Property Tax and Current Value Assessment (CVA) Level Comments

Each year in the Budget presentation to Council information is provided to address the overall Budget/Tax situation for the Town of Georgina as it relates to other Municipalities.

There are always comparisons made in regard to the tax rate for the Town of Georgina, as we do have the highest tax rate of the Area Municipalities in York Region. This is sometimes taken to imply that Georgina has the highest taxes in comparison to those same municipalities. This is not the case when all factors are considered and this summary is posted to provide the reasons why.

There are two components to the property tax calculation for any Ontario Municipality. The first is the determination of the annual operating expenditures required by that body to provide the services for its residents. The second is the total current market value of the assessment base (value of all rateable property within the Town) over which this operating expenditure is to be recovered.

The calculation of a tax rate, simply put, is just an exercise of dividing the budgeted operating expenditure by the total assessment values.

To understand this exercise in the Town of Georgina, there are two key points that everyone should be aware of which affect this final tax rate determination for outside comparison.

1. The costs to provide services by the Town of Georgina are not a lot different than that for our neighbours to the south. The price of gas, repairs, equipment, fire truck purchases, etc., does not change because of our location and the majority of our costs are the same.
2. There is however, considerable difference in the market value of properties in Georgina as compared to our neighbours to the south. This is the key factor which leads to the tax rate difference and the critical comments raised when tax rates alone are reviewed. The Municipal Property Assessment Corporation (MPAC) advises that the average assessment for a Residential property in Georgina for 2006 is $219,000 compared for example to East Gwillimbury of $332,000 or Newmarket of $304,150

As such, it should not automatically be assumed that the taxes for a similar house (similar meaning square footage and features, not real estate sales value) will be higher in the Town of Georgina because of a higher tax rate calculation. Houses with the same market value assessment would of course pay more in Georgina than within another area municipality in York Region, however, we would be comparing homes of totally different square footage/features, etc.

The comparison of the tax level in the Town of Georgina, can best be illustrated by some factual information produced in a report entitled "Municipal Competitive Study - 2005". This report, (Executive Summary for the Georgina portion) was prepared independently by the firm of BMA Consulting Inc. on behalf of 67 regional, local and single tier municipalities in Ontario.

A quick scan of that report will outline direct comparisons of average residential taxes for a comparable detached bungalow in each area, assessment values per capita as well as net levy per capita. In all summaries the Town of Georgina ranked in the lower categories. Anyone interested in doing such a direct comparison will find this report of interest, complete copies of which are available at the Civic Centre, Treasurer's office.

Further inquiries or explanations regarding comparable tax levels or rates in the Town of Georgina can be sent directly to David Reddon, Manager of Taxation and Revenue dreddon@georgina.ca

Inquiries regarding the calculation of current value assessment should be directed to MPAC at 1-866-296-6722.