ADMINISTRATIVE REPORT

Date: May 13, 1999

Author / Local: Ken Bayne / 7223

RTS No: 626
CC File No: 113

Council: May 18, 1999

TO Vancouver City Council

FROM: Director of Finance

SUBJECT: Adoption of Rating Bylaws and Averaging Resolutions

RECOMMENDATION

A. THAT Council approve the 1999 Rating Bylaw establishing the City’s general purpose property tax rates.

B. THAT Council approve the 1999 Rating Bylaw for the property tax requisition of the Greater Vancouver Regional District.

C. THAT Council approve the resolutions attached as Appendices A through D, 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. 7998 adopted by Council on March 30, 1999.

GENERAL MANAGER’S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A, B and C.

COUNCIL POLICY

The Vancouver Charter requires that Council adopt the revenue and expenditure estimates of the City as submitted by the Director of Finance by April 30 each year. That approval was given by Council on April 29, 1999 in adopting the budget resolution.
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 purpose 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 30, 1999, Council approved the averaging of taxable values for residential (Class 1) and commercial (Class 6) properties for the 1999 tax year. Under 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 their tax rates revenue neutral. This is done by approving a resolution to vary the applicable tax rates established by those taxing authorities.

PURPOSE

This report recommends adoption of the City’s annual rating bylaw, adoption of a rating bylaw for the Greater Vancouver Regional District requistion and adoption of a series of resolutions to give effect to the assessment averaging program approved by Council on March 30, 1999.

BACKGROUND

On March 30, 1999, through passage of Bylaw 7998, Council approved a program of averaging the assessed value of land for Class 1, Residential, and Class 6, Commercial and Other, over three years for the purpose of calculating 1999 property taxes.

On April 29, 1999, Council approved a resolution adopting the revenue and expenditure estimates of the City for the 1999 budget year. This budget, totalling $565,621,900, provides for all of the revenues and expenditures of the City for 1999 and is based on a general purposes tax increase of 3.4%.

1999 GENERAL PURPOSES TAX LEVY

To balance the 1999 Operating Budget approved by Council, the general purposes tax levy is set at $366,596,500. The tax rates necessary to raise this amount, incorporating the 1999

Land Assessment Averaging Program, are shown below:

Class 1999 Tax Rates

per $1000 of value

Residential (1) 2.88336
Utilities (2) 30.82717
Major Industry (4) 30.72090
Light Industry (5) 28.80943
Business and Other (6) 14.89519
Recreational Property/
Non-profit Organization (8) 3.03104
Farm (9) 3.03104

Before Council this day is a bylaw, 1999 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. A summary of tax rates and tax levies for all taxing authorities is attached as Appendix E.

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 1999 tax levy, with 1998 comparisons:

Class	1999 Levy		1998 Levy
Residential	$147,761,882		$147,920,396
Utilities	$6,971,311		$7,027,142
Light Industry	$1,924,557		$2,215,361
Heavy Industry	$1,106,075		$994,765
Commercial	$131,683,554		$131,891,981
Seasonal /Recreational	$385,869		$380,495
Farm	$257		$258
Total	$289,833,505		$290,430,398

2. Greater Vancouver Regional District

The GVRD has approved a requisition totaling $29.8 million for 1999, an increase of 1% over 1998. The share of this requisition being passed on to City of Vancouver taxpayers is $9,829,490, representing a reduction of $116,600 or 1.1% from the 1998 level. A bylaw establishing tax rates for this levy is before Council this day.

3. BC Assessment Authority

The BC Assessment Authority has set tax rates that generate a tax levy to Vancouver taxpayers of $11,484,200, and reduction of $166,000 or 1.5% from the 1998 level.

4. Municipal Finance Authority

The Municipal Finance Authority levy totals $18,600 in Vancouver, a marginal reduction from the 1998 level of $19,300.

5. Greater Vancouver Transportation Authority (TransLink)

The reorganization of transit and other transportation activities in the region under the Greater Vancouver Transportation Authority has resulted in some changes in property taxation in 1999. The GVTA has taxing authority in its own right and has become responsible for the levy formerly collected the BC Transit. In addition, the province has assumed full responsibility for the costs of hospital construction meaning that there will be no levy from the Greater Vancouver Regional Hospital District in 1999. The “tax room” has been transferred to GVTA.

GVTA has submitted tax rates that translate to a levy of $31,450,186 within the City of Vancouver. This compares with the $31,130,200 billed by BC Transit and the Greater Vancouver Regional Hospital District in 1998.

AVERAGING RESOLUTIONS

Approval of the land assessment averaging program in 1999 requires that the tax rates submitted by these other taxing authorities for Class 1, Residential and Class 6, Commercial and Other, be varied. Council approval of the attached resolutions (Appendices A to D) 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 their tax bill to arrive during the first week of June. Property taxes are due by Monday July 5, 1999. Taxpayers have several options for paying their tax bill:

… at any chartered bank and several trust companies and credit unions
… through electronic banking arrangements with most major financial institutions
… by dropping a cheque in the City Hall mail slot (12^th Avenue entrance)
… in person at City Hall during regular business hours (Monday to Friday, 9 am to 5 pm).

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Appendix A

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to 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 30, 1999, the Lieutenant-Governor in Council levied the following tax rates on Class 1 - Residential and Class 6 - business and other:

Class 1 - residential 2.8910
Class 6 - business and other9.9000

being dollars of tax for each one thousand dollars of taxable value, for the 1999 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 $ 147,761,861
Class 6 - business and other $ 131,683,554

AND WHEREAS on March 30, 1999, 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 30, 1999, of land in the above-noted Classes subject to taxation under the School Act for the year 1999 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,110,986,118 $ 53,729,639,117
Class 6 - business & other 13,301,369,096 13,316,555,927

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 2.75010 is hereby substituted for the rate of 2.8910; and in the case of Class 6 -business and other, the rate of 9.88871 is substituted for the rate of 9.9000 for taxation pursuant to the School Act within the City of Vancouver for the 1999 taxation year.

Appendix B

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the British Columbia 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 February 27, 1999, 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 0.1247
Class 6 - business and other 0.3604

being dollars of tax for each one thousand dollars of taxable value, for the 1999 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 $ 6,373,477
Class 6 - business and other $ 4,773,864

AND WHEREAS on March 30, 1999, 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 30, 1999, of land in the above-noted Classes subject to taxation under the British Columbia Assessment Authority Act for the year 1999 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,110,480,518 $ 53,729,133,517
Class 6 - business & other 13,246,016,096 13,261,206,727

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 0.11862 is hereby substituted for the rate of 0.12470; and in the case of Class 6 -business and other, the rate of 0.35999 is substituted for the rate of 0.3604 for taxation pursuant to the British Columbia Assessment Authority within the City of Vancouver for the 1999 taxation year.

Appendix C

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the Municipal Finance Authority Act, the BritishColumbia 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 March 11, 1999, 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 0.0003
Class 6 - business and other 0.0002

being dollars of tax for each one thousand dollars of taxable value, for the 1999 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 $ 15,333
Class 6 - business and other $ 2,649

AND WHEREAS on March 30, 1999, 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 30, 1999, of land in the above-noted Classes subject to taxation under the Municipal Finance Authority Act for the year 1999 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,110,480,518 $ 53,729,133,517
Class 6 - business & other 13,246,016,096 13,261,206,727

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 0.00029 is hereby substituted for the rate of 0.00030; and in the case of Class 6 -business and other, the rate of 0.00020 is substituted for the rate of 0.00020 for taxation pursuant to the Municipal Finance Authority Act within the City of Vancouver for the 1999 taxation year.

Appendix D

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the Greater Vancouver Transportation Act, Section 29 (9), 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, the Authority has levied the following tax rates on Class 1 -residential and Class 6 - business and other:

Class 1 - residential 0.2097
Class 6 - business and other 1.4763

being dollars of tax for each one thousand dollars of taxable value, for the 1999 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 $ 10,717,868
Class 6 - business and other $ 19,555,094

AND WHEREAS on March 30, 1999, 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 30, 1999, of land in the above-noted Classes subject to taxation under the Greater Vancouver Transportation Act for the year 1999 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,110,480,518 $ 53,729,133,517
Class 6 - business & other 13,246,016,096 13,261,206,727

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 thenet 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 0.19948 is hereby substituted for the rate of 0.20970; and in the case of Class 6 -business and other, the rate of 1.47461 is substituted for the rate of 1.47630 for taxation pursuant to the Greater Vancouver Transportation Act within the City of Vancouver for the 1999 taxation year.

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(c) 1998 City of Vancouver