HomeMy WebLinkAboutTaxation Structure Policy
Cape Breton Regional Municipality's
Service Based Tax Structure
As Approved by CBRM Council
on August 16,1996
(Rates with phasing approved September 3, 1996)
Cape Breton Regional Municipality
September 11 , 1996
A Service Based Tax System for the Cape Breton Regional Municipality
Cape Breton Regional Municipality
Douglas B. Foster - Director of Planning
Civic Center
320 Esplanade,
Sydney, Nova Scotia
NS B1P 1A7
Tel: (902) 563-5088
Fax: (902) 539-9419
Internet: dbfoster@fox.nstn.ca
September 16, 1996
To the reader:
This report summarizes the taxation structure adopted by the Cape Breton Regional Municipality
on August 16, 1996. It Includes the tax rates set for 1996-97 on September 3, 1996, which is
based on the budget approved May 8, 1996.
The tax structure was developed and recommended to Council by the Planning Advisory
Committee under the Chairmanship of District 1 Councilor Dannie Hansen, with technical advice
from the Planning Department.
Inquiries can be directed to the undersigned.
Sincerely,
Douglas Foster, MCIP
Director of Planning
df/DF
Cape Breton Regional Municipality
A Service Based Tax System for the Cape Breton Regional Municipality
TABLE OF CONTENTS
1. ISSUE.................................................................................................................................................. 1
2. THE PRINCIPLES: ........................................................................................................................... 1
3. BACKGROUND.................................................................................................................................2
4. LEGAL FRAMEWORK....................................................................................................................3
5. THE THREE REQUIREMENTS FOR DIFFERENTIALLY RATING A SERVICE.................... 4
6. SERVICES NOT USED FOR DIFFERENTIAL RATING............................................................... 5
A. POLICE......................................................................................................................... .................... 5
B. CURB, GUTTER, AND STORM DRAINAGE............................................................................................. 5
C. SIDEWALKS...................................................................................................................... ................. 6
D. ROADs.......................................................................................................................... .................... 6
E. STREET LIGHTING........................................................................................................................ ..... 7
F. GARBAGE COLLECTION..................................................................................................................... . 7
G. INCINERATOR / LANDFILL.................................................................................................................. 7
H. RECREATION PROGRAMMING............................................................................................................. 8
I. PARKS & GROUNDS MAINTENANCE..................................................................................................... 8
1. PIPED WATER........................................................................................................................ ............. 8
K. LONG TERM DEBT RETIREMENT........................................................................................................ 9
L. DEFICIT RETIREMENT...................................................................................................................... .. 9
7. SERVICES ON WHICH DIFFERENTIAL RATING IS BASED.................................................. 10
A. CORPORATE SERVICES AND ADMINISTRATIVE BUILDING COSTS ........................................................ 10
B. SEWER......................................................................................................................... ................... 10
C. FIRE HyDRANTS....................................................................................................................... ....... 11
D. FIRE PROTECTION..................................................................................................................... ...... 11
E. TRANSIT........................................................................................................................ ................. 12
8. THE SERVICE BASED TAX S TR U CTURE.................................................................................. 13
A. "THE TAX STRUCTURE"................................................................................................................... 13
B. PHASING....................................................................................................................... .................. 15
9. SUMMARY OF INFORMATION FROM 1996 ASSESSMENT ROLL AND PID-AAN MATCH
PROJECT ............................................................................................................................................. 17
10. ASSESSMENT DATA FROM THE PID-AAN MATCH.............................................................. 18
11.1996 RATES: SERVICE BASED TAXATION PHASED OVER yEARS................................... 19
12. SUMMARY .................................................................................................................................... 23
MAP - SERVICE BASED TAX STRUCTURE
MAP - TAXATION AREA, COMBINED SERVICES
Cape Breton Regional Municipality
A Service Based Tax System for the Cape Breton Regional Municipality
1. Issue
The Regional Municipality of Cape Breton has developed and approved a
property tax system which is:
-based on services received,
-applies to all property fairly and
-generates the revenue required.
2. The Principles:
Over the course of many staff reports and Planning Advisory Committee
Meetings, and four days of Council discussion the following principles
evolved as a basis for a new taxation system for the Region:
1. That the tax structure should be based on level of services provided.
2. That the tax structure be characterized by urban, suburban and rural
designations.
3. That the tax structure incorporate area rating for services not reflected
in the base rate.
4. That the tax structure incorporate a different rate for residential and
commercial assessment.
5. That the tax structure implementation be phased in.
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A Service Based Tax System for the Cape Breton Regional Municipality
3. Background
The Planning Advisory Committee and the Planning Department worked
over 1995-96 to create adequate geographic information on services and
assessment as a basis for the new tax structure based on services received.
Fire service boundaries, transit, sewer, and fire hydrant locations were
digitized and analyzed in the Region's Geographic Information System
(GIS).
The Public Works Department has checked the sewer information to
ensure completeness. New digital property boundaries and 1: 10,000 digital
base mapping from the Land Information Management Service have been
acquired for this work.
Finally, a linkage has been created between 62,000 unique property
identifiers (PIDs) and 56,000 Assessment Account numbers. As of June
25, staff achieved a 99.7% match between these two databases. The data
has been turned back to the Assessment and Land Information divisions
within Municipal Affairs for ongoing maintenance of the matched
information. Assessment account numbers and Property Identifiers (AANs
and PIDs) are now assigned to every land document registered.
Both the budget and the required tax levy were approved by Council at the
May 8, 1996 Council.
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A Service Based Tax System for the Cape Breton Regional Municipality
4. Legal Framework
Legislatively, under Bill 63, Council has authority to levy up to three base
rates - a general (urban rate), a suburban rate and a rural rate. These three
categories can be taxed on both commercial and residential assessment.
F or each base rate, a separate commercial and residential rate can be set.
The residential rate is set as a percentage of the commercial rate not
exceeding 100% of the commercial rate.
Beyond this basic authority, there is a broad authority under Section 97 (2)
to area rate for local services; however, this rate can only apply to
residential assessment, not to commercial. Fire hydrants are an exception
under Section 96 (2). Council can area rate on both residential and
commercial assessment, but unlike the base rates, hydrant rates must be
identical on both commercial and residential assessment.
The fact that Council cannot area rate on commercial assessment has
already been discussed by PAC and Council. A resolution has been passed
requesting that the Minister of Municipal Affairs amend Bill 63 allowing
area rating on commercial, as well as residential assessment.
The underlying principle behind a service based approach is that properties
with the same level of service should pay the same tax rate.
Once the premise of equal taxation for equal service was accepted, the
questions that followed were: which services are delivered, how many
service levels exist, and what services are to people as opposed to property
(people services are usually not suitable for differential rating).
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A Service Based Tax System for the Cape Breton Regional Municipality
5. The Three Requirements for Differentially Rating a Service
1. Direct Property Link
The service must be directly tied to specific properties and not to others,
or the service is provided at several different service levels across the
region. (An example of a service provided to all taxpayers, but at different
levels, is the fire service. This service varies from the full career level to all
volunteer and several levels which combine paid employees with
volunteers. )
2. Discrete Boundaries
We must be able to identify the cost of service delivery and tie it to discrete
service boundaries.
3. Stability
Where the service meets the first two tests, the linkage between service
and cost as well as the service delivery boundaries must be reasonably
stable. If either factor changes frequently, the annual assessment and
taxation cycle cannot keep pace with change, creating instability. This, in
turn, makes the service unsuitable for differential rating.
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A Service Based Tax System for the Cape Breton Regional Municipality
6. Services Not used for Differential Rating
Each of the following services was examined by the Planning Advisory
Committee, and later followed by a summary of why they were not
included in the proposed differential rate:
A. Police
Although the policing service could be tied to discrete boundaries based on
the old municipal boundaries, differentially rating this service was rejected
because policing is considered primarily a service to people as opposed to
property.
Aside from the outcome regarding RCMP versus Regional Policing,
rationalization of service delivery boundaries for more efficient service
delivery is needed. In the Policin2: Reoort submitted to Council by Gordon
MacInnis, it is noted that in providing policing, the Regional Police force
now drives through territory policed by the RCMP and the RCMP
routinely do the opposite (e.g. Louisbourg area). As well, several business
areas are policed on one side of the road by one force and on the opposite
side by the other force. Locking these service boundaries to a differential
tax rate, would work against delivering the service more efficiently through
rationalization of service boundaries. The recommendation was approved
by Council on August 15, 1996.
B. Curb, Gutter, and Storm Drainage
On a regional scale, information, particularly in digital form, is lacking on
curb and gutter. The Director of Engineering and Works expressed the
point that curb and gutter is an integral part of the street system required to
drain the road as opposed to a service to the abutting property. (See PAC
minutes May 1, 1996.)
Past practice in the previous municipal units varied. In some cases in the
County of Cape Breton, the capital cost of curb, gutter and storm drainage
was frontage rated to abutting residents. Some of these capital costs were
still being paid off as frontage rates in 1995-96. In some cases, this cost
was shared up to 80% by the Province; in other cases, the entire cost was
put on an area rate. In the City and Towns, these expenditures were
funded from the general rate. Because of these past funding differences, to
implement a service based system on an even playing field for all property
taxpayers, it was recommended that all frontage and area rates for prior
capital expenditures be eliminated effective April 1, 1996 andfundedfrom
general rates. Council approved this August 14, 1996.
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A Service Based Tax System for the Cape Breton Regional Municipality
c. Sidewalks
Most sidewalk capital construction was previously funded from general
rates or under ProvincialIFederal programs, although a few in the former
County were funded from area rates. Maintenance normally was funded
from general rates, but the level of maintenance varied widely even within
the Towns and City. Some Towns ploughed all sidewalks while others
ploughed on a priority system which varied with snowfall conditions.
Arterial streets and sidewalks leading to schools often had priority, but
some major sidewalks were not ploughed at all.
Sidewalks and sidewalk maintenance appear to have a somewhat
fluctuating service delivery. In some measure, it acts as a service to
neighborhoods, schools and hospitals, rather than to property frontage.
The cost of maintaining and ploughing sidewalks can be separately
identified (somewhat over 1 million annually); however, digital information
on sidewalks does not yet exist. It would otherwise be a reasonable
candidate for differential rating.
Until we have sidewalks digitized, the operating costs must be included in a
general rate. This recommendation was approved by Council on August
15, 1996; however, Council also passed a motion, at the same meeting, to
bring the area rating of sidewalks back for reconsideration when digitizing
of sidewalks has been completed.
D. Roads
Roads are one of the more complicated services from a financial
standpoint. Most of the road system in the former County is maintained by
the Province, although 209.71 kilometers of this is paid for by the Region.
Some capital costs of road paving in the former County were charged back
on frontage.
Maintenance costs of roads are covered in the general rates, with the
Region doing some maintenance on unlisted private roads and "bungalow
roads". Service levels vary widely, but this is generally in proportion to the
amount of traffic.
Since virtually all taxpayers use the roads and benefit from the road system,
PAC recommended that this service be funded from the general rate and
that any prior frontage or area rates for road paving be absorbed in the
general budget effective April 1, 1996. Council approved this
recommendation on August 16, 1996.
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A Service Based Tax System for the Cape Breton Regional Municipality
E. Street Lighting
Street lighting is a service which could be differentially rated on the basis
that some properties have it while others do not; however, there are
arguments to be made that street lighting is related to road safety and
public safety, as much as serving abutting residents.
The information on street lighting is not complete in digital form. A rough
calculation however, was possible based on an assumption that all property
within the former Towns and City had streetlights. Using the information
on street lights from the County GIS project, a large majority of the
assessment in the former County is served by street lights. Assigning the
cost oflighting only to those who have it within 500 feet of their property
would make a difference of less than $20 annually for those who have no
street lights.
Because the digital information is not adequate to differentially rate on
lighting, the differential service cost is very small; moreover, because the
service is also a public safety issue, PAC did not recommend it for
differential rating. Council approved this recommendation on August 16,
1996.
F. Garbage Collection
All residential taxpayers in the Region receive garbage collection, although
the service cost varies and collection is both public sector in some parts of
the Region and private in others.
Because the service is universal, PAC did not recommend differential
rating. Leaving the service on the general rate will allow rationalization of
service on the basis of the most efficient pickup routes rather than on old
municipal boundaries. Council approved this recommendation on August
16, 1996.
G. Incinerator / Landfill
Because all taxpayers use and benefit from solid waste disposal, it was not
considered for differential rating. This was approved by Council on August
16, 1996.
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A Service Based Tax System for the Cape Breton Regional Municipality
H. Recreation Programming
Much discussion and debate took place at the Planning Advisory
Committee on the question of differentially rating the cost of recreation
programming. Although there is merit that the most outlying rural
residents do not receive as much benefit from recreation facilities and
programming, the geographic distribution of benefits is different for each
program. Some programs are generally available and used by all.
Essentially, recreational programming is a service to people and the benefit
is therefore very difficult to differentially charge to one property as
opposed to another. PAC could not recommend a differential rating
system for recreation programming. Council approved this
recommendation on August 16, 1996.
I. Parks & Grounds Maintenance
Although the costs of facility maintenance can be separated, the question of
which properties benefit from a facility becomes problematic since they are
essentially services to people as opposed to property. PAC did not
recommend a differential rating system for parks and grounds maintenance.
Council approved this recommendation on August 16, 1996.
J. Piped Water
In Nova Scotia, water is supplied on a user pay basis by a utility which is
separate from the municipality. Charges for supplying water are regulated
by the Utility and Review Board and is generally a user pay system based
on either flat rates or metering to customers. Based on an amount
determined by the Utility and Review Board, the cost of fire protection is
separated out and charged to the Municipality. The former Towns and
City paid these amounts from the general rate as did the former County.
This matter is dealt with under fire hydrants. Council received and
accepted this as information on August 16, 1996.
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A Service Based Tax System for the Cape Breton Regional Municipality
K. Long Term Debt Retirement
A calculation showing the cost of area rating back all long term debts and
operating deficits has been submitted and considered by PAC (see
Appendix 1 - Debt and Deficits area rating). Long term debt at
amalgamation amounted to eleven million dollars.
Council at its meeting on June 25, 1996 adopted a capital budget which
will pay down capital debt and gradually finance more capital out of
revenue. Area rating of debt would conflict with this approach.
PAC recommended the elimination of all area and frontage rates effective
April 1, 1996, either area rates or frontage rates may well be a central tool
of capital funding in the future. The reason for eliminating these charges
now is to put all taxpayers in the Region on an even playing field. Council
approved the recommendation to consolidate all long term debt in the
general rate on August 14, 1996, as well as eliminating all area and
frontage rates effective April 1, 1996.
L. Deficit Retirement
The predecessor municipal units brought $3,038,590 in operating deficits
into the Regional amalgamation. This is evidence that the previous
municipal structure was not working. In the interests of overcoming
parochial thinking and adopting a regional approach, the Planning Advisory
Committee recommended that operating deficits be consolidated in the
general rate. Council approved this recommendation on August 14, 1996.
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A Service Based Tax System for the Cape Breton Regional Municipality
7. Services on which differential rating is based
The following services were evaluated and approved by Council for
inclusion in the differential taxation proposal:
A. Corporate Services and Administrative Building Costs
The corporate service side of the Regional Municipality includes services
which are not direct services to the taxpayer and are therefore not readily
assigned to one property over another. Services such as Human
Resources, the Solicitor's Office, Communications and Information
Technology and Planning provide services to the direct service departments
(e.g. payroll, legal advice and representation, recommendations to Council
on planning issues, etc.)
These services generally benefit those properties receiving more direct
services, therefore PAC recommended that the cost of the corporate
service side of the organization be charged to the direct service side of the
organization as overhead before the calculation of area rates. In this way,
the areas that benefit from higher service levels also pay a larger share of
general administrative costs. This cost has been calculated at $8,082,441
amounting to 16.82% of the budget. . Council approved this
recommendation on August 15, 1996.
B. Sewer
Sanitary sewer is one service that links directly to an individual property
and clearly should be differentially rated. PAC recommended that all
properties within 200 feet of a sewer be charged a uniform rate. When
charged on the residential rate alone, the charge in the 1996-97 budget is
$3,635,393 which reflects the cost of sewer maintenance plus an
administrative multiplier of 16.82%. The multiplier is used to add the
corporate service overhead to providing indirect services to the direct
service departments. When this cost is applied, the sewer cost is 20.6 cents
per hundred charged to both commercial and residential assessments as
part of the base rate in both the urban and suburban areas. The original
recommendation from PAC was to area rate sewer within the former City
area with the career fire service being the only defining characteristic of the
urban definition; however, Council amended the recommendation ofP AC
by including sewer service as the defining characteristic in the urban base
rate. Council approved the amended proposal on August 15, 1996.
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A Service Based Tax System for the Cape Breton Regional Municipality
c. Fire Hydrants
Fire Hydrants are a specific service which can be area rated under the
Region's legislation to both the commercial and residential assessment
within 1200 feet of a hydrant measured along the road. Fire hydrants must
be paid to the water utility as a separate charge distinct from water used for
domestic consumption.
The Utility and Review Board determines how much the municipality must
pay to the utility for this service. For the Regional Municipality, that
amount is 2,874,709 in this year's budget.
This gives us a rate of $0. 164 per hundred of assessment for commercial
and residential assessment for fire hydrants. Council approved the
application of the fire hydrant rate structure on August 15, 1996.
D. Fire Protection
Fire protection is a service which meets all of the tests for differential
rating. The service level ranges from completely volunteer to a full career
service. By the nature of the service, the 36 fire service areas must be
geographically defined. These boundaries are reasonably stable from year
to year. In all cases, the budgets of the fire departments include a 16.82%
administrative multiplier to cover the Corporate Service overhead.
The former County area is an all volunteer system but the areas served vary
in size and amount of assessment. Although the budgets are within the
same ballpark, the differences in geography and assessment would lead to
variations in rates by a tenfold factor. For this reason, PAC recommended
that the costs of the rural volunteer fire department ($ 2,639,123 )
be blended into one rural rate, amounting to 10.5 cents per
hundred in this years budget. Council approved the blended rural fire rate
on August 15, 1996.
The cost offire service in the former Towns varies as does the number of
paid firefighters. PAC recommended that these be area rated back to the
residents. Council approved this recommendation on August 15, 1996.
The former City of Sydney is the only fully career fire service and the most
expensive. During the discussion of this issue, it was determined that the
cost of this service was such that it would lead to a very high area rate if
only applied to residential assessment. PAC recommended it be the
defining characteristic for the urban rate, thus spreading the cost over the
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A Service Based Tax System for the Cape Breton Regional Municipality
commercial assessment as well as residential. The cost of the Sydney Fire
Department is $2,639,123 including the 16.82% administrative charge.
Council accepted this recommendation on August 15, 1996.
E. Transit
Transit is also a service that is available to some properties and not to
others, although it is arguable whether it is a property service. It can also
change as routes are added or dropped.
The cost of the transit subsidy is $1,441,589 netted against revenue
recovery including the 16.82% administrative charge. PAC recommended
that this cost be area rated to those properties within 2500 feet of a transit
line in order to place the cost on the areas served. The 2500 foot buffer is
the same as the distance used to calculate transit costs within the former
County of Halifax and Town of Bedford; this generally reflects a
reasonable walking distance along the road to a bus route.
PAC recommended that transit be area rated across the Region; but
Council made an amendment on August 15, 1996 to include transit within
the base rate of the urban area only.
Transit amounts to 13.3 cents on the tax rate for residential property only
within 2500 feet of the transit route and 9.2 cents on both residential and
commercial assessment within the urban area as part of the base rate.
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A Service Based Tax System for the Cape Breton Regional Municipality
8. The service Based Tax Structure
After the Committee weighed all the options, it resolved at its meeting on
Wednesday March 20, 1996, to recommend Approach 3 to Council. After
a thorough review, 13 staff reports, and many more meetings, the concept
was again recommended to Council on August 6, 1996. Council approved
the structure on August 16, 1996 and set rates under the new structure
based on a four year phasing on September 3, 1996. Detailed tax
calculations by area for this approach are included in Section 11 titled "The
Tax Structure"
A. "The Tax Structure"
DEFINITIONS: Urban is all properties served by a career fire service and
are served by municipal sewer i.e. the sewered portion of the former
City of Sydney. A rate for Fire Hydrants is the only additional area rate
where hydrants are availabe.
Suburban is all properties, which are within 200 feet of a sewer. Area
rates for Fire Protection, Transit, and Fire Hydrants also apply.
Rural is all properties beyond 200 feet of a sewer. Area rates for transit
and fire hydrants also apply. Fire service is area rated using a blended
rural rate of 10.5 cents per hundred on all residential assessment.
For the purposes of area rating for transit and fire hydrants, distances are
measured along the road centreline.
Tables in Appendix "A" show the rates using this approach. In the Urban
area of Sydney, most properties would be taxed at the urban rate which
includes all sewered property plus the hydrant rate; however, any
property not meeting the criteria for sewer, would receive a rural rate plus
an area rate for the Sydney fire service.
In the Suburban areas, seven different rates are possible depending on the
fire department (following old Town boundaries). Within each of seven
fire districts, four rates are possible depending on 1200 foot proximity to a
fire hydrant and 2500 foot proximity to a bus route, both, or neither.
Representative communities are listed which have the services; however,
there are other communities with the same service level and tax rate.
In the Rural area, four service levels are shown which depend on a 1200
foot proximity to a fire hydrant and 2500 foot proximity to a bus route. All
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A Service Based Tax System for the Cape Breton Regional Municipality
properties pay one blended rural fire rate of 10.5 cents per
hundred on all assessment. The charge for service provided to the rural
area from Louisbourg and North Sydney also come from this blended rural
rate. The tables following show a residential tax rate which is 35% of the
general (commercial) rate. A 35% ratio was used as a constant throughout
the Planning Advisory Committee deliberations to enable valid comparisons
between different approaches.
In other non-regional jurisdictions, the rule of thumb would suggest a
residential rate at about 50% of the general rate. This rule does not hold
up when the system involves area rating over 13 million dollars of a 57
million dollar levy, since the ratio applies only to the base rate. When a
comparison is made to the "bottom line" upon adding area rates, the
percentage is in the vicinity of the norm of 50%.
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B. Phasing
The question of phasing is one which is more complex and difficult than it
may first appear. The authority to phase is contained in Section 93 (8) of
the Cape Breton Regional Municipality Act. Under this section, Council
may levy a rural and suburban rate in addition to the general rate.
Council may also levy a separate rate designed to phase up or down from
the previous municipal rates, or it may phase up or down the commercial
residential ratio which existed in the former municipality. Council may also
levy a separate rate solely for the purpose of amortizing debt in the former
municipal units.
The problem with any of these approaches is that the system shifts from a
system based on mostly uniform rates within a municipal boundary to a
system based on the service level received. The basic philosophy of
taxation is shifting from arbitrary boundaries to services received
There are theoretically eight different service possibilities arising from the
service based approach which also exist in all but one of the former
municipalities. (Louisbourg does not have transit service, so only four
possibilities exist within the former Town, three of which actually occur in
Louisbourg.) This brings the total number of different tax changes from
the old system to the new to 59 different percentages of rate change.
When the commercial and residential rates are considered, we have 118
different tax rate changes (theoretically there are 64*2=128).
The second situation is that there will be a reassessment of all properties in
1997, so any phasing system is built on shifting sand. As well, new
assessments are being added and some assessments are being removed, so
both individual accounts and total tax base for any given service is
changing. Both individual account assessments and total tax base is also
changing, for the areas within the former municipal unit boundaries.
The net result is that no guarantee of maximum increase or minimum
decrease could be given on individual accounts, although it is possible to
put a maximum or minimum effect on typical situations.
Council had already been briefed by the Assessment Division to expect a
significant reassessment affecting the 1997-98 tax roll.
Also, although Council has authority to set tax rates in the current fiscal
year, and in so doing begin a phasing system, it cannot bind future Councils
or even the same Council in the following year. Further downloading of
services from senior government, unforeseen crises and changes in
legislative authority or assessment base are some of the issues that could
lead a future council to depart from the phasing scheme.
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Considering the 118 different tax change circumstances to deal with, that
assessments are added and subtracted from the rolls and that reassessment
of properties will now take place every year rather than every three years,
the phasing could be overwhelmed by other changes. The reassessment for
next year is based on 1996 values which changes from the current values,
set on the 1988 market.
If the phasing system were based simply on Section 93 (8) (b) or ( c), it
would simply phase rates and commercial/residential ratios in former
units. This is not a service based approach and any system based on
phasing an approach on the former municipal boundaries will not move
taxation towards reflecting services received. This would cause more
confusion, particularly when combined with annual reassessment and
significant changes in the total residential roll in 1997-98.
PAC did recommend a phased approach over four years. Council accepted
the four year phasing in setting the rates on September 3, 1996.
Under the four year phasing, the budget is apportioned between the two
taxation systems in scheduled lumps over the phasing period until the
system is 100% service based. Phasing is achieved over 4 years by
applying the old system to 3/4 of the assessed value and 1/4 to the new
system In 1996-97. In 1997-98, 1/2 would be based on the new system
and 1/2 on the old system; in1998-99, 3/4 would be based on the new
system and 1/4 on the old system and in the 1999-2000, 100% would be on
the new system. These rates are shown in Section 10 for full service
properties in the City and Towns and for all service levels in the former
County. The forecast for subsequent years is an illustration of the general
impact; but these are not the rates which will apply, because reassessment
will affect both the rates and the individual tax bills in each subsequent
year.
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9. Summary of Information from 1996 Assessment Roll and
PID-AAN Match Project
Total
Total
Taxable
Accounts
752
Value of
information as of June
Tax Accounts
Matched
748
Accounts
Value of
Accounts
Matched
1996 Assessment Roll from DMA
* Taxable Taxable
Res. Rate Com. Rate
New Waterford
* *Business
* Commercial
Assessed Value Assessed Value
Taxable Accnts.
1996-97
Loss
Reductions
Residential
1
ents
Reductions
Commercial
1
1996-97 Assessment
Loss
Residential Commercial
1 1
and are included in commercial taxable.
forest land is included in Resource under in residential taxable
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10. Assessment Data from the PID-AAN Match
numbers reflect the 1996-97 1996 and the estimated
& Sewer numbers include an 16.82% administrative for overhead.
Fire Service
Rural *
Rural *
Residential
Commercial Resource
Blended Rate - Residential Assessment
Mines
has been deducted from
amount in the blended rural
losses.
and added to the
Rate
0.088
0.105
0.228
0.260
0.260
0.245
0.246
0.172
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11. 1996 Rates: Service Based Taxation phased over years
Service Based Structure Urban I 5 u b urban I Ru ral A roach
Tax rement
Amount
fro m tax
Area Rate
Area Rate
NIL
Sewer
NIL
Total
Net Amount to be raised:
Transit is area rated on residential
urban are where the rate is 9.2 cents residential & commercial
Service Based Structure Urban
Rural
rate as % of Commercial:
New Comm.
New Res.
95-6 Comm.
Res
5.05 2.31
with all services
18
Cape Breton Regional Municipality
19
A Service Based Tax System for the Cape Breton Regional Municipality
From: To:
Area Rate where applicable Fire Service $0.000 Variable 0.10 0.26
Area Rate where applicable Hydrants $0.164 $0.164
Area Rate where applicable Transit $0.000 $0.133
Total $4.08 $1.80 plus fire rate on residential
Dominion Service New Comm. New Res. 95-6 Comm. 95-6 Res.
Sewer. Fire. Transit & Hydrants $4.08 $2.03 $3.58 $2.04
FourYear Phase In:
1996-97 1997 -98 1998-99 1999-2000
Residential $2.037 $2.03 $2.03 $2.03
Commercial $3.705 $3.83 $3.96 $4.08
Glace Bay New Comm. New Res. 95-6 Comm. 95-6 Res.
Sewer. Fire. Transit & Hydrants $4.08 $2.06 $4.62 $2.36
F our Year Phase In:
1996-97 1997-98 1998-99 1999-2000
Residential $2.285 $2.21 $2.14 $2.06
Commercial $4.485 $4.35 $4.22 $4.08
Louisbou rg New Comm. New Res. 95-6 Comm. 95-6 Res.
Sewer, Fire & Hydrants $4.08 $1.93 $3.73 $2.05
FourYear Phase In:
!:! 1997 -98 1998-99 1999-2000
Residential $2.020 $1.99 $1.96 $1.93
Commercial $3.818 $3.91 $3.99 $4.08
New Waterford New Comm. New Res. 95-6 Comm. 95-6 Res.
$4.08 $2.05 $4.13 $2.06
F our Year Phase In:
1996-97 1997-98 1998-99 1999-2000
Residential $2.057 $2.05 $2.05 $2.05
Commercial $4.118 $4.11 $4.09 $4.08
North Sydney New Comm. New Res. 95-6 Comm. 95-6 Res.
Sewer. Fire. Transit & Hydrants $4.08 $2.05 $3.87 $2.03
FourYear Phase In:
1996-97 1997 -98 1998-99 1999-2000
Residential $2.034 $2.04 $2.04 $2.05
Commercial $3.923 $3.98 $4.03 $4.08
New Comm. New Res. 95-6 Comm. 95-6 Res.
Sydney Mines Sewer. Fire. Transit & Hydrants $4.08 $1.97 $4.34 $2.31
F our Year Phase In:
1996-97 1997-98 1998-99 1999-2000
Residential $2.226 $2.14 $2.06 $1.97
Commercial $4.275 $4.21 $4.15 $4.08
Suburban
35%
Suburban
Transit, Fire Service & Fire Hydrants are area rated.
35% ofthe Commercial Rate
New Comm. New Res.
Rural
35%
Service Based Structure Urban
~esidential rate as%ofCommercial: 35%
Includes all sewered outside Sydney.
Residential Rate:
Cape Breton Regional Municipality
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A Service Based Tax System for the Cape Breton Regional Municipality
Service Based Structure Urban Suburban Rural
~esidential rate as%ofCommercial: 35% 35% 35%
Suburban (continued) - Former County
ewer Fire Transit & H drants
.g. Grand Lake Road, Alexandra Street inside Bypass, Reserve, New Victoria & Scotchtown.
New Comm. New Res. 95-6 Comm. 95-6 Res.
$4.08 $1.91 $3.46 $1.30
FourYear Phase In:
1996-97 1997 -98 1998-99 1999-2000
Residential $1.452 $1.60 $1.76 $1.91
Commercial $3.615 $3.77 $3.93 $4.08
.g. Oland Heights, Tower Rd, Donkin, Morien, parts of Bras D'Or, Florence, Coxheath, Westmount
New Comm. New Res. 95-6 Comm. 95-6 Res.
$4.08 $1.77 $3.46 $1.30
F our Year Phase In:
1996-97 1997 -98 1998-99 1999-2000
Residential $1.418 $1.54 $1.65 $1.77
Commercial $3.615 $3.77 $3.93 $4.08
ewer Transit & Fire e.g. part of Sydney River & Tanglewood
New Comm. New Res. 95-6 Comm. 95-6 Res.
$3.92 $1.74 $3.46 $1.30
FourYear Phase In:
1996-97 1997 -98 1998-99 1999-2000
Residential $1.411 $1.52 $1.63 $1.74
Commercial $3.574 $3.69 $3.80 $3.92
ewer & Fire e.g. Carmichael Drive * New Comm. New Res. 95-6 Comm. 95-6 Res.
$3.92 $1.61 $3.46 $1.30
F our Year Phase In:
1996-97 1997-98 1998-99 1999-2000
Residential $1.377 $1.45 $1.53 $1.61
Commercial $3.574 $3.69 $3.80 $3.92
Cape Breton Regional Municipality 21
A Service Based Tax System for the Cape Breton Regional Municipality
Service Based Structure Urban Suburban Rural
~esidential rate as%ofCommercial: 35% 35% 35%
Rural - Former County
Includes all areas without sewer. Transit, Fire Service & Fire Hydrants are area rated.
Residential Rate: 35% ofthe Commercial Rate
New Comm. New Res. 95-6 Comm. 95-6 Res.
Rural Base Rate $3.711 $1.299 $3.46 $1.30
Blended Ru ral Fire Rate $0.105
Area Rate where applicable Transit $0.133
Area Rate where applicable Hvdrants $0.164 $0.164
Total $3.88 $1.70 includes all service
Representative Rates in the Former County
Fire. Transit & Hvdrants e.g. Upper North Sydney-5eaview Dr.
New Comm. New Res.
$3.88 $1.70
FourYear Phase In:
1997 -98 1998-99
$1.50 $1.60
$3.67 $3.77
e.g., Alder Point, Mill Creek, Birch Grove
New Comm.
$3.88
F our Year Phase In:
1997 -98 1998-99
$1.43 $1.50
$3.67 $3.77
e.g. Keltic Drive, Gardiner Mines, Kytes Hill Subdivision
New Comm.
$3.71
FourYear Phase In:
1997 -98 1998-99
$1.42 $1.48
$3.59 $3.65
Unserviced areas - Irish Vale, Big Pond, BenEoin, East Bay, Boisdale, Barrachois, South Bar
Albert Bridge, Marion Bridge, Main aDieu, Gabarus, Victoria Bridge, Shenacadie, Grand Narrows
New Comm. New Res. 95-6 Comm. 95-6 Res.
$3.71 $1.40 $3.46 $1.30
F our Year Phase In:
1997 -98 1998-99
$1.35 $1.38
$3.59 $3.65
Residential
Commercial
1996-97
$1 .400
$3.564
Hvdrants & Fire
Residential
Commercial
1996-97
$1 .367
$3.564
Transit & Fire
Residential
Commercial
1996-97
$1.359
$3.523
Rural Fire Onlv
Residential
Commercial
1996-97
$1 .326
$3.523
95-6 Comm. 95-6 Res.
$3.46 $1.30
1999-2000
$1.70
$3.88
New Res.
$1.57
95-6 Comm.
$3.46
95-6 Res.
$1.30
1999-2000
$1.57
$3.88
New Res.
$1.54
95-6 Comm.
$3.46
95-6 Res.
$1.30
1999-2000
$1.54
$3.71
1999-2000
$1 .40
$3.71
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A Service Based Tax System for the Cape Breton Regional Municipality
12. Summary
1. The service based tax structure described above and
detailed in Section 11 was approved August 16, 1996 by
Council.
2. On September 3, 1996, Council approved phasing over a
four year period commencing in 1996-97 .
3. Phasing is being achieved by prorating the old rates and
boundaries on the assessment base with the new service
based system over the phasing period.
4. All previous frontage and area rates were eliminated
effective April 1, 1996.
Cape Breton Regional Municipality
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