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HomeMy WebLinkAboutZurich Citizens News, 1976-08-11, Page 16Page 16 -Citizens News, August 11, 1976 Jack Riddell 1 would like to take this opport- unity to give you further informa- tion on the Government's Pro- posals for Tax Reform. in view of the fact that a Commission is conducting a series of meetings throughout the Province this sum- mer and fall to review these proposals. 'All public property except residences will he subject to payments in lieu of taxes equal to full taxes at 100 per cent of market value. Public residences will be subject to payments in lieu of taxes equivalent to full taxes at 50 per cent of market value. Public utilities will be subject to business assessment at 50 per cent of market value. "As is the present case, chur- ches. cemeteries and property field in trust for a band or body of Indians will be exempt. All other presently exempt property will he taxed at- 100 per cent of market value. except residences which will be taxed at 50 per cent of market \ alue. "A uniform method of phasing - in the new tax SySteni over a period of up to five years will be available to prevent abrupt tax changes. "Assessment rolls will he re- turned and enumeration will be performed every two years to coincide with local government elections. "Assessment on provincial government property will be pooled and assigned between the public and separate elementary schools in the same proportion as the taxable assessment assigned by the •owners and occupants of residences. "Costs shared among munici- palities will he shared on the basis of the assessment on which taxes and payments in lieu of taxes are based. ..Where assessment is to he used to determine the grant to be paid to a municipality, the assessment used will he the assessment on which taxes and payments in lieu of taxes at'e based. i.. Tic provisions c1 The Assess- ment s assnient Act will apply to the assess- ment of all real property in Ontario, including areas without municipal organization. "Public bodies which receive provincial grants, such as school hoards, will be allowed to include their property tax 'payments as allowable expenses for grant purposes. "Ontario's property tax credits which relate property taxes to the ability to pay will, if necess- ary. be strengthened upon imple- mentation of the new system." Included in the Government's Commitsion reviews tax proposals booklet on Property Tax Reform , is a preliminary analysis of pro- ' posed reforms. According to this analysis, "large tax shifts would occur if market value assessment were • introduced and applied against the present property tax struc- ture. This simply reflects the fart that the values of different types of properties have changed at different rates. For example, the market value of residences has increased more rapidly than the value of most business pro- perties. Also, the market value of single family residences has increased more rapidly than the market value of multiple rental residences. And. the great- est escalation in market value has occurred for vacant lands. "As reassessment has pro- gressed. the impact of potential tax shifts has been analysed by the Province. in particular, the Region of Niagara has been extensively analysed as a test area. On the basis of such an analysis the 15 preceding propos- als (mentioned in this and last week's report) for changes in the property tax system have been designed (0 prevent bax shifts w'hicll are either undesirable or too rapid to accommodate. "The Region of Niagara con- tains most of the kinds of pro- perty, that exist in Ontario. includ- ing single family residences, mul- tiple rental residences. farms, commercial. industrial and gover- nment properties. Because of this, the Region has been chosen as a test area 10 analyse first, hoti• market value assess- ment, using the present system of taxation, would result in large changes in property taxes for different kinds of property, and second, how the proposals for a new tax .system would affect property tax distribution. "In this analysis, farm resid- ences and other farm property have been arbitrarily divided and are not assessed at market value as proposed. The tax levy has been increased by 'the 00101101 of taxes that local governments will have to pay in respect of their own property. The levy has also been adjusted upward to reflect increased taxes ori pro- vincial properties and corespond- ing decreases in provincial grants. "The analysis has been based on the taxation of residences at 50 per cent of market value and all other real property at 100 per cent o1' market Btisi- n_Css assessment has been set at o ' property vela e. Cr 'Cat l .( cent Furthermore, currently exempt government and non-government properties have been taxed at 100 per cent of market value. These percentages have been selected to obtain a distribution ofp P . ro erty taxes in the Region of Niagara in keeping with the proposals. These percentages could change. as further analyses involving other areas of the pro- vince are completed," Results of the analysis of the Region of Niagara are given in a detailed table,, but the most significant 'features may be sum- marised as follows: "Using the present tax system along with market value assessment, taxes on residences would increase $3.1 million or 7.4 per cent. Using the proposed tax system in conjunction with market value assessment, taxes on residences decrease by $10.2 million or '24.3 per cent. "Net taxes on farm properties under the present tax system would increase by $ .5 million or 45.5 per cent. This compares with a decrease of $ .2 niillion or 18.2 per cent tinder the proposed tax system. Provincial payments in respect of ('arm properties would increase by $2.5 million. "The realty taxes on commer- cial and industrial properties under the present tax system would decrease by $4.4 niillion .or 20.4 per cent. Under the proposed tax system, this de- crease would be only $1.2 niillion or 5.6 per cent. "The business tax on commer- cial and industrial properties under the present tax system would decrease by $2.4 million or 25.0 per cent, but increase by $ .7 niillion or 7.3 per cent under the proposed tax system. "Payments to lieu of taxes on federal governtlletit property would change very little under the present tax :system, but increase $1.2 niillion under the proposed system which includes the taxa- tion of previously exempt federal property. "Payments in lieu of taxes and payment of the Farni Tax Reduc- tion by the Province each would increase $ .5 million under the present tax system for a total increased cost to the Province of $1 niillion. Under the proposed tax system, the increased cost -to the Province is 57.2 million. This increase is made up of $2.5 million in farm assistance and $4.7 million in payments in lieu of tuxes. The cost to the ' Province includes payments in lieu of taxes on Ontario Hydro property. "Payments in lieu oI' taxes on municipal property would change very little raider the present tax syStenl, but would inrrL'atic 51.7 million under the proposed sys- tem. "Schools are exempt from property taxation under the pre- sent tax system. Under the pro- posed tax system, schools would be taxed. In Niagara, the tax on schools would be $6,3 million, "Taxes on previously exempt private property would be $4.1. niillion under the proposed tax system, "Taxes on other property, which includes vacant land, would increase $2.2 million under the present tax system, as com- pared to $5.6 million under the proposed tax system. 1 would like to stress the fact that I have made no attempt to give my own views on the Govern- ment's proposed Tax Reform. This has been quite deliberate. I felt it was. important to give you the background information con- tained in the Budget papers, rather than my own view of the situation, at this time, aka SAUSAGE .e $1.19 BONELESS 4 - 5 LB. AVG. Butt Roast Butt Chops SCHNEIDERS Weiners HOMEMADE Headcheese 6 LB. BOX BY THE POUND Inquire about prices on sides and quarters of Local Feed Lot Beef. We will cut and wrap to your specification CUSTOM SLAUGHTERING BEEF MONDAY PORK TUESDAY Laporte Meat Market MAIN ST ZURICH 236-4962 SUMMER STOCK 20% TO 50% OFF LADIES Summer Slacks '/s PRICE SANDALS 1/2 PRICE Assorted Tops '/2 PRICE SKIRTS Reg. up to $19.00 $700 EA. Large Selection of leans, Overalls and Vests. Levis and Scrubbies Watch for Our Pottery Sale MR. AND MRS.. ALVIN BECKER Carol Ann Shackleton andf�A�IvinJ� �Michael Becker were united in marriage July 24 at Berea By -The -Water Lutheran Church in Goderich by Rev. Marvin Barz, The bride's parents are Mr. and. Mrs. Benson Shackleton, RR 1, Dungannon and bride's; and Mrs. Rudolph Becker, RR 1, Dashwood are parents of the groom. Valerie Shackleton was the maid of honour and the .bridesmcfids were Evelyn McClinchey and Helen Osbourne. The best man was'John Becker and guests were ushered by Jim Becker and Gerald Shackleton. After a wedding trip to Northern Ontario the couple is residing on Concession 14 of Hay township. photo by Haugh 47 MAiN ST. GRAND BEND 238-2358