Consultations: Provincial Land Tax

November 2017 Update

The 2017 Ontario Economic Outlook and Fiscal Review announced changes related to the final phase of Provincial Land Tax (PLT) reform. These measures address the remaining issues raised as part of the ongoing review of the program. In particular, the government has implemented measures to fully address the differences in PLT between areas inside and outside school boards. This announcement follows extensive consultations with unincorporated area property owners, secretaries and chairs of local roads and service boards, as well as ongoing discussions with northern municipalities and businesses.

A paper, “Finalizing Provincial Land Tax Reform” outlines the final phase of PLT reform and provides information on the PLT review and consultations.

Overview of the Provincial Land Tax Review

The Provincial Land Tax (PLT) is the property tax paid in unincorporated areas of northern Ontario outside municipal boundaries. The Province collects the PLT to help fund important community services, such as policing, land ambulance, public health, and social services, on behalf of unincorporated areas.

The government announced a review of the PLT in 2013 in response to concerns raised by northern municipalities about significant differences between their property taxes and PLT. The government committed to consult with northerners and to address their concerns in a fair and balanced way.

The 2015 Ontario Budget announced changes to the PLT for 2015 and 2016. This initial stage of PLT reform marked an important first step towards creating a fair and modern PLT. This was the first time in over 60 years that PLT rates were updated to increase revenues. An overview of the PLT changes for 2015 and 2016 can be found in the paper, Provincial Land Tax Reform: A First Step Toward a Fair and Modern Provincial Land Tax System, published in April 2015.

In the 2016 Ontario Budget, the government committed to continue discussions with northerners on ways to further address tax inequities in the North before determining PLT rate adjustments for 2017.

The 2016 Ontario Economic Outlook and Fiscal Review announced changes to the PLT for 2017. These changes significantly increased tax fairness and reduced inequities in how services are paid for in the North. A paper, “A More Equitable and Modern Provincial Land Tax” outlines the PLT changes for 2017 and provides information on the PLT review and consultations.

In the 2017 Ontario Budget the government reaffirmed its commitment to moving forward with PLT reform and establishing a more equitable and modern PLT system.

The final phase of PLT reform was announced in the 2017 Ontario Economic Outlook and Fiscal Review. These final measures build upon the significant progress that has already been made with respect to developing a fair and modern PLT system and respond to key issues raised throughout the review.

The changes announced as part of the final phase of PLT reform include confirming that the tax rate for all unincorporated residential properties would be $250 per $100,000 of assessed value. This tax rate would apply to all residential properties, both inside and outside school board areas. To provide greater certainty and ensure PLT rate adjustments are manageable for property owners, these changes would be phased-in over four years.

Annual changes to residential PLT rates over the next four years are outlined in the table below:

2018 – 2021 Changes to PLT Rates
(Per $100,000 of Assessed Value)
Residential Property Class 2018 2019 2020 2021
Inside School Board $5 $5 $5 $3
Outside School Board $40 $40 $40 $15

Managed forest and farm properties will continue to be taxed at 25 per cent of the residential PLT rate.

Business and residential taxpayers will each contribute an equal share of the projected PLT revenue increase. Under this approach, the PLT rate changes for business properties will continue to be in line with the percentage change for residential properties in areas outside school boards.

With the changes announced in the 2017 Ontario Economic Outlook and Fiscal Review, PLT reform will be completed in 2021, and no further adjustments will be required.

These final measures, in addition to the PLT changes implemented since 2015, ensure that all property owners will contribute their fair share towards the cost of important services in unincorporated areas. With the completion of this final phase of reform, the PLT in northern Ontario will be transformed into a fair and modern property tax system.

If you have any questions about PLT Reform, please send an email to:pltreformoffice@ontario.ca.

How to Contact Us:

Email:

pltreformoffice@ontario.ca

Mail:

Provincial Land Tax
Provincial Local Finance Division
Ministry of Finance
777 Bay Street, 10th Floor
Toronto, ON M5G 2C8

Questions about your tax bill

Contact the Provincial Land Tax Office in Thunder Bay (plt@thunderbay.ca) 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

Tax Relief Programs

There are several tax relief programs available to property tax owners in unincorporated areas. These include grants funded by the Ontario government and property tax relief deferrals for low-income seniors and low-income persons with disabilities. In many cases, the benefits and grants provided through existing tax relief programs can fully offset the total PLT bill for low-income seniors (including PLT, as well as education property tax and local board levies if applicable).

For more information on these programs please refer to the links below:

For more information about PLT:

2017

2016

2015

2014

For information on PLT Payments, Administration and Tax Relief:

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