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Provincial Land Tax Page 1 of2 Provincial Land Tax The Pro vi ncial Land Ta x (PLT) is the property tax that applies in unincorporated areas in Northern Ontario. The Province is responsible for setting PLT rates, which have not been adjusted to increase revenues since the 1950s. As a result, PLT rates are significantly lower than property tax rates in Northern municipalities. The 2013 Ontario Economic Outlook and Fiscal Review announced a review of the PLT. This was reiterated in the 2014 Ontario Budget and 2014 Ontario Economic Outlook and Fiscal Review, in which the government co mmitted to consult with unincorporated area and Northern municipal representatives and to address Northern stakeholders' concerns in a fair and balanced way. PLT rates were frozen for 2014 at the 2013 rates while assessment increases continue to be phased in. t Key Facts Total Provincial La nd Tax (PLT) Revenue $11 Million Combined Total Revenue for Local Roads Boards (LRB) and Local Services Boa rds (LSB) $9.3 Million Average Residential PLT $164 Total Number of Properties 63,000 Number of Households (including seasonal and permanent) ~ 43,307 *Source: Municipal Property Assessment Corporation. As part of the PLT review, the Ministry of Finance has been consulting with Northern stakeholders on the future of PLT. The consultation summary paper, Provincial Land Tax Review: A Summary of Stakeholder Consultations, is now available. This paper reflects what we have heard to date from representatives of unincorporated areas and Northern municipalities. It lays out the issues that were raised, and provides ba ckground information that is intended to be useful in further discussions. We would like to hear from everyone interested in contributing to the PLT review, particularly residents and other property owners in unincorporated areas and in Northern municipalities. In addition to feedback on the paper, we are interested in continuing to receive your general input. Please continue to send us your questions, suggestions or comments. Please send us your feedback on the paper by Wednesday, January 21, 2015. How to Contact Us: http://www.tin.gov.on.calenlconsultations/landtaxrefonnlindex.html 12/12/2014 Provincial Land Tax Page 2 of2 Email: [email protected] Mail: Provincial Land Tax Reform Office Ministry of Finan ce Provincial Local Finance Division 777 Bay Street 10th Floor Toronto, ON M5G 2e8 Learn more about provincial Land Tax http;//www.tin.gov.on.calenlconsultationsllandtaxreforrnlindex.html 12/12/20 14 Provincial Land Tax Review: A Summary of Stakeholder Consultations Feedback Received To Date December 2014 [;>OntariO Table of Contents Overview ....•.........•.•., .......•...•......•...... ..........................................................•.............•.......•.••...•.•......•. " ...... 1 Consultation Process to Date ................. " ....... ,,, ............... ,, .......................................... ", ........................... 2 Consultations with Unincorporated Area Representatives ......... ... ....................................................... 2 Written Submissions Received ............................................................................................................... 3 Northern Municipalities .. .. ........ ............................................................................................................. 3 Provincial land Tax Information .................................................................................................................4 What Is the Provincial land Ta x? ........................................................................................................... 4 Information on Unincorpor.lted Areas .................................................................................................. 6 Properties in Unincorporated Areas ............................................................................................... ... 6 Property Assessment in Unincorporated Areas ................................................................................. 6 Differences in Municipal and Unincorporated Area Tax Bases ................ ....... .. .................. ... ........... 7 Unincorporated Areas and School Boards ... ... ........................................ ...... ......................... ............ 8 What We Heard: Summary of Perspectives on PlT .................................................................................... 9 Municipal Perspectives ...................................................................................................................... 9 Unincorporated Area Perspectives .................................................................................................... 9 Concerns about Tax Equity ...................................................................................................................... 11 A. Inequities between Municipal Ta xes and PlT .............................................................................. ll Charges Paid by Unincorporated Area Residents ....................................................... ..................... 12 B. Concerns about Inequity among Unincorporated Area Taxpayers ............................................. 15 History of PlT ......................... .......................................................................................................... 17 Why PlT Rates Vary inside and outside Schoolboard Areas .... .. ...................................................... 21 Other EqUity-related Matters ....................... ................................................................................... 21 Services in the North ................................................................................................................................ 23 Use of Municipal Services by Unincorporated Area Residents ........................................................ 23 Differences in Services between Unincorporated Areas and Northern Municipalities ................... 23 Diversity of Unincorporated Areas ............................................. .... ................................................. 24 Provincial Funding of Services in Unincorporated Areas ................................................................. 24 Northern Municipalities' Expenditures on Services ......................................................................... 27 Provincial Funding for Municipalities ........................................................................................ .... ... 27 User Fees and Municipal Service Provision ................................................. .................................... 28 Assessment Services .......................................................... .............................................................. 28 local Roads Boards and local Services Boards ............................................... ................................. 28 Understanding Unincorporated Areas and Northern Municipalities ...................................................... 29 Challenges Common to the North ................................................................................................... 29 Distinctiveness of Unincorporated Areas ............................................................................ .. ... ....... 29 What Is Working Well ....................................... .. ........ ..................... ........................................................ 30 local Roads Boards and local Services Boards .. .. ................. ... .... ............................................ ........ 30 Su pport from Provincial Staff .... .. ...................... ........... .. ................... ....................................... ...... .. 30 One-bill System ................. ........................ .............................. ........................... .............................. 30 Online Property Tax Analysis Application (OPTA) ................................... .. .... ................................... 30 Opportunities for Improvement ....................................... .. ........... .......................................................... 31 User Fees .. ......... ... ... .... .................. ............. ....... .. .............. ........................ ........ ...... ... .... .................. 31 Improvements for local Roads and Services Boards ................................. " .. ..... ........ ... ....... ... ........ 31 Tax Arrears .............. ............. ............................ ...... .................." .. ....................... .. .. ... .. ... ........... .... .. 31 Impact of Resource Development Companies on local Infrastructure ........................................... 32 Planning and Development .............................................................................................................. 32 Next Steps ................. ................................................. .............................................................................. 33 How to Contact Us ........................ ................................................. .............................................. .. .... .. 33 Glossary ............................................................. .. ......... ......................... ................................................... 34 Appendix 1: Ust of local Roads and Services Boards in Unincorporated Areas ...................................... 35 Appendix 2:
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