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.
To learn more about the changes to Capping/Clawback, visit Non-residential Property Tax Strategies.