Although the City of Greater Sudbury’s 2022 budget deliberations capped last week with a 3.1-per-cent increase to the tax levy, the actual impacts on property owners is not yet determined.
This will come sometime in April or May, when the city establishes its 2022 property tax policy.
“The budget determines the size of the pie,” said Ward 7 Coun. Mike Jakubo, who also chairs the city’s finance and administration committee. “Tax policy determines which property types pay what size of slice of that pie.”
The city’s 2021 property tax policy remained largely unchanged from the previous year, and Jakubo said it’s expected to remain as such into 2022.
“Tax policy each year tries to keep the ratios as similar as possible to relay a consistent amount of taxes and tax increases proportionately across the different property tax classes,” he said.
Tax ratios for this year generally show that residential properties pay a tax rate at 1:1 ratio compared to commercial properties, which pay closer to 2:1, and industrial and large industrial classes, which pay closer to 4:1.
“The difference in rates reflects the heavier impact of commercial and industrial properties on city services,” Jakubo said. “Roads are a prime example as commercial vehicles take a much harder toll on our roads and as such commercial and industrial property classes pay more relative taxes than a residential property.”
Municipal Property Assessment Corporation reassessments can impact tax policy, but that isn’t expected to be a factor in 2022.
Last year’s provincial budget saw the province postpone a property-wide assessment update due to the pandemic, and MPAC has clarified this postponement will be maintained into 2022.
“Property assessments for the 2022 property tax year will continue to be based on January 1, 2016 current values,” according to the MPAC website. “This means your property assessment remains the same as it was for the 2021 tax year, unless there have been changes to your property.”
These changes could include an addition, new construction, renovation, a structure being accessed for the first time, property classification change and part of a property no longer qualifying as tax exempt.
The impact of education taxes will also factor into the final total property owners pay. The city’s 2021 budget saw city council approve a four-per-cent tax levy increase for residential properties, but a decrease to education taxes meant residents paid a total increase closer to 3.6 per cent.
Click here for a story on the fifth and final day of 2022 budget deliberations earlier this month, here for Day 4, here for Day 3, here for Day 2 and here for Day 1.
Tyler Clarke covers city hall and political affairs for Sudbury.com.
