The province directly funds or transfers money to institutions to ensure the delivery of these important responsibilites, as well as provincial highways, culture and tourism, prisons, post-secondary education, and other services to Ontarians. The provincial legislature also has power over all municipal institutions in the province. The powers of municipal governments are determined by the provincial government. Municipal governments raise most of the money for financing these services from the property taxes paid by residents and businesses in the local area. Your municipal government collects property taxes from each property owner.
Tenants pay a portion of their landlord's property taxes through their rent.
The taxes are calculated by multiplying the assessed value of a property by a tax rate. A municipality can set different tax rates for different classes of property, and the main classes include residential, multi-residential, commercial and industrial.