Lanark County Council Sets 2019 Taxation Policies
Lanark County Council has passed by-laws related to 2019 taxation policy, including tax ratios and levy apportionment to local municipalities.
Council passed the 2019 budget in January with a levy of $34.6 million and a net tax increase of 2.2 per cent, which is collected through the towns and townships.
In a presentation to council, CAO Kurt Greaves explained that council apportions the tax burden between the various tax classes, determines how much of the levy comes from each municipality and decides on the mandatory continuation of tax protection (capping) for the commercial and industrial tax classes.
When the levy is established, council then sets tax ratios, which distribute taxes between the various classes (e.g. industrial, commercial, residential).
“The recommendation from the Lanark County treasurers is to again adopt revenue neutral tax ratios,” Mr. Greaves explained. “This ensures that reassessment does not shift the tax burden between the tax classes.”
The county will refund its portion of landfill taxation to local municipalities, which was a new property tax and tax ratio introduced in 2017.
Greaves noted the number of properties affected by the capping rebates following reassessment continues to decline and there are capping options available to allow municipalities to slowly reduce the number of properties in capping/claw-back situations.
He said the recommendation is to adopt all the provisions to eliminate capping in the near future. The current value assessment for Lanark County is almost $9 billion, with the residential class paying 85.6 per cent of the taxes.
The county portion of the tax bill is only one of three components on the tax bill, with the local municipality and education portion making up the balance.
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