Capping & Clawback Adjustments to Non-Residential Properties
Tax capping refers to limitations on annual property tax increases for certain commercial, industrial and multi-residential properties. Tax capping was introduced to protect properties from large property tax increases as a result of implementing Current Value Assessment (CVA) in 1998.
- In order to capture the lost revenue from properties that are capped, the City annually calculates a clawback rate that effectively results in withholding part of a property’s decrease due to reassessment.
- The Province of Ontario legislated tax capping in 1998 as a temporary tool intended to transition properties to full CVA taxation.
City Council will be reviewing tax policy options in 2018 and will be considering options to ensure fairness in taxation.
To learn more about the changes to Capping/Clawback, visit Non-residential Property Tax Strategies.