5 things to know about Perry’s beginning-of-the-year finance bylaws

·2 min read

The Township of Perry passed three beginning-of-the-year finance bylaws at the Jan. 20 council meeting.

The province of Ontario requires that municipalities pass bylaws at the beginning of each year to allow for borrowing to cover expenditures, authorizing the interim tax levy and setting tax reduction rates for specific property tax classes.

So, What Is an Interim Tax Levy?

The interim tax levy allows the treasurer to issue temporary tax notices and set due dates, interest and penalty amounts for the new year.

According to a report to council, this allows the municipality to maintain a positive cash flow and reduce the need for borrowing funds to cover operational expenses.

How Does That Affect You?

This year an interim tax payment in the amount of 50 per cent of the total amount of taxes for municipal and school purposes levied on the property shall be levied on all property classes.

The tax levy is payable in two instalments on Feb. 25, 2021, and April 25, 2021.

What Does the ‘Borrowing Bylaw’ Mean?

The borrowing bylaw allows the municipality to temporarily borrow funds to cover operating expenses when necessary. The maximum amount of money allowed to be borrowed, according to the bylaw, is $500,000. The bylaw also includes a clause saying that, to access funds, a resolution must be passed by the council stating the facility and the amount to be borrowed.

What Is a Tax Reduction Bylaw?

The tax reduction bylaw sets out reductions on vacant and excess commercial and industrial property tax rates as well as rate reductions for first-class farmland in all property classes. These rate reductions are set out by the province of Ontario.

What Do the Provincial Tax Reduction Rates Look Like This Year?

The tax rate reductions for 2021 are:

· The vacant land and excess land in the commercial property class is 30 per cent.

· The vacant land and excess land in the industrial property class is 35 per cent.

· First class of farmland awaiting development in residential/farm, multi-residential, commercial or industrial class is 75 per cent while the second class of farmland waiting development is zero per cent.

Commercial property class includes all commercial offices, shopping centres and parking lot properties. Industrial property class includes all large industrial properties and first/second class of farmland awaiting development consist of land defined in accordance with provincial regulations.

Sarah Cooke’s reporting is funded by the Canadian government through its Local Journalism Initiative.

Sarah Cooke, Local Journalism Initiative Reporter, muskokaregion.com