2025 Tax Policy By-law (2025-045)

Owen Sound, Ontario

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The Corporation of the City of Owen Sound By-law No. 2025-045 A By-law to Adopt a Policy Respecting Taxes for the City of Owen Sound WHEREAS on February 24, 2025, the Council of The Corporation of the City of Owen Sound (the "City") passed By-law No. 2025-015 to adopt the estimates of all sums required during the year for the purposes of the City in accordance with section 290(1) of the Municipal Act, 2001, S.O. 2001 c.25, as amended (the "Municipal Act"); WHEREAS section 312 of the Municipal Act provides that the council of a local municipality shall, after the adoption of estimates for the year, pass a by-law to levy a separate tax rate on the assessment in each property class; and WHEREAS sections 307 and 308 of the Municipal Act require tax rates to be established in the same proportion to tax ratios; and WHEREAS a municipality may, in accordance with Section 329.1 of the Municipal Act and Ontario Regulation 73/03, modify the provisions and limits set out in Part IX of the Act, with respect to the calculation of taxes for municipal and school purposes for properties in the Multi-Residential, Commercial and Industrial property classes; and WHEREAS the municipality may, in accordance with the terms and provisions of Ontario Regulation 73/03 as made and amended under the Act, pass a by-law ending the application of Part IX of the Act for the Multi-Residential and Industrial property classes; and WHEREAS pursuant to an order under section 25.2 of the former Municipal Act, R.S.O. 1990, c. M.45, dated June 30, 2001 and Ontario Regulation 311/01 the Corporation of the City of Owen Sound (the "City") has maintained separate tax ratios from the County and establishes tax ratios pursuant to Ontario Regulation 311/01 and section 308(4) of the Municipal Act; and WHEREAS Ontario Regulation 311/01 provides that the City shall establish and levy, with respect to each upper-tier levy of the County under Section 311 of the Municipal Act, a separate tax rate on the assessment in each property class in the City rateable for purposes of the upper-tier levy sufficient to raise the City's portion of the upper-tier levy; and WHEREAS section 257.7(1) of the Education Act, R.S.O. 1990, c. E.2 (the "Education Act") provides that the City shall establish tax rates to be levied for all property classes for school board purposes; and WHEREAS section 208(1) of the Act provides that the City shall levy rates on all persons assessed for business assessment in the area designated by By-law No. PAGE 2 BY-LAW NO. 2025-045 2000-061 as an Improvement Area for the estimated expenditures determined by the Board of Management and approved by the Council of the City; and WHEREAS section 342 of the Act provides that a municipality may pass by-laws providing for the payment of taxes in instalments and due dates; and WHEREAS section 345 of the Act provides that a municipality may impose late payment charges in the form of penalties and interest for the non-payment of taxes or an instalment by the due date; and WHEREAS City Council may deem it expedient and necessary to defer the imposition of all new penalties and interest charges during a declared emergency and as such reserve the ability to direct the Treasurer not to impose any such late payment charges for non-payment or late payment of taxes for a period specified by City Council; and WHEREAS on April 14, 2025, City Council passed Resolution No. R-250324-003 authorizing the adoption of a policy respecting taxes, in consideration of staff report CR-25-027; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF OWEN SOUND HEREBY ENACTS AS FOLLOWS: Part I. Interpretation Short Title 1. This by-law shall be known as the "Tax Policy By-law". Headings 2. The division of this by-law into parts and the insertion of headings are for convenient reference only and shall not affect the interpretation of the by- law. References to Applicable Law 3. All references to applicable law are ambulatory and apply as amended from time to time. Definitions 4. For the purposes of this by-law: "Act" means the Municipal Act, 2001, S.O. 2001, c. 25; "City" means The Corporation of the City of Owen Sound; "County" means The Corporation of the County of Grey; "Treasurer" means the Treasurer appointed by the City. Part II. Optional Tools Administering Limits for Certain Property Classes 5. Having determined that the eligibility requirements set out under Section 8.2 of Ontario Regulation 73/03 have been met in respect of the Multi- Residential and Industrial property classes, the City opted to end the application of Part IX of the Act for these classes in 2016. 6. Having determined that the eligibility requirements set out under Section 8.3 of Ontario Regulation 73/03 have been met in respect of the Commercial property class, the City opted to phase-out the application of PAGE 3 BY-LAW NO. 2025-045 Part IX of the Act for that class with 2020 being the first year after the completion of the four-year phase-out. 7. Paragraphs 1, 2, and 3 of subsection 329.1(1) of the Act shall apply to the Commercial property classes. 8. In determining the amount of taxes for municipal and school purposes for the year under subsection 329(1) and the amount of the tenant's cap under subsection 332(5), the greater of the amounts determined under paragraphs a) and b) as set out below shall apply in determining the amount to be added under paragraph 2 of subsection 329(1), and the increasing amount under paragraph 2 of subsection 332(5). 9. The percentage set out in subsections 329(1) paragraph 2 and 332(5) paragraph 2 of the Act shall be ten per cent (10%). 10. The amount of the uncapped taxes for the previous year shall be multiplied by 10 per cent (10%). 11. The amount of the taxes for municipal and school purposes for a property for a taxation year shall be: a. the amount of the uncapped taxes for the property for the year if the amount of the uncapped taxes exceeds the amount of the taxes for municipal and school purposes for the property for the taxation year as determined under section, as modified under section 329.1 of the Act and this by-law, by five hundred dollars ($500.00) or less. 12. Paragraphs 1, 2 and 3, of section 8.0.2(2) of Ontario Regulation 73/03 shall apply to the Commercial property classes. 13. Properties shall be exempt from the capping calculations set out under Part IX of the Act. The capped taxes for the property in the previous year were: a. equal to its uncapped taxes for that year; b. lower than the property's uncapped taxes for that year, and the current year's capped taxes would be higher than the current year's uncapped taxes if Part IX were applied; and c. higher than the property's uncapped taxes for that year, and the current year's capped taxes would be lower than the current year's uncapped taxes if Part IX were applied. Administering Limits for Eligible Properties - New Construction 14. Paragraph 8 of subsection 329.1(1) of the Act shall apply to the Commercial property class. 15. For all properties that become eligible within the meaning of subsection 331 (20) of the Act, the taxes for municipal and school purposes for the year or portion of the year shall be the greater of: a. the amount of the taxes determined for the property for 2025 under subsection 331(2), and b. the amount of the uncapped taxes for the property for 2025 multiplied by one hundred per cent (100%). PAGE 4 BY-LAW NO. 2025-045 Part III. Tax Ratios and Tax Rates Establish Rates to be Levied Against the Assessment 16. The City shall levy upon the assessment values for all properties the tax rates for general purposes set out in Schedule A of this by-law. Tax Ratios 17. That for the taxation year 2025, the tax ratio for property in: a. the Residential property class is 1.000000; b. the Multi-Residential property class is 1.16947500; c. the New Multi-Residential property class is 1.000000 d. the Commercial property class is 1.715420; e. the Residual Industrial property class is 1.831000; f. the Large Industrial property class is 1.831000; g. the Pipelines property class is 2.95982500; h. the Farm property class is 0.250000; i. the Farmland Awaiting Development property class is 1.000000; and j. the Managed Forests property class is 0.250000. Tax Rate Reductions 18. The tax reduction used to establish the ratios for the subclasses below is: a. 75% for the subclass designated as R1 (taxable at the Farm Awaiting Development Phase I rate - registered plan stage). 19. There shall be no tax reduction in establishing the ratios for the Vacant Land, Vacant Units or Excess land subclasses in either of the Commercial or Industrial property classes, effective the passing of this by-law. Tax Rates Levied for School Board Purposes 20. The City shall levy upon all property classes the tax rate as prescribed by the Province of Ontario for school board purposes set out in Schedule C of this by-law. 21. The property tax levy for school board purposes raised from all property classes, as levied, shall be paid in accordance with the provisions of the Education Act and the Regulations made under it. Estimates for the Sums Required for the County of Grey 22. The City adopts the sum of Nine Million, Eight Hundred and Sixty Thousand, Two Hundred Fifty-One Dollars ($9,860,251) as the estimates of the property tax levy required for County Purposes. 23. The City shall levy upon the assessment values for all properties that have been derived from the assessment rolls the tax rates for County purposes set out in Schedule B of this by-law. PAGE 5 BY-LAW NO. 2025-045 Levy Rates on Business Classes for the Downtown Improvement Area 24. For the purposes of the board of management of the business improvement area, the City shall levy the amounts calculated for each prescribed business property class and subclass set out in the table below: Prescribed Business Rateable Special Total Special Class/Subclass Assessment Charge Charge Commercial $55,472,884 0.00476191% $ 264,156.90 Commercial Vacant $ 234,800 0.00476191% $ 1,118.09 Units & Excess Land Levy Rates for Utility Transmission Corridors 25. The City shall levy against utility transmission corridor acreage assessments the tax rate as prescribed by the Province for municipal and school board purposes. 26. The property tax levied by the City from utility transmission corridors for school board purposes shall be paid in accordance with the provisions of the Education Act and the Regulations passed thereunder. Part IV. Method of Tax Payments Timing 27. The balance of the rates and taxes assessed and levied respecting taxes in all wards and the Downtown Improvement Area levy shall be payable as follows: a. the first instalment shall be payable on the 27th day of June, 2025. b. the second instalment shall be payable on the 29th day of September, 2025. 28. If default is made in the payment of any instalment by the day named herein for payment thereof, the subsequent instalment or instalments shall forthwith become payable, and penalty will be charged in accordance with the City's Fees and Charges By-law or, where applicable, any successor by-law thereto. 29. During a declared emergency, Council may deem it expedient and necessary to defer the imposition of all new penalties and interest discussed above for late payment or non-payment of taxes for a period to be specified by Council or for the duration of the declared emergency. Pre-Authorized Tax Payment Plan 30. Payment may also be made in accordance with By-law No. 2013-094 which provides for an alternative pre-authorized tax payment plan. 31. No discount shall be allowed in respect of prepayment of the second instalment. Tax Bill 32. The Treasurer shall send a tax bill to the taxpayer in accordance with section 343 of the Act and have regard to the timing, contents and address for delivery set out in the Act 33. Pursuant to the provisions of section 348(1) of the Act, the Treasurer shall by February 28 in each year determine the position of every tax account as of December 31 of the preceding year. PAGE 6 BY-LAW NO. 2025-045 Part V. Enactment Enactment 34. This by-law shall come into full force and effect upon the final passing thereof at which time all by-laws, policies and resolutions that are inconsistent with the provisions of this by-law are hereby repealed insofar as it is necessary to give effect to the provisions of this by-law. FINALLY PASSED AND ENACTED this 12th day of May, 2025. ____________signature on file___ Deputy Mayor Scott Greig ____________signature on file___ Briana M. Bloomfield, City Clerk PAGE 7 BY-LAW NO. 2025-045 Schedule A - Tax Rates and Estimates for City Levy City Taxes RTC RTQ 2025 Tax Ratios CVA Weighted by Transition Tax Ratios 2025 EFFECTIVE Tax Rates Taxation Total Taxes by Major Classes PHASE-IN Assessment Taxable Residential/Farm RT 1,605,602,140 1.00000000 1,605,602,140 0.01430274 22,964,510 22,964,510 Multi-residential MT 154,606,367 1.16947500 180,808,281 0.01672670 2,586,054 2,586,054 New Multi-Residential NT 45,481,600 1.00000000 45,481,600 0.01430274 650,512 650,512 Com. Occupied CT 269,354,489 1.71542000 462,056,078 0.02453521 6,608,668 Com. Excess Land CU 2,190,681 1.71542000 3,757,938 0.02453521 53,749 Com. Vacant Land CX 4,102,600 1.71542000 7,037,682 0.02453521 100,658 Com. Occupied - full - shared PIL CH 619,000 1.71542000 1,061,845 0.02453521 15,187 Com Office Building Occupied DT 9,953,109 1.71542000 17,073,762 0.02453521 244,202 Com Shopping Centre Occupied ST 56,795,787 1.71542000 97,428,629 0.02453521 1,393,496 Com Shopping Centre Excess Land SU 1,060,100 1.71542000 1,818,517 0.02453521 26,010 Parking Lot- Full GT 89,000 1.71542000 152,672 0.02453521 2,184 8,444,154 Ind. Farmland 1 I1 85,000 0.25000000 21,250 0.00357569 304 Ind. Occupied IT 12,248,554 1.83100000 22,427,102 0.02618832 320,769 Ind. Excess Land IU 179,700 1.83100000 329,031 0.02618832 4,706 Ind. Vacant Land IX 2,764,900 1.83100000 5,062,532 0.02618832 72,408 Ind. Occupied - SHARED PIL IH 576,500 1.83100000 1,055,572 0.02618832 15,098 Large Industrial Occupied LT 15,355,200 1.83100000 28,115,371 0.02618832 402,127 Large Industrial Vacant units LU 177,100 1.83100000 324,270 0.02618832 4,638 820,049 Pipelines PT 6,151,000 2.95982500 18,205,884 0.04233361 260,394 260,394 Farmlands FT 3,452,800 0.25000000 863,200 0.00357569 12,346 12,346 Managed Forest TT 71,100 0.25000000 17,775 0.00357569 254 254 Total Taxable 2,190,916,727 2,498,701,131 35,738,273 35,738,273 Payment in Lieu Residential/Farm - General RG 6,600 1.00000000 6,600 0.01430274 94 94 Multi-residential MF 2,012,000 1.16947500 2,352,984 0.01672670 33,654 33,654 Com. Occupied - full CF 6,130,700 1.71542000 10,516,725 0.02453521 150,418 475,581 Com. Occupied - municipal CG 11,247,300 1.71542000 19,293,843 0.02453521 275,955 Com. Vac. Land - full Com Parking Lot CY GF 1,076,000 1.71542000 1.71542000 1,845,792 0.02453521 26,400 22,808 929,600 1,594,654 0.02453521 Total PIL 21,402,200 35,610,598 509,329 509,329 Taxable Assessment 2,212,318,927 2,534,311,729 36,247,602 36,247,602 Exempt Assessment 274,091,800 Total Municipal Assessment 2,486,410,727 PAGE 8 BY-LAW NO. 2025-045 Schedule B - Estimates of the Sums Required for Grey County County Taxes RTC RTQ 2025 Tax Ratios CVA Weighted by Transition Tax Ratios 2025 EFFECTIVE Tax Rates Taxation Total Taxes by Major Classes PHASE-IN Assessment Taxable Residential/Farm RT 1,605,602,140 1.00000000 1,605,602,140 0.00389070 6,246,916 6,246,916 Multi-residential MT 154,606,367 1.16947500 180,808,281 0.00455008 703,471 703,471 New Multi-Residential NT 45,481,600 1.00000000 45,481,600 0.00389070 176,955 176,955 Com. Occupied CT 269,354,489 1.71542000 462,056,078 0.00667418 1,797,723 Com. Excess Land CU 2,190,681 1.71542000 3,757,938 0.00667418 14,621 Com. Vacant Land CX 4,102,600 1.71542000 7,037,682 0.00667418 27,382 Com. Occupied - full - shared PIL CH 619,000 1.71542000 1,061,845 0.00667418 4,131 Com Office Building Occupied DT 9,953,109 1.71542000 17,073,762 0.00667418 66,429 Com Shopping Centre Occupied ST 56,795,787 1.71542000 97,428,629 0.00667418 379,066 Com Shopping Centre Excess Land SU 1,060,100 1.71542000 1,818,517 0.00667418 7,075 Parking Lot- Full GT 89,000 1.71542000 152,672 0.00667418 594 2,297,020 Ind. Farmland 1 I1 85,000 0.25000000 21,250 0.00097268 83 Ind. Occupied IT 12,248,554 1.83100000 22,427,102 0.00712387 87,257 Ind. Excess Land IU 179,700 1.83100000 329,031 0.00712387 1,280 Ind. Vacant Land IX 2,764,900 1.83100000 5,062,532 0.00712387 19,697 Ind. Occupied - SHARED PIL IH 576,500 1.83100000 1,055,572 0.00712387 4,107 Large Industrial Occupied LT 15,355,200 1.83100000 28,115,371 0.00712387 109,388 Large Industrial Vacant units LU 177,100 1.83100000 324,270 0.00712387 1,262 223,074 Pipelines PT 6,151,000 2.95982500 18,205,884 0.01151579 70,834 70,834 Farmlands FT 3,452,800 0.25000000 863,200 0.00097268 3,358 3,358 Managed Forest TT 71,100 0.25000000 17,775 0.00097268 69 69 Total Taxable 2,190,916,727 2,498,701,131 9,721,698 9,721,698 Payment in Lieu Residential/Farm - General RG 6,600 1.00000000 6,600 0.00389070 26 26 Multi-residential MF 2,012,000 1.16947500 2,352,984 0.00455008 9,155 9,155 Com. Occupied - full CF 6,130,700 1.71542000 10,516,725 0.00667418 40,917 129,370 Com. Occupied - municipal CG 11,247,300 1.71542000 19,293,843 0.00667418 75,067 Com. Vac. Land - full Com Parking Lot CY GF 1,076,000 1.71542000 1.71542000 1,845,792 0.00667418 7,181 929,600 1,594,654 0.00667418 6,204 Total PIL 21,402,200 35,610,598 138,550 138,550 Taxable Assessment 2,212,318,927 2,534,311,729 9,860,248 9,860,248 Exempt Assessment 274,091,800 Total Municipal Assessment 2,486,410,727 PAGE 9 BY-LAW NO. 2025-045 Schedule C - Tax Rates Levied for School Board Purposes Education RTC RTQ 2025 Tax Ratios CVA Weighted by Transition Tax Ratios 2025 EFFECTIVE Tax Rates Taxation Total Taxes by Major Classes PHASE-IN Assessment Taxable Residential/Farm RT 1,605,602,140 1.00000000 1,605,602,140 0.00153000 2,456,571 2,456,571 Multi-residential MT 154,606,367 1.16947500 1.00000000 1.71542000 1.71542000 1.71542000 1.71542000 180,808,281 0.00153000 236,548 236,548 New Multi-Residential NT 45,481,600 45,481,600 0.00153000 69,587 69,587 Com. Occupied Com. Excess Land Com. Vacant Land Com. Occupied - full - shared PIL Com Office Building Occupied Com Shopping Centre Occupied Com Shopping Centre Excess Land Parking Lot- Full CT CU CX CH DT ST SU GT 269,354,489 462,056,078 0.00880000 0.00880000 0.00880000 0.01250000 0.00880000 0.00880000 2,370,320 2,190,681 3,757,938 19,278 4,102,600 7,037,682 36,103 619,000 1,061,845 7,738 9,953,109 1.71542000 17,073,762 87,587 56,795,787 1.71542000 97,428,629 499,803 1,060,100 1.71542000 1,818,517 0.00880000 9,329 89,000 1.71542000 152,672 0.00880000 783 3,030,940 Ind. Farmland 1 Ind. Occupied Ind. Excess Land Ind. Vacant Land Ind. Occupied - SHARED PIL Large Industrial Occupied Large Industrial Vacant units I1 IT IU IX IH LT LU 85,000 0.25000000 21,250 0.00038250 33 12,248,554 1.83100000 22,427,102 0.00880000 107,787 179,700 1.83100000 329,031 0.00880000 1,581 2,764,900 1.83100000 5,062,532 0.00880000 24,331 576,500 1.83100000 1,055,572 0.01250000 7,206 15,355,200 1.83100000 28,115,371 0.00880000 135,126 177,100 1.83100000 324,270 0.00880000 1,558 277,623 Pipelines PT 6,151,000 2.95982500 18,205,884 0.00880000 54,129 54,129 Farmlands FT 3,452,800 0.25000000 863,200 0.00038250 1,321 1,321 Managed Forest TT 71,100 0.25000000 17,775 0.00038250 27 27 Total Taxable 2,190,916,727 2,498,701,131 6,126,746 6,126,746 Payment in Lieu Residential/Farm - General RG 6,600 1.00000000 6,600 0.00000000 0 0 Multi-residential MF 2,012,000 1.16947500 1.71542000 1.71542000 1.71542000 1.71542000 2,352,984 0.00153000 3,078 3,078 Com. Occupied - full Com. Occupied - municipal Com. Vac. Land - full Com Parking Lot CF CG CY GF 6,130,700 10,516,725 0.01250000 76,634 101,704 11,247,300 19,293,843 0.00000000 0 1,076,000 1,845,792 0.01250000 13,450 929,600 1,594,654 0.01250000 11,620 Total PIL 21,402,200 35,610,598 104,782 104,782 Taxable Assessment 2,212,318,927 2,534,311,729 6,231,528 6,231,528 Exempt Assessment 274,091,800 Total Municipal Assessment 2,486,410,727