Vacant and excess commercial and industrial land tax rate changes

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Industrial park

The City of Peterborough is consulting with the community on whether it should eliminate the discount that's currently given to vacant and excess commercial and industrial land.

Currently, commercial land assessed as vacant or excess gets a 30% tax rate discount and industrial land assessed as vacant or excess gets a 35% tax rate discount. Tax rate discounts aren't provided to owners of vacant or excess residential or multi-residential properties - it's only given to commercial and industrial properties.

The Province of Ontario has already phased out its education property tax rate discount for vacant or excess commercial and residential properties. It's only the municipal component of the property tax rate that's currently discounted for these properties. Eliminating the municipal tax rate reduction for these properties would bring the municipal rate in line with the Province's education rate.

We're reaching out to residents and businesses to consult on this potential change to the tax rates. Community input will be considered as part of the development of recommendations that would be presented in a report to City Council.

There are currently 189 properties in Peterborough with a vacant or excess land tax class. The tax rate discount for vacant and excess commercial and industrial properties is expected to have a total value of $245,000 in 2021.

Provincial amendments to the Municipal Act, outlined in Bill 70, allow municipalities to make changes to their commercial and industrial vacant and excess land subclass discount program. Municipalities can reduce or eliminate the reduction.

Beyond the tax rate reduction for vacant and excess commercial and industrial properties, since 2008 the City has been gradually reducing the tax ratio for commercial and industrial properties to get the ratios down to 1.5 times the residential tax rate - a level that was achieved for commercial properties in 2020 and is expected to be reached for industrial properties in 2021.

The City of Peterborough is consulting with the community on whether it should eliminate the discount that's currently given to vacant and excess commercial and industrial land.

Currently, commercial land assessed as vacant or excess gets a 30% tax rate discount and industrial land assessed as vacant or excess gets a 35% tax rate discount. Tax rate discounts aren't provided to owners of vacant or excess residential or multi-residential properties - it's only given to commercial and industrial properties.

The Province of Ontario has already phased out its education property tax rate discount for vacant or excess commercial and residential properties. It's only the municipal component of the property tax rate that's currently discounted for these properties. Eliminating the municipal tax rate reduction for these properties would bring the municipal rate in line with the Province's education rate.

We're reaching out to residents and businesses to consult on this potential change to the tax rates. Community input will be considered as part of the development of recommendations that would be presented in a report to City Council.

There are currently 189 properties in Peterborough with a vacant or excess land tax class. The tax rate discount for vacant and excess commercial and industrial properties is expected to have a total value of $245,000 in 2021.

Provincial amendments to the Municipal Act, outlined in Bill 70, allow municipalities to make changes to their commercial and industrial vacant and excess land subclass discount program. Municipalities can reduce or eliminate the reduction.

Beyond the tax rate reduction for vacant and excess commercial and industrial properties, since 2008 the City has been gradually reducing the tax ratio for commercial and industrial properties to get the ratios down to 1.5 times the residential tax rate - a level that was achieved for commercial properties in 2020 and is expected to be reached for industrial properties in 2021.