THUNDER BAY -- Property taxes in the city are not going up four per cent.
Despite some reports that use the terms tax levy and property tax interchangeably, city manager Tim Commisso explains how the terms have completely different meanings.
On Wednesday night city council passed its 2015 budget, which came with a 4.6 per cent increase to the municipal tax levy. That tax levy is an indication of how much the city will spend this year in its $229 million tax supported net budget.
The 2015 tax-supported net budget comes with an increase of about $8 million over last year. That money pays for roads and waste management, parks, emergency services, recreation and culture, planning and homes for the aged.
The levy is funded from taxpayers from all property classes, and not just residential homeowners.
In Thunder Bay, there are eight of those classes and they include the provincially legislated residential, multi-residential, commercial, industrial, pipeline, farm and managed forest classes along with new multi-residential and large industrial.
The city will draw from all of those properties, about 45,000, to make up for the 4.6 per cent increase.
"It's tied to how their assessment changes. All we're saying (with the tax levy) is we're getting four per cent more in revenues this year," he said.
So what does all of this mean for your tax bill, and what kind of tax hike can you face?
Expect that answer to come in May when council will set the tax rate. Last year the rate increased by about 1.8 per cent.
Multiply that number by property assessments, which is set by the Municipal Property Assessment Corporation, and a tax bill is made.
"It really is a challenge to be able to say to anybody 'here's exactly what your impact is going to be' until we get the tax rate set," Commisso said.
"Each taxpayer will be affected differently based on the change in their own assessment."
It's possible that a taxpayer’s bill could even go down, although that's not likely in Thunder Bay where assessments have been rising around seven per cent a year.
