Consultations: Frequently Asked Questions and Key Facts

FAQ

Q1: Why is the Provincial Land Tax (PLT) being updated?

The government announced a review of the PLT in 2013 in response to concerns raised by Northern municipalities about significant inequities between their municipal property taxes and PLT.  In 2013, the average residential PLT was $164, compared to average residential northern municipal tax of $2,200.  PLT rates have not been adjusted to increase revenue since the 1950s.

The Province committed to address the concerns of northern stakeholders in a fair and balanced way and to bring forward changes that can be implemented beginning in 2015.       

Q2: What PLT changes are in the 2015 Ontario Budget?

The PLT changes for 2015 and 2016 mark an important first step toward reducing property tax inequities and inequities in the way services are paid for between municipalities and unincorporated areas.                      

While the measures in the 2015 Ontario Budget will be fully implemented by 2016, the PLT review will not end with these changes.  The Province will launch a new series of consultations with northern stakeholders on ways to transform the PLT into a fair and modern property tax system.

Q3: How will residential taxes be affected by the PLT changes?

PLT changes announced in the 2015 Ontario Budget will be phased in over two years. For residential taxpayers, the PLT rate will be adjusted by $10 per $100,000 of the assessed value of their property in 2015 and by an additional $40 per $100,000 of assessed value in 2016. 

Beginning in 2016, the minimum PLT will be set at $50 annually for each property to ensure that all property owners make a basic contribution toward the cost of important services.

The government will also ensure that provisions are in place for property tax relief to make changes more manageable for low-income seniors and low-income persons with disabilities.

Q4: How will businesses be affected by the PLT changes?

Business taxpayers will make a contribution that is proportionate to residential taxpayers.  Under this approach, the PLT rate increase for business properties will be in line with the percentage increase for residential properties outside schoolboard areas. 

Beginning in 2016, the minimum PLT will be set at $50 annually for each property to ensure that all property owners make a basic contribution toward the cost of important services.

Q5: How has the Province consulted with stakeholders on the PLT review?

The government announced a review of the PLT in 2013. The 2014 Ontario Budget and the 2014 Ontario Economic Outlook and Fiscal Review confirmed the government’s commitment to consult with northern representatives on PLT.

The Province has consulted with a broad range of Northern stakeholders as part of the review.
In August and September, 2014, 21 consultation sessions were held across the North with unincorporated area representatives of Local Roads Boards, Local Services Boards, and District Social Service Administration Boards.  Meetings were also held with Northern municipalities and municipal associations.

The consultation findings formed the basis of a paper, Provincial Land Tax Review: A Summary of Stakeholder Consultations.  The Ministry released the paper in December 2014 and requested feedback from northern stakeholders.  Northern stakeholders’ input has been invaluable in increasing our understanding of unincorporated areas and the PLT.  

In late March 2015, the Ministry of Finance provided an update on the PLT review that was posted to the Ministry’s website and was mailed to all property owners in unincorporated areas.

In addition to the 2015 Ontario Budget, the Ministry released a paper, Provincial Land Tax Reform: A First Step Toward a Fair and Modern Provincial Land Tax System, which outlines proposals in the 2015 Ontario Budget to modernize PLT.

The Province will launch a new series of consultations with northern stakeholders on ways to transform the PLT into a fair and modern property tax system.

Key Facts

Key Facts*  
Total Provincial Land Tax (PLT) Revenue $11 Million
Combined Total Revenue for Local Roads Boards (LRB) and Local Services Boards (LSB) $9.3 Million
Average Residential PLT $164
Total Number of Properties 63,000
Number of Households (including seasonal and permanent)** 43,307
* Based on 2013 data  
** Source: Municipal Property Assessment Corporation.