Consultations: Changes to the Provincial Land Tax

The 2015 Ontario Budget announced Provincial Land Tax (PLT) rate changes for 2015 and 2016. This is an important first step toward creating a fair and modern PLT system that will reduce tax inequities.

What are the 2015 changes for residential PLT?

  • For residential taxpayers, the PLT rates would be adjusted by $10 per $100,000 of the assessed value of their properties in 2015.
Residential Class PLT Rates for 2015
Schoolboard Areas Non Schoolboard Areas
Residential/Multi-residential 0.001717 0.000354
Farm/Managed Forest 0.000429 0.000088
  • The updated 2015 PLT rates would be reflected in your final 2015 tax bill, which will be mailed in June.
  • The government will ensure that property tax relief provisions are in place for low-income seniors and low-income residents with disabilities.

How can I find out more about these PLT changes?

  • You can find more information on the Ministry of Finance’s web site. http://www.fin.gov.on.ca/en/consultations/landtaxreform/
    • Provincial Land Tax Reform: A First Step toward a Fair and Modern Land Tax System outlines the changes proposed in the 2015 Ontario Budget. It is available on the ministry’s web site, along with additional PLT background information.
  • If you cannot access the web site, please contact us at the address below to request that information be mailed to you.

What are the 2015 changes for businesses?

  • The PLT rate adjustments for business properties would be proportionate to the residential rate changes. For example, the commercial and industrial rates would be adjusted by $15 per $100,000 of assessed property value in 2015.
Business Class PLT Rates for 2015
Commercial 0.000694
Industrial 0.000542

What are the PLT changes for 2016?

  • For residential properties, the PLT rates would be adjusted by an additional $40 per $100,000 of assessed property value in 2016.
  • The PLT rate adjustments for business properties would be proportionate to the residential rate changes. For example, the commercial and industrial rates would be adjusted by an additional $65 per $100,000 of assessed property value in 2016.
  • The minimum PLT would be set at $50 annually per property beginning in 2016 to ensure that all unincorporated area property owners make a basic contribution to the cost of important services.
  • The 2015 and 2016 changes require the Building Ontario Up Act to be passed by the Legislature.

What services does PLT help pay for?

  • PLT revenue helps pay for services in unincorporated areas across the North, including policing, land ambulance, public health, and other social services.
  • The PLT collected from unincorporated area property owners covers only a portion of the total provincial expenditure on these services.

What did the PLT review involve?

  • A review of the PLT was announced in the fall of 2013.  PLT rates have not been adjusted to increase revenues since the 1950s.
  • The Ministry of Finance held 21 consultation sessions with unincorporated area representatives across northern Ontario and released a paper that summarized what we heard. We requested feedback on the paper and received numerous helpful responses.
  • In March 2015, we sent the “Provincial Land Tax Review Update” to keep you informed about the results of the review to date.

Is the PLT review finished?

  • These PLT changes would be fully implemented by 2016. However the PLT review will not end with these changes.
  • The Province will continue discussions on ways to further address tax inequities in the North and will launch a new series of consultations with northern Ontarians.

How do I contact the Provincial Land Tax Reform Office?

  • We continue to welcome input on the PLT review.

Email:
pltreformoffice@ontario.ca

Phone:
1-844-637-6465 (toll free)

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