Sunday, April 17, 2016
Pelham’s 2016 Residential Taxes Increases by 2.4%
Two months ago I wrote about how Council approved our 2016 Operating Budget. Since the Province issued the property tax rate for Educational purposes last week, I can now provide you with an update on the total 2016 residential property tax bill.
You will recall that the amount of property tax you pay to the Town of Pelham, to the Region, and to the Province (for Education) is not solely based on the Market Value Assessment of your property; we multiply your assessment by each of these three tax rates and add them up for your total bill.
The Municipal Property Assessment Corporation (MPAC) – the Provincial body that sets a value your home and property – re-evaluated and assessed all properties in the Province as of January 1, 2012. While this amount will be used as the value of your home in 2016, MPAC phases in any assessment increases evenly over a four-year period. The Town uses that changing assessment value when we calculate your property taxes each year.
When Town Council approved our 2016 Operating Budget in February, we didn’t know neither the Regional nor the Provincial rates.
Now that the Region approved the property tax rates and ratios last month and that the Province set their rate last week, we know that the combined property tax increase for an average residential property (valued at $309,200) in Pelham will be 2.4%.
Please note that this 2.4% is the “pocket-book” increase – the amount it cost an average residential property owner by adjusting for the average MPAC increase.
(I am sure that you would be interested to know that approximately 1.1% of this 2.4% is attributable to the one-time increase for the Pelham Community Centre.)
How do we measure whether that amount is “affordable” or not?
One independent way to judge whether Pelham’s taxes are “affordable” or not, is to compare them with inflation. For example, the Bank of Canada calculates that, over the last 10 years, inflation increased the value of goods and services by 17.7%. Over the same period, Pelham’s combined taxes for the average residential property in Pelham increased by 17.4% -- slightly less than inflation. And, this includes the amount already included in the Town’s 2016 budget to help fund the Pelham Community Centre.
Pelham Council and I continue to direct staff to ensure that we only minimally impact you and other property tax-payers while we increase the level and quality of services to the Town.