a general tax deferral program for all low-income home owners;

(6)To review ways and means to protect the City's tax base;

(7)To continue efforts to persuade the Provincial Government to exempt veterans' club houses from the education portion of the property tax; and

(8)To provide options for Council, should legislation change in the future.

The Assessment and Tax Policy Task Force shall continue to report to Council through the Strategic Policies and Priorities Committee.

November 20, 1998

(A copy of the communication (October 22, 1998, addressed to the Assessment and Tax Policy Task Force, from the City Clerk; and Clause No. 1 of Report No. 17 of the Strategic Policies and Priorities Committee, entitled "Status of Special Committees and Task Forces", which was attached to the foregoing communication, was forwarded to all Members of Council with the February 23, 1999, agenda of the Strategic Policies and Priorities Committee and a copy thereof is also on file in the office of the City Clerk.)