CPTA NATIONAL VALUATION & LEGAL SYMPOSIUM Craig Binning February 7 th , 2011
Property Taxes versus  Development Charges <ul><li>Property Taxes </li></ul><ul><ul><li>Fund operating costs and long-term...
What Are Development Charges? <ul><li>A fee charged to new </li></ul><ul><li>development to finance </li></ul><ul><li>the ...
What Are Development Charges? <ul><li>Principle behind development charges is that “Growth pays for growth” so that the fi...
Does Growth Fully Pay For Growth? <ul><li>Development charge shortfalls </li></ul><ul><ul><li>Legislative discounts </li><...
Overview of Canadian Legislation <ul><li>Most Provinces allow for the levying of development charges (DCs)  </li></ul><ul>...
DC Rates across Canada
DC Rates across Ontario
Non-Residential (Retail) DC  Rates in Vaughan
Sample of Development Charges Revenue in the GTA
What to look for in a DC By-law? <ul><li>Statutory exemption for industrial expansion </li></ul><ul><ul><li>50% increase i...
DCs are not the only upfront municipal charges <ul><li>Permit and planning fees </li></ul><ul><li>Parkland dedication or c...
Emerging Trends & Issues <ul><li>Aligning Development Charge rates with Planning Policies </li></ul><ul><ul><li>Downtown r...
Emerging Trends & Issues <ul><li>Impact of conforming with the Ontario Provincial Growth Plan and other “Smart Growth” ini...
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Cpta Symposium 07 Feb2011 Craig Binning Development Charges

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Craig Binning presentation at a Canadian Property Tax Association symposium. February 2011

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Cpta Symposium 07 Feb2011 Craig Binning Development Charges

  1. 1. CPTA NATIONAL VALUATION & LEGAL SYMPOSIUM Craig Binning February 7 th , 2011
  2. 2. Property Taxes versus Development Charges <ul><li>Property Taxes </li></ul><ul><ul><li>Fund operating costs and long-term repair and replacement of municipal infrastructure </li></ul></ul><ul><li>Development Charges </li></ul><ul><ul><li>Fund a share of the initial capital cost of expanding municipal infrastructure to service the needs arising from new development </li></ul></ul>
  3. 3. What Are Development Charges? <ul><li>A fee charged to new </li></ul><ul><li>development to finance </li></ul><ul><li>the cost of development </li></ul><ul><li>related capital facilities </li></ul><ul><li>and infrastructure </li></ul><ul><li>As a municipality grows, new infrastructure and facilities are required to maintain service levels (e.g. Roads, Fire Stations, etc.) </li></ul>
  4. 4. What Are Development Charges? <ul><li>Principle behind development charges is that “Growth pays for growth” so that the financial burden of servicing new development </li></ul><ul><li> is not borne by existing taxpayers </li></ul>
  5. 5. Does Growth Fully Pay For Growth? <ul><li>Development charge shortfalls </li></ul><ul><ul><li>Legislative discounts </li></ul></ul><ul><ul><li>10% service discounts </li></ul></ul><ul><ul><li>Ten-year historic service level limitations </li></ul></ul><ul><ul><li>The “transit” issue </li></ul></ul><ul><ul><li>Non-statutory exemptions </li></ul></ul><ul><ul><li>Capital cost increases beyond indexing </li></ul></ul>
  6. 6. Overview of Canadian Legislation <ul><li>Most Provinces allow for the levying of development charges (DCs) </li></ul><ul><li>The most permissive legislation is in Ontario and British Columbia: </li></ul><ul><ul><li>Allows for recovery of most municipal services </li></ul></ul><ul><li>Other Provinces typically recover for “hard” services (water, sewer, drainage and roads) and sometimes recreation </li></ul><ul><li>Municipalities in Quebec, and in particular Montreal, fund growth-related infrastructure from property taxes and user rates </li></ul>
  7. 7. DC Rates across Canada
  8. 8. DC Rates across Ontario
  9. 9. Non-Residential (Retail) DC Rates in Vaughan
  10. 10. Sample of Development Charges Revenue in the GTA
  11. 11. What to look for in a DC By-law? <ul><li>Statutory exemption for industrial expansion </li></ul><ul><ul><li>50% increase in GFA and no DCs are levied </li></ul></ul><ul><li>Non-statutory exemptions and discounts </li></ul><ul><li>Charges differentiated by type of non-residential land use </li></ul><ul><li>Beware of by-law definitions </li></ul><ul><ul><li>How is GFA define? </li></ul></ul><ul><ul><li>What is commercial, retail, industrial? </li></ul></ul><ul><li>Timing of payment </li></ul>
  12. 12. DCs are not the only upfront municipal charges <ul><li>Permit and planning fees </li></ul><ul><li>Parkland dedication or cash-in-lieu </li></ul><ul><ul><li>Determination of amount of dedication or value of land </li></ul></ul><ul><li>Parking provision or parking-in-lieu </li></ul><ul><ul><li>Determination of amount of provision or value of land </li></ul></ul><ul><li>Height and density bonusing (s.37) </li></ul><ul><li>Onsite servicing </li></ul><ul><li>Other “local” services </li></ul>
  13. 13. Emerging Trends & Issues <ul><li>Aligning Development Charge rates with Planning Policies </li></ul><ul><ul><li>Downtown revitalization </li></ul></ul><ul><ul><li>Brownfield redevelopment </li></ul></ul><ul><ul><li>Intensification </li></ul></ul><ul><ul><li>Specific uses </li></ul></ul>
  14. 14. Emerging Trends & Issues <ul><li>Impact of conforming with the Ontario Provincial Growth Plan and other “Smart Growth” initiatives </li></ul><ul><li>What will the impact be? </li></ul>

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