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You and "YOUR" Property Tax Bill -- One Alternative

By
Services for Real Estate Pros with My Time Is My Own

In an earlier post You and "YOUR" Property Tax Bill -- Is Current Value Assessment (CVA) A Better Way?  I looked at our current assessment system and the unfairness of it for many taxpayers.

Today's example looks at the Durham Region Portion of Your Tax Bill from the point of view taken by some who feel a head tax is more appropriate than property tax for raising taxes locally.

 

THE BACKGROUND

 

Regional Taxes Paid In Millions

It is interesting to note that while the three northern communities paid the smallest portion of the overall region tax bite they also have the smallest populations. Meanwhile Oshawa which has the largest population also pays the highest portion of the overall tax bite.

 

Population 2006 census

In looking at the two charts above you will notice very little movement in the location on the chart or the size of their piece of the pie for each contributing community.

 

HEAD TAX EXAMPLE

Taxes Per Capita

This changes dramatically if you look at the taxes paid on a per capita basis Uxbridge suddenly jumps to the top with over 131% of the average per capita while Oshawa drops to the bottom with almost 88% of the average per capita.

If you agreed with the supporters of a head tax being a better way than our current system it would appear that Uxbridge pays far more than it's fair share to the Region.

THE QUESTION:

DO YOU THINK A HEAD TAX IS A MORE APPROPRIATE METHOD FOR RAISING TAXES LOCALLY THAN PROPERTY TAXES BASED ON MARKET VALUES?

Some disadvantages to a head tax

While both systems have inherit flaws It is not as easy to quantify the number of people living in a home as it is the value of the home
How would you make up for the 8% to 20% of the taxes currently paid for by local business

 

 

Taxes paid and the 2006 census figures are from the article:
North Durham: Drain or Gain by Jeff Hayward in the Uxbridge Times Journal November 12th 2009
Jeff was looking at the northern communities to see if they were a drain or a gain for the Region.
In looking at the figures he uses it would seem that Uxbridge taxpayers may be carrying more than their share.

 

 

 

Stay Tuned --- . 

Earlier posts in the series

You and "YOUR" Property Tax Bill -- My Prescription Provided Pain Relief
You and "YOUR" Propertry Tax Bill -- Assessment Errors Can Be Costly
Understanding Residential Property Assessment in Ontario - #7 in a series on property taxes
You and "YOUR" Property Tax Bill -- Is Your Assessment Fair and Equitable 
You and "YOUR" Property Tax Bill -- OUCH!!!!!
You and "YOUR" Property Tax Bill -- Your Assessment Notice Is In The Mail
You and "YOUR" Property Tax Bill -- Mill Rate Idiosyncrasy's
You and "YOUR" Property Tax Bill -- Is Current Value Assessment (CVA) A Better Way? 
You and "YOUR" Property Tax Bill -- Who Takes The Biggest Bite?

  

It will be interesting to watch what happens to 

 "Your" Property Tax Bill

With province wide re-assessment affecting
your 2009 property tax bill.

Posted by

Posts on Property Assessment and Taxation are for informational purposes only please read the  CAVEAT

Comments(5)

Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Barrie,

 

A head tax could be difficult to promote. A consumption tax is difficult enough.

 

Brian

Nov 30, 2009 11:16 PM
Barrie Clulow
My Time Is My Own - Uxbridge, ON

Brian - There are those who would argue that a head tax is a consumption or user tax. It is just one of several other options that are available. While I do not believe the current assessment process is fair or equitable I also do not think this is an appropriate replacement for it.

My use here is to simply show one more aspect of the unfairness of the current system based on the subjective valuation of a property. This valuation format is very costly to administer, is not fair or equitable and does not take into account ones ability to draw on the services supplied by the taxing authority, or ones ability to pay.

As explained in my post Understanding Residential Property Assessment in Ontario the assessment world currently uses statistical analysis in determining your property assessment. If the information used in that statistical analysis is flawed or incomplete then the analysis itself will be flawed and resulting assessments will be incorrect.

 

 

 

Dec 01, 2009 01:27 AM
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

Barrie, you raise a very excellent question.  Funny today I was just reviewing our property tax which is over $8,000.  Tonight I will watch as I put out our one bag as several of our neighours have many bags in additional to umpteen recycle bins.  Guess you know our answer would be head count please. 

Dec 01, 2009 10:24 AM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Al and Peggy - some areas are cheaper than others when it comes to taxes. You might want to check out Barrie's post on Mill Rate Idiosyncrasy's and do your own comparisons.  

Dec 02, 2009 12:27 AM
Barrie Clulow
My Time Is My Own - Uxbridge, ON

Al and Peggy - I can certainly see why you would like it.

Dec 04, 2009 03:20 AM