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Vancouver City Council |
ADMINISTRATIVE REPORT
Dated: May 04, 2003
Author / Local: Ken Bayne/7223
RTS No: 03206
CC File No: 1552/113
Meeting Date: May 13, 2003TO Vancouver City Council
FROM: General Manager of Corporate Services/Director of Finance
SUBJECT: Adoption of 2003 Rating Bylaws and Averaging Resolutions
RECOMMENDATIONS
A. THAT Council approve the 2003 Rating Bylaw establishing the City's general purposes property tax rates.
B. THAT Council approve the 2003 Rating Bylaw for the property tax requisition of the Greater Vancouver Regional District.
C. THAT Council approve the resolutions attached as Appendices B through E, adopting adjusted tax rates for the Provincial Schools, the B.C. Assessment Authority, the Municipal Finance Authority and the Greater Vancouver Transportation Authority levies, pursuant to the Vancouver Charter and the Averaging Bylaw No. 8658 adopted by Council on March 28, 2003.
COUNCIL POLICY
The Vancouver Charter requires that Council adopt the final operating budget as submitted by the Director of Finance as a formal resolution. That approval was given by Council on April 22, 2003.
The Vancouver Charter also requires that Council adopt an annual rating bylaw establishing general purposes property tax rates for each class of property in the City and the amount to be raised as the City's general purposes levy for the year.
Legislation governing the Greater Vancouver Regional District requires that Council approve a rating bylaw establishing the tax rate for each class of property in the City to raise the requisition of the district in the current tax year.
On March 27, 2003, Council approved the averaging of taxable land values for Class 1 (Residential) and Class 6 (Business and Other) properties for the 2003 tax year. Under the authority of the Vancouver Charter, Council must extend averaging to the calculation of taxes levied by other taxing authorities through resolutions which alter the tax rates of those authorities to make the impact of land value averaging revenue neutral. This is done by approving a resolution to vary the applicable tax rates established by those taxing authorities.
PURPOSE
The purpose of this report is to:
· summarize the property tax levies of the various organizations that tax property in the City; and
· recommend adoption of the City's annual rating bylaw, adoption of a rating bylaw for the Greater Vancouver Regional District and a series of resolutions to give effect to the assessment averaging program approved by Council on March 27, 2003.Appendix A provides an overall summary of the tax rates and tax levies of these taxing authorities.
BACKGROUND
On March 27, 2003, through passage of Bylaw 8658, Council approved a program of averaging the assessed value of land for Class 1 (Residential) and Class 6 (Business and Other) over three years for the purpose of calculating 2003 property taxes.
On April 22, 2003, Council approved a resolution adopting the revenue and expenditure estimates of the City for the 2003 budget year. This budget, totalling $698,967,500, provides for all of the revenues and expenditures of the City for 2003 and is based on a general purposes tax increase of 4.67%.
On April 24, 2003, Council approved a redistribution of the general purposes property tax levy by shifting one half of one percent of the property tax levy from the non-residential property classes to the residential property classes.
2003 GENERAL PURPOSE TAX LEVY
To balance the 2003 Operating Budget approved by Council, the general purposes tax levy is set at $414,863,300. The tax rates necessary to raise this amount, incorporating the 2003 Land Assessment Averaging Program and the approved shift of the property tax burden, are shown below.
Property Class
2003 Tax Rates
(per $1000 of value)Residential
(1)
3.17221
Utilities
(2)
32.45092
Major Industry
(4)
27.71701
Light Industry
(5)
16.09242
Business and Other
(6)
16.36674
Recreational Property/
Non-profit Organization
(8)
3.04732
Farm
(9)
3.04732
Before Council this day is a bylaw, 2003 Rating Bylaw: General Purposes Taxes that will give effect to these tax rates.
OTHER TAXING AUTHORITIES
The following summarizes the property tax levies of the other taxing authorities whose levies appear on the City's tax bill.
1. Provincial School Levy
The Provincial Government levies all school taxes in the province. The tax rates submitted by the Surveyor of Taxes generate the following 2003 tax levy, with 2002 comparisons:
Class
Tax Rate
2003 Levy
2002 Levy
Residential
2.91461
$163,238,055
$157,423,440
Utilities
15.0000
6,930,539
7,029,637
Light Industry
12.5000
2,192,945
2,252,449
Heavy Industry
9.90000
2,696,176
2,648,585
Business
10.16992
136,854,240
135,141,656
Seasonal /Recreational
4.50000
478,678
468,413
Farm
6.80000
279
269
Total
$312,390,912
$304,964,449
Increase
2.4%
2. Greater Vancouver Regional District (GVRD) Requisition
The GVRD requisition to the City is $9,837,518 representing an increase of $203,800 or 2.1% from the 2002 level. A bylaw establishing tax rates for this levy is before Council this day.
3. Municipal Finance Authority Levy
The Municipal Finance Authority has set tax rates that generate a tax levy of $19,200, an increase of $200 or 1.0% from the 2002 level.
4. BC Assessment Authority Levy
The BC Assessment Authority has set tax rates that generate a tax levy of $11,600,300, a decrease of $171,900 or 1.5% from the 2002 level.
5. Greater Vancouver Transportation Authority (TransLink) Levy
The Greater Vancouver Transportation Authority has set tax rates that generate a property tax levy of $41,438,200, an increase of $4,742,200 or 12.9% from the 2002 level.
AVERAGING RESOLUTIONS
Approval of the land assessment averaging program in 2003 requires that the tax rates submitted by these other taxing authorities for Class 1 (Residential) and Class 6 (Business and Other) be varied. Council approval of the attached resolutions (Appendices B to E) will complete this requirement.
CONCLUSION
Approval of the averaging resolutions and rating bylaws submitted to Council this day will complete the process of developing property tax rates and will allow the billing to proceed. Taxpayers can expect tax bills to arrive during the first week of June. Property taxes are due by Thursday July 3, 2003. Taxpayers have several options for paying their tax bill:
_ At any chartered bank and several trust companies and credit unions
_ Through electronic banking arrangements
_ By dropping a cheque in the City Hall mail slot or drop box
_ In person at City Hall during regular business hours
_ By post mail.- - - - -
APPENDIX B
RESOLUTION
MOVED BY COUNCILLOR:
SECONDED BY COUNCILLOR:
THAT WHEREAS pursuant to Section 119(3) of the School Act, the Surveyor of Taxes for the Province of British Columbia in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver;
AND WHEREAS on April 10, 2003 by Orders-in-Council No. 0403 and No. 0404, the Lieutenant-Governor in Council levied the following tax rates on Class 1 - Residential and Class 6 - business and other:
Class 1 - residential 2.7999
Class 6 - business and other 9.9000
being dollars of tax for each one thousand dollars of taxable value, for the 2003 taxation year, which when applied to the net taxable value of all land and improvements in the respective Classes in the City of Vancouver would raise the following sums:
Class 1 - residential $ 163,238,055
Class 6 - business and other $ 136,854,240
AND WHEREAS on March 28, 2003, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 - residential and Class 6 - business and other, within the City of Vancouver;
AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2003, of land in the above-noted Classes subject to taxation under the School Act for the year 2003 are as follows:
Net Taxable Value Adjusted Taxable Value
Class 1 - residential $ 58,301,387,533 $ 56,006,849,930
Class 6 - business & other 13,823,660,648 13,590,400,267
AND WHEREAS Council is obliged to vary the rate set by the Lieutenant-Governor in Council in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;
NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential, the rate of 2.91461 is hereby substituted for the rate of 2.7999; and in the case of Class 6 - business and other, the rate of 10.06992 is substituted for the rate of 9.9000 for taxation pursuant to the School Act within the City of Vancouver for the 2003 taxation year.
APPENDIX C
RESOLUTION
MOVED BY COUNCILLOR:
SECONDED BY COUNCILLOR:
THAT WHEREAS pursuant to Section 17(2) of the Assessment Authority Act, the British Columbia Assessment Authority in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver (excluding property that is taxable for school purposes only by special act);
AND WHEREAS on April 04, 2003, the Authority, levied the following tax rates on Class 1 - residential and Class 6 - business and other:
Class 1 - residential 0.1159
Class 6 - business and other 0.3245
being dollars of tax for each one thousand dollars of taxable value, for the 2003 taxation year, which when applied to the net taxable value of all land and improvements in the respective Classes in the City of Vancouver (excluding property taxable for school purposes only by special act) would raise the following sums:
Class 1 - residential $ 6,757,077
Class 6 - business and other $ 4,467,874
AND WHEREAS on March 28, 2003, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 - residential and Class 6 - business and other, within the City of Vancouver;
AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2003, of land in the above-noted Classes subject to taxation under the British Columbia Assessment Authority Act for the year 2003 are as follows:
Net Taxable Value Adjusted Taxable Value
Class 1 - residential $ 58,300,919,833 $ 56,006,382,230
Class 6 - business & other 13,768,486,148 13,537,707,768
AND WHEREAS Council is obliged to vary the rate set by the British Columbia Assessment Authority in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;
NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential, the rate of 0.12065 is hereby substituted for the rate of 0.11590; and in the case of Class 6 - business and other, the rate of 0.33003 is substituted for the rate of 0.32450 for taxation pursuant to the Assessment Authority within the City of Vancouver for the 2003 taxation year.
APPENDIX D
RESOLUTION
MOVED BY COUNCILLOR:
SECONDED BY COUNCILLOR:
THAT WHEREAS pursuant to Section 17 and 18 of the Municipal Finance Authority Act, the Municipal Finance Authority of BC in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver (excluding property that is taxable for school purposes only by special act);
AND WHEREAS on March 27, 2003, the Authority, with the approval of the Lieutenant-Governor in Council, levied the following tax rates on Class 1 - residential and Class 6 - business and other:
Class 1 - residential 0.00030
Class 6 - business and other 0.00010
being dollars of tax for each one thousand dollars of taxable value, for the 2003 taxation year, which when applied to the net taxable value of all land and improvements in the respective Classes in the City of Vancouver (excluding property taxable for school purposes only by special act) would raise the following sums:
Class 1 - residential $ 17,490
Class 6 - business and other $ 1,377
AND WHEREAS on March 28, 2003, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 - residential and Class 6 - business and other, within the City of Vancouver;
AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2003, of land in the above-noted Classes subject to taxation under the Municipal Finance Authority Act for the year 2003 are as follows:
Net Taxable Value Adjusted Taxable Value
Class 1 - residential $ 58,300,919,833 $ 56,006,382,230
Class 6 - business & other 13,768,486,148 13,537,707,768
AND WHEREAS Council is obliged to vary the rate set by the Municipal Finance Authority in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;
NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential, the rate of 0.00031 is hereby substituted for the rate of 0.00030; and in the case of Class 6 - business and other, the rate of 0.00010 is substituted for the rate of 0.00010 for taxation pursuant to the Municipal Finance Authority Act within the City of Vancouver for the 2003 taxation year.
APPENDIX E
RESOLUTION
MOVED BY COUNCILLOR:
SECONDED BY COUNCILLOR:
THAT WHEREAS pursuant to Section 25(9) of the Greater Vancouver Transportation Act, the Greater Vancouver Transportation Authority in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver (excluding property that is taxable for school purposes only by special act);
AND WHEREAS, on March 05, 2003, the Authority levied the following tax rates on Class 1 - residential and Class 6 - business and other:
Class 1 - residential 0.28740
Class 6 - business and other 1.66570
being dollars of tax for each one thousand dollars of taxable value, for the 2003 taxation year, which when applied to the net taxable value of all land and improvements in the respective classes in the City of Vancouver (excluding property taxable for school purposes only by special act) would raise the following sums:
Class 1 - residential $ 16,755,684
Class 6 - business and other $ 22,934,167
AND WHEREAS on March 28, 2003, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 - residential and Class 6 - business and other, within the City of Vancouver;
AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2003, of land in the above-noted Classes subject to taxation under the Greater Vancouver Transportation Act for the year 2003 are as follows:
Net Taxable Value Adjusted Taxable Value
Class 1 - residential $ 58,300,919,833 $ 56,006,382,230
Class 6 - business & other 13,768,486,148 13,537,707,768
AND WHEREAS Council is obliged to vary the rate set by the Greater Vancouver Transportation Authority in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;
NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential, the rate of 0.29917 is hereby substituted for the rate of 0.28740; and in the case of Class 6 - business and other, the rate of 1.69410 is substituted for the rate of 1.66570 for taxation pursuant to the Greater Vancouver Transportation Act within the City of Vancouver for the 2003 taxation year.
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