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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Altus Group Limited | TSX:AIF | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 50.52 | 50.33 | 50.75 | 0 | 01:00:00 |
Across Canada, all property owners pay tax based on the assessed value of their property, but the tax rate per dollar of property value varies depending on whether that property is used for residential or commercial purposes. This report examines how shifts in value between classes of property influence tax increases with a spotlight on how municipal efforts to mitigate tax increases can further contribute to inequities.
Commercial-to-residential tax ratio
The commercial-to-residential tax ratio is the key measure in the report that compares the commercial tax rate to the residential tax rate. For example, if the ratio is 2.50, this means that the commercial tax rate is two-and-a-half times (2.5x) the residential tax rate.
The 2022 report found that seven out of the 11 cities surveyed have a commercial tax rate that is more than double the residential tax rate, which means that a commercial property incurs property taxes more than twice the amount of an equally valued residential property. The average commercial-to-residential tax ratio in 2022 was 2.80, reflecting a slight increase of 2.42% from the 2021 average ratio of 2.73. The rise in the average ratio was largely driven by the ratio increases in Calgary, Edmonton, and Halifax, ranging from 6.5% to more than 10%.
Year-Over-Year Commercial-to-Residential Tax Ratios | |||
City | 2022 | 2021 | % Change 2021 to 2022 |
Montreal | 4.21 | 4.17 | 1.08% |
Quebec City | 3.51 | 3.47 | 1.30% |
Vancouver | 3.46 | 3.41 | 1.35% |
Toronto | 3.36 | 3.44 | -2.42% |
Calgary | 3.07 | 2.78 | 10.27% |
Halifax | 3.06 | 2.85 | 7.16% |
Average | 2.80 | 2.73 | 2.42% |
Edmonton | 2.68 | 2.52 | 6.53% |
Ottawa | 2.39 | 2.37 | 0.95% |
Winnipeg | 1.92 | 1.93 | -0.23% |
Saskatoon | 1.61 | 1.61 | 0.18% |
Regina | 1.51 | 1.51 | -0.09% |
“The post pandemic market is incredibly volatile, and governments need to be proactive to address the value shifts without increasing inequities between commercial and residential taxpayers,” said Kyle Fletcher, President of Property Tax Canada at Altus Group. “There are two factors that drive property taxes – assessed values and municipal revenue requirements. To achieve equitable taxation and to support economic recovery, governments like Ontario’s need to embrace more frequent reassessment to keep up with market changes, and municipalities need to move away from policies that shift a greater portion of the tax burden to commercial properties.”
Regional trend analysis
Tax mitigation tools
New for 2022, the report provides a spotlight on tax mitigation tools that are currently being implemented or proposed across the cities surveyed. In response to sudden or significant increases in tax burden, or for other policy reasons, provincial or local governments may implement certain measures such as assessment phase-ins, tax rate adjustments, capping or rebate programs to impact the amount of taxes paid by a segment of properties. The challenge with tax mitigation tools is that for every property that benefits, another property must subsidize those benefits.
A copy of the Altus Group 2022 Canadian Property Tax Rate Benchmark Report can be downloaded at: https://www.altusgroup.com/reports/canadian-property-tax-benchmark-report/
About Altus Group
Altus Group provides the global commercial real estate industry with vital actionable intelligence solutions driven by our de facto standard ARGUS technology, unparalleled asset level data, and market leading expertise. A market leader in providing Intelligence as a Service, Altus Group empowers CRE professionals to make well-informed decisions with greater speed and scale to maximize returns and reduce risk. Trusted by most of the world’s largest CRE leaders, our solutions for the valuation, performance, and risk management of CRE assets are integrated into workflows critical to success across the CRE value chain. Founded in 2005, Altus Group is a global company with approximately 2,650 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX: AIF) please visit altusgroup.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Elizabeth Lambe Director, Global Communications, Altus Group (416) 641-9787 Elizabeth.Lambe@altusgroup.com
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