but they also use property values from 8 years ago.
That’s true across the province. That has no impact on the total amount collected, though.
It really only means that properties that have been improved over those years might be paying less than their fair share (with others paying more than their fair share). That might be of concern to individuals, but makes no difference to the city.
Can you explain how that has no impact on the total amount collected.
If the tax is a percentage of property value and the property is being intentionally under valued then if they were assessed at their current value after 8 years of growth would that not increase total amount collected?
The income expectations are determined first, then the mill rate is established based on income expectations. The assessment values determine the proportional share each property pays, but they do not affect the total amount. The city doesn’t collect more just because property values are higher. If a city has constant income needs then the tax rate will go down if assessments come in higher.
But Toronto is not having its income needs met, all while having some of the lowest property taxes in the province, both in tax rate and in property receipt amounts. The solution seems pretty obvious.
Wait till you find out not only have they not been increasing the tax rate but they also use property values from 8 years ago.
That’s true across the province. That has no impact on the total amount collected, though.
It really only means that properties that have been improved over those years might be paying less than their fair share (with others paying more than their fair share). That might be of concern to individuals, but makes no difference to the city.
Can you explain how that has no impact on the total amount collected.
If the tax is a percentage of property value and the property is being intentionally under valued then if they were assessed at their current value after 8 years of growth would that not increase total amount collected?
The income expectations are determined first, then the mill rate is established based on income expectations. The assessment values determine the proportional share each property pays, but they do not affect the total amount. The city doesn’t collect more just because property values are higher. If a city has constant income needs then the tax rate will go down if assessments come in higher.
But Toronto is not having its income needs met, all while having some of the lowest property taxes in the province, both in tax rate and in property receipt amounts. The solution seems pretty obvious.
Property tax in general disincentivises improving properties. We should really switch to a land value tax