Taxation recommendations from Dr Hamilton’s Report

Recommendation #1

The tax ratio paid by the Light Industrial Class (Class 5) should be reduced from its current level (approximately 5.8) to a ratio of 3.0 and that the cost of this reduction is to be borne by the Residential Class (Class 1). Further, this reduction in the tax ratio for the Light Industrial Class should be phased-in equally over a three year period.

  • We reviewed the properties listed in the Light Industrial Class.  Many of them are major companies.  Instead of lowering this over 3 years and putting this onto the residential class, we requested staff to look into some of those business that we felt were incorrectly classed.  Once they were removed, we would then look at whether or not we would consider decreasing their ratio to the recommended 3.0 and increase residential further.
  • In a nutshell, instead of a 3 year phase in period with an increase at 33% each year, we went with a 5 year phase in period with a 20% increase.  During this time, we have given ourselves further time to revisit why we would advance a tax ration decrease to large corporations.

Recommendation #2


The City should reduce the tax ratio of the Business Class to 2.7 from the current 2.968 and do so in equal steps over four years and that the cost of this change in the tax ratio is to be borne by the Residential Class (Class 1).

  • This has been a gradual process.  The 2011 ratio was 2.7982 (Residential Ratio is the base: 1)

Recommendation #3

The City should discontinue the present $50.00 parcel tax on Class one properties and build the equivalent aggregate tax revenue into the residential mill rate.

  • Done

Recommendation #4


The City should, within the coming year, determine a new policy for the mill rate borne by Major Industrial Class.

  • Done, we no longer use the Port rate that was originally used.

Recommendation #5

The City develop a strategy for boundary extensions, a strategy that addresses a “fair revenue sharing” with the Province that considers the implications of having individuals just outside the City limits that use, but do not necessarily pay, for some City provided services.

  • We have initiated a boundary expansion