2025 Tax Policy and Other Revenue Matters
File No ACS2025-FCS-REV-0001 - Citywide Report recommendation(s) That the Finance and Corporate Services Committee recommend that Council: 1. Discontinue the optional Parking Lot and Vacant Land property class and eliminate Vacant Land subclass discounts. 2. Approve a four-year plan to reduce the Multi-Residential tax ratio to 1.0000, subject to review after a province wide reassessment. 3. Adopt the following optional property tax classes in 2025: Shopping Centre property class Office Building property class Large Industrial property class Professional Sports Facility property class Small Business property subclass Small-scale business on farm subclass I & II 4. Adopt the following tax ratios for 2025: Property Class                         Ratio*Residential                              1.00000Multi-Residential                    1.30000New Multi-Residential            1.00000Farm                                         0.20000Managed Forest                      0.25000Pipeline                                    1.71980Commercial Broad Class       1.97077Commercial                             1.92343Office Building                        2.38681Shopping Centre                    1.54793Professional Sports Facility  1.92343Industrial Broad Class           2.26631Industrial                                 2.35889Large Industrial                      2.02568Landfill                                    2.76212Aggregate Extraction            2.09599*Subject to final minor revisions upon Ontario Property Tax Analysis close-off. 5. Adopt the following tax reductions for the 2025 tax year: Small business subclass: 15 per cent Farm land awaiting development subclass I: 25 per cent Farm land awaiting development subclass II: No discount Small-scale business on farm subclass I: 75 per cent Small-scale business on farm subclass II: 75 per cent Commercial (including office and shopping classes) and Industrial excess and vacant land: No discount 6. Approve that the municipal tax rates for 2025 be established based on the ratios adopted herein.7. Approve that the 2025 capping and clawback provisions be as follows: That capping parameters be approved at the higher of 10 per cent of the previous year's annualized tax or 10 per cent of the 2025 Current Value Assessment (CVA) taxes. That capped or clawed-back properties whose recalculated annualized taxes fall within $500 of their CVA taxation be moved to their CVA tax for the year and be excluded from any future capping adjustments. That properties that have reached their CVA during the current year be excluded from any future capping adjustments. Continue the accelerated exit of the capping program, phased out over four years, where the final year of the capping program will be 2026. 8. Approve the property tax and water mitigation programs previously approved by Council, including the changes and additions for 2025 as follows: Charitable Rebate Program Farm Grant Program Low-Income Seniors and Persons with Disabilities Tax and/or Water Deferral Programs and set the income threshold for 2025 applicants to$56,556. Approve the proposed By-law to establish tax relief parameters under section 357 of the Municipal Act, 2001 and approve those applications for tax relief under section 357 1(d)(ii) and 1(g) be determined using the following parameters and as described in this report and in the general form set out in Document 2: Section 357 1(d)(ii), for buildings damaged by fire, demolition or otherwise rendering them substantially unusable, a 35 per cent property tax adjustment for the space affected. Section 357 1(g), for properties undergoing repairs and renovation which prevented normal use of the land for a period of at least three months, a 25 per cent property tax adjustment for the space affected. 9. Approve the introduction of a new service fee for Pre-Authorized Debit plans.10. Adopt the notional tax rate adjustment for the City of Ottawa as prescribed in the property tax-related regulations made under the Municipal Act, 2001.11. Approve that $4.3 million in additional tax revenue from the application of the notional tax rate adjustment be allocated as follows: $1.7 million be contributed to the assessment growth for 2025 and $2.6 million be allocated to Councillor budgets as aligned by the third-party review and Motion No. 2025–50-14. 12. Approve that the 2026 property tax and due date provisions be as follows: That the interim 2026 property tax billing be set at 50 per cent of the 2025 adjusted/annualized taxes as permitted by legislation. That the following tax due dates be approved for 2026: Interim: March 19, 2026 Final: June 18, 2026. That the penalty and interest percentage charged on overdue and unpaid tax arrears remain at 1.25 per cent per month (15 per cent per year) for 2026, unchanged from 2025. That Council enact a by-law to establish the 2026 interim taxes, tax due dates, penalty and interest charges. 13. Adopt an annual levy on eligible institutions pursuant to Section 323 of theMunicipal Act, 2001, and Ontario Regulation 384/98 as follows: $75 per full-time student in attendance at universities and colleges, pursuant to Section 323 (1) $75 per resident placed in correctional institutions, pursuant to Section 323 (2) $75 per rated bed in public hospitals, pursuant to Section 323 (3) $75 per place in provincial educational institutions, pursuant to Section 323 (5). 14. Approve the changes to the service fees for the Payment Card ProcessingBy-law, as outlined in this report.

• Report - 2025 Tax Policy and Other Revenue Matters-AODA.pdf
• Document 1 - Appendix A - AODA.pdf
• Document 2 – Draft By-law to establish tax relief parameters -AODA.pdf