Provincial land tax is a property tax on land located in the unincorporated territory of Ontario that does not have municipal representation. The tax helps to support the local share of a number of services in these areas.
Land in the unincorporated territory is now assessed using the Current Value Assessment method, which has been used in the rest of the province since 1998. Increases in assessment resulting from reassessment are phased in over a four-year period to give property owners greater stability and predictability. Assessment decreases take effect immediately.
2013 is the first year of the first four-year phase-in reassessment cycle for provincial land tax.
Who pays provincial land tax?
Owners of property located in areas of Ontario where there is no municipal government pay provincial land tax. The tax is based on the current value assessment of each property.
Each year, you may receive two tax bills: an interim tax bill in February and a final tax bill in June.
The interim tax bill, based on 50% of the previous year's taxes, is usually issued by the end of February with instalment due dates in April and May.
The final tax bill is usually issued by the end of June with instalment due dates in August and September.
One or more of the following charges will appear on your property tax bill:
- provincial land tax
- education taxes
- local roads boards tax
- local services boards charges
The minimum provincial land tax is $6 per year.
Depending on your situation, you may be able to get a rebate or deferral of provincial land tax:
- I own vacant commercial and/or industrial buildings
- I operate a registered charity
- I am a low-income senior or low-income person with disabilities
If you are a senior homeowner with low to moderate income, you may be eligible to receive financial help to pay your property taxes.
Provincial land tax rates
The tax rates are based on the property's class and whether the property is located within a school board boundary. As a result, different tax rates apply to different properties.
|Property Class||Tax Rate Inside
|Tax Rate Outside
Railway companies and power utilities pay a different tax rate too, depending on the number of acres of land that was assessed.
|Property Owned by||Type of Land/Land Use||Rate per acre|
|Railway Company||Roadway or right-of-way||$0.09|
|Prescribed Power Utility||Land as a transmission or distribution corridor||$2.05|
Calculating the tax
To calculate the provincial land tax portion of your tax bill, you will need your most recent property assessment notice from the Municipal Property Assessment Corporation.
The calculation is:
Assessed value of property (on your assessment notice) multiplied by provincial land tax rate (from the rate table above) equals the provincial land tax portion of your tax bill.
For example, if the assessed value of your residential property inside a school board boundary was $54,000, when multiplied by the 0.00161727 tax rate from the rate table above, the provincial land tax portion of your tax bill would be $87.33.
Railway companies and power utilities
The provincial land tax on certain land owned by railway companies and power utilities is based on the number of acres of the parcel of land being assessed.
To calculate the tax, you will need your most recent property assessment notice from the Municipal Property Assessment Corporation.The calculation is:
The property size in acres (on your assessment notice) multiplied by provincial land tax rate (from the rate table above) equals the provincial land tax portion of your tax bill.
When calculating the tax on land owned by a railway company, do not include:
- structures, substructures and superstructures, rails, ties, poles and other property on the roadway or right-of-way
- land leased by the railway company to another person for rent or other valuable consideration
When calculating the tax on land owned by a power utility, do not include:
- land leased by the power utility to another person for rent or other valuable consideration.
Land leased by railway companies or power utilities is assessed separately as a property class.
Property within local roads board or local services board areas
Local roads board and local services board levies continue to be paid. If a board decides to have its levies included in the one-bill system, their charges will appear as a line item on your tax bill. If a board decides not to use the one-bill system, you will continue to be billed by, and send your payment to, the local roads board and/or local services board.
Property within a school board boundary
Education taxes, which appear as a line item on your tax bill, continue to be paid.
Paying provincial land tax
You can pay your provincial land tax:
- in person at a financial institution
- in person at the provincial land tax office located at 500 Donald St. E., Thunder Bay
- through internet banking services
- through touchtone telephone banking services
- through your mortgage payment or
- by sending a cheque or money order payable to the "City of Thunder Bay" to
Provincial Land Tax
PO Box 58
Thunder Bay ON P7C 0A5
To have your mortgage company or financial institution pay your provincial land tax bill on your behalf, send them a copy of your tax bill.
If you are paying by cheque or money order, please ensure your 19 digit tax roll number is clearly identified on the cheque or money order. If it is not, your payment cannot be processed and may be subject to late payment penalty and interest charges.
A $35 fee will be charged to your account for a cheque which is non-negotiable due to non-sufficient funds.
If you make an early payment your account will be credited with the amount paid as of the receipt date of the payment. However, if the amount paid does not cover the full amount of the bill, there may be an outstanding balance on your account.
Penalty and interest
Penalties on taxes you owe
Penalties are payable on unpaid tax in the year in which the tax is due. Taxes are due on the date specified on the tax bill.
A penalty is charged on unpaid tax on the day after the tax was due. Further penalties are charged on the first day of each month for the remainder of the year, or until the property tax is paid, whichever is earlier. If tax remains unpaid at year end, the unpaid tax is subject to interest until it is paid.
The first penalty charge is calculated by multiplying the amount of property tax that is unpaid at the end of the due date by 1.25%. On the first day of each month for the remainder of the year, subsequent penalties are calculated by multiplying the amount of property tax that remains unpaid at the end of the previous month by 1.25%.
Interest on taxes you owe
Interest is not payable on unpaid tax during the year in which the tax was due.
Interest is charged on unpaid tax beginning the year following the year in which the tax was due. Interest is payable on the first day of each month, commencing January 1, until the property tax is paid. It is calculated by multiplying the amount of property tax that remains unpaid at the end of the previous month by 1.25%.
Partial payments are applied as follows:
- First, to penalties and interest in the order in which the penalties and interest became payable.
- Second, to taxes, fees and charges, in the order in which they became payable, and if they became payable at the same time, in the following order:
- Local Roads Boards taxes
- Local Services Boards charges
- Education taxes
- Taxes, fees and charges and any other amount imposed by any other Act except the Provincial Land Tax Act, 2006
- Provincial land tax
Provincial land tax reform
The 2013 Ontario Economic Outlook and Fiscal Review announced the government will consult with municipalities, taxpayers and other northern stakeholders on reforms to the provincial land tax and bring forward solutions for the 2015 tax year. While the review is underway, tax rates will be frozen for 2014 at the 2013 rates.
About your account
Contact the Provincial Land Tax Office in Thunder Bay (firstname.lastname@example.org) with questions about your provincial land tax account(s), payment(s), tax certificate(s), bill or any other general inquiry:
- Local Calls: 1 807 625-2122
- Toll Free: 1 866 400-2122
- Teletypewriter: 1 888 321-6774
About your property assessment notice
Contact the Municipal Property Assessment Corporation with questions about your property assessment at 1 866 296-6722 or 1 877 889-6722 for teletypewriter.
About the legislation
Contact the Ministry of Finance with legislative questions about the Provincial Land Tax Act, 2006 at 1 866 ONT-TAXS (1 866 668-8297) or 1 800 263-7776 for teletypewriter.