Municipalities set the tax rate for each property class based on the revenue they will need to supply local services such as firefighting, garbage collection and snow removal. Under the legislation, taxpayers will be able to calculate how much tax they will owe on their property by multiplying the tax rate for their property class by the assessed value of the property. If the tax rate for commercial property is twice that of residential property, then the commercial tax ratio will be 2. The tax ratios currently used by the City of Kingston are the transition ratios that were prescribed by the Minister of Finance. Tax Ratio Ranges Ranges of fairness were set by the province for municipal tax ratios.
Municipalities can alter tax ratios within the ranges.
If a ratio is outside the range, a municipality can only move it closer to the range. The tax ratios that exist in each municipality as of January 1, 1998. Transition ratios reflect the relative tax burden of each class just prior to reform. Transition ratios will be based on an effective tax rate - the amount of tax paid by a property class in 1997, divided by the new assessment for that class.