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Treasurer clarifes tax reduction - Lorella Hayes

I would like to thank associate editor Tracey Duguay for her positive coverage March 31 regarding council's decision to allocate additional provincial transfer payments to a tax reduction and to future road construction projects.

I would like to thank associate editor Tracey Duguay for her positive coverage March 31 regarding council's decision to allocate additional provincial transfer payments to a tax reduction and to future road construction projects. I would, however, like to clarify the impact on property taxes.

When council's reduction of the municipal tax rate is combined with a reduction in the residential education tax rate, the end result is a 2.8 percent property tax increase.

Here is an explanation of how this is possible. Council made a decision to allocate close to $1.5 million in provincial transfer payments to reduce the municipal tax rate by one percent-down to a 4.2 percent increase.

At the same time, the Municipal Property Assessment Corporation has undertaken a province-wide reassessment for the 2006 tax year. Under this reassessment, the City of Greater Sudbury's property valuation change is less than the provincial average. As a result, the city's share of the provincial residential education tax levy has been reduced.

Hence, reducing the overall property tax increase to 2.8 percent.

The City of Greater Sudbury recognizes the impact of the recent provincial reassessment on individual properties. In some cases, ratepayers will experience a tax increase greater than the 2.8 percent if the valuation change from 2005 to 2006 on the property was greater than the municipal average. On the other hand, for properties that experienced a valuation change less than the municipal average, the property tax increase would be less than 2.8 percent, and maybe less than their 2005 taxes.

We hope this clarifies council's recent decision for readers.

Lorella Hayes
Chief Financial Officer
City Treasurer, City of Greater Sudbury




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