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Policies, Relief, and Rebates

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Tax Policies

The Municipal Act requires upper-tier municipalities establish a number of tax policies, including the setting of tax ratios for the year.

Setting Tax Ratios and Reductions
By-law Number 2022-6 is to set tax ratios and to set tax rate reductions for the prescribed property subclasses for The District Municipality of Muskoka and Area Municipal purposes for the year 2022.
Tax Capping Options

Tax Capping Options for Commercial, Industrial and Multi-residential are set out in By-law Number 2022-6.

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.
Optional Classes

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.  

Property Tax Ratios

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:

 

 ClassThe District
Municipality of
Muskoka Current
Tax Ratio
Provincial Range of Fairness Options

Residential

1.0

1.0

 N/A

Multi-Residential

1.0

1.0 - 1.1

Can change ratios within range

New Multi-Residential

1.0

1.0 - 1.1

 

Commercial

1.1

0.6 - 1.1 

 

Industrial

1.1

0.6 - 1.1

 

Pipeline

0.7

0.6 - 0.7

 

Farmland

0.25

0 - 0.25

Can change ratio below 0.25

Managed Forest

0.25

0.25

N/A

Landfill

1.1

0.6 - 1.1

Can change ratios within range

 

Relief Programs

A number of relief programs have been established:

Tax Reduction for Farmland Awaiting Development Subclasses
Section 383 of the Municipal Act allows municipalities to establish two categories of farmland awaiting development:
  • 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 2022-6.

Graduated Tax Rates  
The District has not opted for the use of graduated tax rates.

Section 314 of the Municipal Act allows municipalities to establish two or three bands of assessment of property for the purposes of facilitating graduated tax rates within the commercial property class and the industrial property class.

The purpose of graduated tax rates is to provide tax relief for properties with lower values and increase the proportional tax burden for properties with higher values. In practice, the introduction of graduated tax rates is discriminatory, adds greater confusion and complexity to the tax bill and may create additional, undesirable tax impacts within the class.
Low Income Deferral 
Section 319 of the Municipal Act authorizes municipalities to pass a by-law providing for deferrals or cancellation of, or to provide relief in respect of, all or part of an assessment related tax increase over the past year, on property in the Residential property class for persons assessed as owners who are a:
  • 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.

Heritage Properties

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 2017-131, 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.

Unduly Burdensome for Uncapped Classes
The District does not have a policy as it relates to unduly burdensome tax relief.

Section 365 of the Municipal Act allows municipalities to pass a by-law to provide for the cancellation, reduction or refund of taxes levied for local municipal and school board purposes in the year by the Council in respect to an eligible property of any person who makes an application in that year to the municipality for that relief and whose taxes are considered by the Council to be unduly burdensome, as defined in the by-law:
  • "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.
Brownfield Development  

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.

Solid Waste Special Rating Area Levies 

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.

Rebates

Rebates are available within the following categories:

Vacant Unit Rebates

Effective January 1, 2018, the Vacant Unit Rebate Program has been discontinued for both commercial and industrial properties. 

Tax Rebate Program for properties used and occupied by persons who served in the Armed Forces
The District provides for a 100% rebate program effective for the taxation years 2007 through to 2022 (as noted in By-law Numbers 2007-63 , 2007-65 and 2012-31), for real property actually used and occupied as a memorial home, clubhouse or athletic grounds by persons who served in the armed forces of His or Her Majesty or an ally of His or Her Majesty in any way as provided for under section 361 (4) of the Municipal Act.

The eligibility of the tax rebate is not restricted to the occupancy of a commercial or industrial class as the policy allows for the legions to also occupy property in the residential class.

Please complete the Tax Rebates for Registered Charities Application Form  and submit to your local Area Municipality (link to area municipality website page) to apply for a rebate.
Charity Rebates
Section 361 of the Municipal Act requires municipalities to provide rebates to charities, and may extend that rebate program to non-profit organizations. The Act stipulates that municipalities must rebate at least 40% of the taxes paid by registered charities.

A charity is eligible if:

It is a registered charity as defined in subsection 248 (1) of the Income Tax Act (Canada) that has a registration number issued by the Canada Customs and Revenue Agency; and

It occupies a property in one of the Commercial classes or Industrial classes, within the meaning of subsection 308 (1) 2001, c. 25, s. 361 (2).

Municipalities also have the option to expand the program:

To provide for rebates to organizations that are similar to eligible charities or a class of such organizations defined by the municipality.

To expand eligibility if the charities or similar organizations occupy property in any class of real property.

To provide for rebates that are greater than 40%.

To provide for different rebate amounts for different eligible charities or similar organizations up to 100% of the taxes paid.

By-law Number 2007-63 provides the guidelines for the The Muskoka Charities Tax Rebate Program including amounts of rebates, timing of payments, similar organizations deemed to be eligible charities and implementation guidelines.

Please complete the Tax Rebates for Registered Charities Application Form and submit to your local Area Municipality to ably for a rebate.

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70 Pine Street
Bracebridge, ON P1L 1N3

Phone: 705-645-2100
Fax: 705-645-5319

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