This is the exact embedded text of the captured official document.
Snapshot c7a3fc4e4eec · verified 2026-08-23 ·
original document ·
archived snapshot ·
unofficial consolidation, the official version is held by the municipal clerk.
By-law No. 2026-041
Tax Policy By-law
Table of Contents
Part I. Interpretation .................................................................................. 4
Short Title ......................................................................................... 4
Headings ........................................................................................... 4
References to Applicable Law ............................................................... 4
Definitions ......................................................................................... 4
Part II. Optional Tools ................................................................................ 4
Administering Limits for Certain Property Classes ................................... 4
Administering Limits for Eligible Properties - New Construction ................ 5
Part III. Tax Ratios and Tax Rates ............................................................... 6
Establish Rates to be Levied Against the Assessment .............................. 6
Tax Ratios ......................................................................................... 6
Tax Rate Reductions ........................................................................... 6
Tax Rates Levied for School Board Purposes .......................................... 6
Estimates for the Sums Required for the County of Grey ......................... 6
Levy Rates on Business Classes for the Downtown Improvement Area ...... 7
Levy Rates for Utility Transmission Corridors ......................................... 7
Part IV. Method of Tax Payments ................................................................. 7
Timing .............................................................................................. 7
Pre-Authorized Tax Payment Plan ......................................................... 7
Tax Bill ............................................................................................. 7
Part V. Enactment ..................................................................................... 8
Enactment ......................................................................................... 8
Consolidated Version
Revision History:
Passed On:
Description of
amendment
2026-041
April 27, 2026
original
2026-069
June 15, 2026
Reference policy no.
AF020 in s.30
Consolidated for Convenience Only
This is a consolidation copy of a City of Owen Sound By-law for convenience and
information. While every effort is made to ensure the accuracy of this by-law, it
is not an official version or a legal document. The original by-law should be
consulted for all interpretations and applications on this subject. For more
information or to view by-laws please contact the Clerks Department.
The Corporation of the City of Owen Sound
By-law No. 2026-041
A By-law to Adopt a Policy Respecting Taxes
for the City of Owen Sound
WHEREAS on December 22, 2025, the Mayor of The Corporation of the City of
Owen Sound (the "City") tabled their proposed 2026 budget of all sums required
during the year for the purposes of the City, and on February 9, 2026 final
budget amendments were confirmed by City Council and the budget was deemed
to be adopted;
WHEREAS section 312 of the Municipal Act, 2001, S.O. 2001 c.25, as amended
(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 the Province of Ontario approved Ontario Regulation 297/25 under the
Education Act, R.S.O. 1990, c. E.2 (the "Education Act") amending Ontario
Regulation 400/98 to prescribe the education rates for the assessment in each
property class for 2026; 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.
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 13, 2026, City Council passed Resolution No. R-260413-005
directing staff to bring forward a by-law to authorize the collection of 2026
property taxes based on the approved tax ratios and rates, in consideration of
staff report CR-26-038;
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
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 2026 under
subsection 331(2), and
b.
the amount of the uncapped taxes for the property for 2026
multiplied by one hundred per cent (100%).
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 2026, the tax ratio for property in:
a.
the Residential property class is 1.000000;
b.
the Multi-Residential property class is 1.000000;
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 Ten Million, Two Hundred and Eighty-Eight
Thousand, Four Hundred Seventy-Three Dollars ($10,288,473) 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.
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
$56,072,411 0.00482899% $ 270,773.15
Commercial Vacant
$ 234,800 0.00482899% $ 1,133.85
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 30th day of June, 2026.
b.
the second instalment shall be payable on the 29th day of
September, 2026.
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 section 19 of the City's Tax
Collection and Billing Policy AF020.
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.
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 27th day of April, 2026.
__signature on file_____________
Mayor Ian C. Boddy
__signature on file_____________
Briana M. Bloomfield, City Clerk
Schedule A - Tax Rates and Estimates for City Levy
Schedule B - Estimates of the Sums Required for Grey County
Schedule C - Tax Rates Levied for School Board Purposes