Policies, Relief, and Rebates

Tax Capping Options for Commercial, Industrial and Multi-residential are set out in By-law Number 2024-06.

In 2017, Council approved the following: 

• Tax capping for Commercial and Industrial properties are set at an upper limit on annual increases at the greater of the existing 10% capped rule or 10% of previous year's annualized taxes with a minimum threshold of $500.
• Properties in the Multi-Residential property class  are no longer eligible for the capping program.
• Properties in the Commercial and Industrial property classes will have moved towards CVA tax over a 4-year phase-out period with the 2020 tax year being the final year.

In 2020, Council approved the following:

• Tax reductions for vacant land and excess land subclasses in the commercial and industrial property classes will be reduced to fifteen (15) percent in 2020 and eliminated in 2021.

Section 308 of the Municipal Act through Ontario Regulation 282/98 (Assessment Act) allows for up to 8 optional classes:

• New multi-residential,
• Office buildings,
• Shopping centres,
• Parking lots,
• Large industrial,
• Residual commercial class,
• Resort condominium, and
• Professional sports facility.

In order to elect a new optional class, a by-law must be passed.  Staff has not recommended exercising this option as creating new tax classes increases disparity between the tax levels of different properties and adds further complexity to the taxation system.  

Section 308 of the Municipal Act requires the upper-tier municipality to pass a by-law each year to establish the tax ratios for that year for the upper-tier municipality and its lower-tier municipalities. Those ratios are reflected in the following table:

• Type (1) with subdivision registered may be taxed at between 25% - 75% of the residential tax rate and can only be increased by 10% per annum.
• Type (2) with building permit issued may be taxed at up to 100% of zoned class rate.

The District's current policy sets the tax rate at 35% for type (1) properties and 100% for type (2) properties as outline in By-law Number 2024-06.

• Low-income senior as defined in the bylaw, or
• Low-income person with disabilities as defined by the by-law.

If the relief is in the form of the cancellation of taxes, the school board must share in the write-off of the taxes. The municipality has the right to charge penalty and interest on any amounts deferred prior to 2001 until such time as it is paid at the rate to be determined by the municipality. The deferred portion of the taxes is deemed to be a lien on the property and must be paid when the property is sold.

The District's current Tax Assistance to Low-income Seniors or Low-income Persons with Disabilities Policy, By-law No. 2009-49 (as amended by By-law 2017-4), defines an eligible person as:

Owners of real property (single family dwelling unit) in the District in the Residential/Farmland property class for not less than one year who are:

• "Low-income person with disabilities" - A person who is in receipt of assistance paid under the Ontario Disability Support Program Act, 1997, Canada Pension Plan Disability Benefit or in receipt of a disability amount paid under the Family Benefits Act (Ontario).
• "Low-income senior" - A person who is 65 years of age or older and in receipt of an increment paid under the Guaranteed Income Supplement (GIS), as established under Part II of the Old Age Security Act (Canada).

Annual Application for Deferral of Local Taxes for Low-income Seniors or Low-income Disabled Property Owners must be made on or before the last day of February in each year and every year.

The District provides for a matching of the local funding commitment of up to $4,000 commencing for the taxation year 2011 as outlined in the Township of Lake of Bays By-law 2024-021, a by-law to establish a Heritage Property Tax Relief Program.

The District also provides for a matching of the local funding commitment of up to $3,000 commencing for the taxation year 2018 as outlined in the Township of Muskoka Lakes By-law 2017-110 , a by-law to establish a Heritage Property Tax Relief Program.

These funds will be used to reduce the upper-tier portion of the property taxes owing on eligible properties under the Heritage Property Tax Relief Program.  The District's funding commitment will be reviewed on an annual basis in conjunction with the lower-tier municipality.

The Township of Lake of Bays and the Township of Muskoka Lakes are the only Area Municipalities within Muskoka that have established a Heritage Property Tax Relief Program. The Township of Lake of Bays and the Township of Muskoka Lakes can provide further information on the program.

• "eligible property" means a property classified in the Residential property class, the Farmland property class, or the Managed Forests property class.
• If an upper-tier municipality has passed a by-law under subsection (2), the amount of the taxes cancelled, reduced or refunded shall be shared by the municipalities and school boards that share the revenue from the taxes on the property affected by the by-law in the same proportion that those municipalities and school boards share in those revenues.

Muskoka does not have a tax policy on Brownfield Development. 

Section 365.1 of the Municipal Act will provide the authority for local municipalities (i.e. lower tier municipalities in two tier structures) to pass by-laws to provide tax reductions during the period when lands are being rehabilitated and redeveloped. In addition, tax reductions for upper-tier taxes can be provided as well where an upper-tier has passed a resolution setting out the level of assistance it is prepared to provide.

Tax reductions for school purposes can also be provided if the Minister of Finance consents to the local municipality's by-law prior to its passing. The Minister may also set conditions and terms with regard to the nature of the assistance for education purposes.

The eligible property can only be eligible for tax assistance if it is within an approved community improvement plan under the Planning Act. Specifically, an eligible property is one for which a phase two environmental site assessment has been conducted and the community improvement project area contains provisions in respect of tax assistance.

Where curbside collection services are not available to a multiple residential building in accordance with the applicable District policies and procedures, the owner of the property may apply to the District as per By-Law No. 2012-28 for a credit against solid waste special rating area levies payable with respect to the property in an amount not exceeding the amount of the levy.

Please complete a Credit Application with Respect to Solid Waste Special Rating Area Levies if you would like to apply for relief.