1. Provincial Land Tax (PLT) Ministry of Finance Information Sessions August 2008

2. Ministry of FInance2 Key Information on PLT Reform  No new revenue from PLT  About ½ of properties will see tax decreases  Of those with increases, 90% up less than $150

3. Ministry of FInance3 Today’s Agenda  Opening Remarks (5 minutes)  Explain PLT reform (15 minutes)  Answer questions, receive feedback (100 minutes)

4. Ministry of FInance4 Context  PLT properties last assessed in 1940s  Antiquated assessment appeal process  No enumeration in Unincorporated Territory  Unfair apportionment of DSSAB costs  Inefficient billing practices

5. Ministry of FInance5 Assessment Reform  PLT based on Current Value Assessment (CVA)  2009  Assessment notices – Fall 2008  Reformed appeal process  Large increases in assessment do not mean large increases in taxes  Reform will not increase provincial revenues

6. Ministry of FInance6 Tax Reform  Standard property classes for PLT  Multi-residential rate = residential rate  Farm/Managed Forest = 0.25 residential rate  Interim-PLT combined with PLT in school boards  Minimum tax remains $6.00 per year  Average residential tax -- $130  Of those with tax increases, 90% up less than $150

7. Ministry of FInance7 Property ClassMaximum Tax Rate inside School Boards Maximum Tax Rate outside School Boards Residential / Multi-residential 0.00230.0004 Farmland / Managed Forest 0.00060.0001 Commercial0.0012 Industrial0.0006 Maximum PLT Rates 2009-2012 Current PLT Rate 1.5 per cent

8. Ministry of FInance8 Estimating PLT Estimated 2008 Value of Property (what is it worth?) Multi- plied by Maximum PLT Tax Rate 2009-2012 (from p. 8) Equals PLT Payable annually 2009- 2012

9. Ministry of FInance9 Examples 2008 Value X PLT Rate = PLT Payable Residential Inside School Board $54,000x0.0023=$124.20 Farm Outside School Board $54,000x0.0001=$5.40 (pay $6.00 minimum) Commercial $100,000x0.0012=$120.00 Industrial $30,000x0.0006=$18.00

10. Ministry of FInance10 Impacts of Reform  About ½ of properties will see tax decreases  About ½ of properties will see tax increases  Of those with increases, 90% up less than $150

11. Ministry of FInance11 Local Roads and Services Boards  Some LRBs / LSBs use PLT tax base  Will use CVA from 2009 on  Option to join “one-bill” system  With PLT and Education taxes  More information and tools this Fall

12. Ministry of FInance12 As further information becomes available….  Ministry of Finance Website  www.fin.gov.on.ca www.fin.gov.on.ca  Ministry of Revenue Website  www.rev.gov.on.ca www.rev.gov.on.ca  Ministry of Revenue Call Centre  1-866-668-8297

13. Ministry of FInance13 Questions? Comments?