2023 Property Tax Distribution

Motion 15 · Council Meeting, April 25, 2023

Carried

Summary

Council was asked to approve the distribution of the 2023 general purpose property tax levy, splitting it approximately 57% residential and 43% non-residential — consistent with long-standing City policy.
The total general purpose tax levy for 2023 is approximately $1.072 billion, as approved in the 2023 Operating Budget of $1.97 billion passed in February 2023.
The overall tax levy increased by $113.8 million (11.9%) compared to 2022, driven primarily by a $104.1 million approved tax increase and $10.1 million from new construction and other non-market changes.
Rising property values do not automatically increase City tax revenue; rates are adjusted each year to remain "revenue neutral" relative to assessment changes, with the tax share set by Council policy rather than market forces.
For a property valued at $1 million, the 2023 general purpose tax levy is approximately $1,631 for residential properties (Class 1) and $4,948 for business properties (Class 6), reflecting a $158 and $479 increase respectively over 2022.
The Director of Finance recommended the approach, noting recent measures such as the pilot Development Potential Relief Program and 5-year land assessment averaging for residential, light industrial, and business properties to help manage tax impacts.