TAX MATTERS - TRANSITION RATIOS AND AVERAGE TRANSITION RATIOS

CONTENTS Definitions Transition Ratios Multi-Residential Property Class New Multi-Residential Property Class Landfill Property Class Property Classes New to Municipality Optional Property Classes New to Municipality Average Transition Ratios Aggregate Extraction Property Class Definitions 0.1 In this Regulation, “commercial classes” has the meaning set out in subsection 308 (1) of the Act; (“catégories commerciales”) “industrial classes” has the meaning set out in subsection 308 (1) of the Act; (“catégories industrielles”) “optional property class” has the meaning set out in subsection 308 (1) of the Act; (“catégorie de biens facultative”) “previous year” means, in respect of a taxation year, the immediately preceding taxation year; (“année précédente”) “specified residential class” means the residential, farm, managed forest or new multi-residential property class; (“catégorie résidentielle déterminée”) “unadjusted tax ratio” means, in respect of a property class for a taxation year, (a) the tax ratio for the property class for the previous year, or (b) if section 8 of Ontario Regulation 73/03 (Tax Matters - Special Tax Rates and Limits) made under the Act applied to the property class in the previous year, (i) the tax ratio for the property class for the taxation year that is determined under subsection 7 (1) of that regulation if the property in the class is in a single-tier municipality, or (ii) if the property in the class is in an upper-tier municipality, the tax ratio for the property class for the taxation year that would be determined under subsection 7 (1) of that regulation if that subsection were to apply to the upper-tier municipality and if subsections 7 (2) and (3) of that regulation were not to apply. (“coefficient d’impôt non redressé”) O. Reg. 162/09, s. 1; O. Reg. 56/10, s. 1; O. Reg. 339/11, s. 1; O. Reg. 62/12, s. 1; O. Reg. 442/12, s. 1; O. Reg. 4/14, s. 1; O. Reg. 13/15, s. 1; O. Reg. 105/16, s. 1; O. Reg. 65/17, s. 1; O. Reg. 22/18, s. 1; O. Reg. 67/19, s. 1; O. Reg. 3/20, s. 1; O. Reg. 334/21, s. 1; O. Reg. 575/22, s. 1. 1.-8. Revoked: O. Reg. 56/10, s. 2. Transition Ratios 9. (1) This section applies for a taxation year to a municipality if, in comparison to the previous year, the percentage of total tax revenue for the taxation year derived from tax on property in a class other than a specified residential class would be lower in the taxation year if the unadjusted tax ratio for the taxation year was applied. O. Reg. 56/10, s. 4 (1); O. Reg. 575/22, s. 2 (1). (2) If this section applies to a municipality, the municipality may establish a tax ratio for the taxation year for the property class referred to in subsection (1) that is greater than the unadjusted tax ratio for the class but not greater than the transition ratio determined for the class under this section. O. Reg. 162/09, s. 3; O. Reg. 56/10, s. 4 (2); O. Reg. 575/22, s. 2 (1). (3) If a municipality establishes a tax ratio for a property class under subsection (2), the transition ratios determined under this section apply to the municipality for the taxation year except for the purposes of, (a) the specified residential classes; (a.1) the landfill property class; and (b) an optional property class if the taxation year is the first year in which the optional property class applies in the municipality. O. Reg. 162/09, s. 3; O. Reg. 56/10, s. 4 (3, 4); O. Reg. 95/17, s. 2; O. Reg. 575/22, s. 2 (1). (4) The following rules apply for the purposes of this section: 1. The total assessment of the properties in a property class for the previous year includes all assessments made for the purposes of taxation for the previous year that are made after the return of the roll for the previous year. 2. In determining the total assessment of the properties in a property class for the taxation year, a municipality may elect to exclude the assessment of a property in the property class, i. if the current value of the property, A. has, before any adjustment under subsection 19.1 (3) of the Assessment Act, increased by 100 per cent or such greater percentage as the municipality elects since 2012, or B. has decreased by 25 per cent or such greater percentage as the municipality elects since 2012, and ii. if the municipality also excludes the assessment of the property in determining the total assessment of the properties in the property class for the previous year. 2.1 For the purposes of the 2025 taxation year, in determining the total assessment of properties in a property class, a municipality shall exclude, i. the assessment of property that is classified in the aggregate extraction property class for the 2025 taxation year, and ii. the assessment of property that was classified in the subclass for property used for aggregate extraction for the 2024 taxation year. 3. An optional property class is considered to be a separate property class for the purposes of subsection (5). O. Reg. 162/09, s. 3; O. Reg. 56/10, s. 4 (5-7); O. Reg. 442/12, s. 2; O. Reg. 575/22, s. 2 (1); O. Reg. 510/24, s. 1 (1). (5) Subject to sections 9.2, 9.3, 10, 11, 11.1 and 13, the transition ratio for a property class for the purposes of subsection 308 (10) of the Act is determined as follows: 1. Multiply the unadjusted tax ratio for the property class for the taxation year by the amount of the total assessment of the properties in that property class for the year. 2. Multiply the unadjusted tax ratio for the property class for the taxation year by the amount of the total assessment of the properties in that property class for the previous year. 3. Determine the weighted reassessment change for the specified residential classes by dividing “A” by “B” where, “A” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the specified residential classes, and “B” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the specified residential classes. 4. Determine the weighted reassessment change for the commercial classes by dividing “C” by “D” where, “C” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the commercial classes, and “D” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the commercial classes. 5. Determine the weighted reassessment change for the industrial classes by dividing “E” by “F” where, “E” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the industrial classes, and “F” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the industrial classes. 6. For each property class that is not included in the specified residential classes, the commercial classes or the industrial classes, determine the weighted reassessment change for the property class by dividing the amount determined under paragraph 1 for the property class by the amount determined under paragraph 2 for the property class. 7. Determine the adjustment factor for each property class by dividing “G” by “H” where, “G” is, (a) the weighted reassessment change for the commercial classes as determined under paragraph 4 if the property class is included in the commercial classes, (b) the weighted reassessment change for the industrial classes as determined under paragraph 5 if the property class is included in the industrial classes, or (c) the weighted reassessment change for the property class as determined under paragraph 6 if the property class is not included in the specified residential classes, the commercial classes or the industrial classes, and “H” is the weighted reassessment change for the specified residential classes as determined under paragraph 3. 8. Determine the transition ratio for the property class for the taxation year by dividing the unadjusted tax ratio for the property class for the year by the adjustment factor for the property class determined under paragraph 7. O. Reg. 162/09, s. 3; O. Reg. 56/10, s. 4 (8-10); O. Reg. 65/17, s. 2; O. Reg. 575/22, s. 2 (2); O. Reg. 510/24, s. 1 (2). Multi-Residential Property Class 9.1 (1) This section applies for a taxation year to a municipality if, (a) in comparison to the previous year, the percentage of total tax revenue for the taxation year derived from tax on property in the multi-residential property class would be higher in the taxation year if the unadjusted tax ratio for the taxation year was applied; (b) the unadjusted tax ratio for the multi-residential property class for the taxation year is equal to or greater than 2.0; and (c) the municipality does not establish a tax ratio under subsection 9 (2). O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 3. (2) The transition ratio for the multi-residential property class for the taxation year is the greater of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 9 (5). O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 3. 9.2 (1) This section applies for a taxation year to a municipality if, in comparison to the previous year, the percentage of total tax revenue for the taxation year derived from tax on property in the multi-residential property class would be lower in the taxation year if the unadjusted tax ratio for the taxation year was applied. O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 4. (2) If the unadjusted tax ratio for the multi-residential property class is equal to or greater than 2.0, the transition ratio for the property class for the taxation year is equal to the unadjusted tax ratio. O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 4. (3) If the unadjusted tax ratio for the multi-residential property class is less than 2.0 and if the municipality establishes a tax ratio under subsection 9 (2), the transition ratio for the property class for the taxation year is the lesser of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 9 (5). O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 4. 9.3 (1) This section applies for a taxation year to a municipality if the percentage of total revenue for the taxation year derived from tax on property in the multi-residential property class would be the equal to the previous year’s if the unadjusted tax ratio for the taxation year was applied. O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 5. (2) If the unadjusted tax ratio for the multi-residential property class is equal to or greater than 2.0, the transition ratio for the property class for the taxation year shall be determined as follows: 1. Take the greater of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 9 (5). 2. The transition ratio is the lesser of the amount determined under paragraph 1 and the unadjusted tax ratio for the property class. O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 5. (3) If the unadjusted tax ratio for the multi-residential property class is less than 2.0 and if the municipality establishes a tax ratio under subsection 9 (2), the transition ratio for the property class for the taxation year is the lesser of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 9 (5). O. Reg. 65/17, s. 3; O. Reg. 575/22, s. 5. New Multi-Residential Property Class 10. For the 2017 taxation year, the transition ratio for the new multi-residential property class in a municipality is 1.0. O. Reg. 262/17, s. 1. 10.1 Revoked: O. Reg. 262/17, s. 2. Landfill Property Class 10.2 (1) For the purposes of subsection 308 (10) of the Act, the transition ratio for the landfill property class in a municipality for a taxation year shall be determined as follows: 1. Multiply the unadjusted tax ratio for the landfill property class for the taxation year by the amount of the total assessment of the properties in that property class for the year. 2. Multiply the unadjusted tax ratio for the landfill property class for the taxation year by the amount of the total assessment of the properties in that property class for the previous year. 3. Determine the weighted reassessment change for the landfill property class by dividing the amount determined under paragraph 1 by the amount determined under paragraph 2. 4. Determine the adjustment factor by dividing “A” by “B” where, “A” is the weighted reassessment change for the landfill property class as determined under paragraph 3, and “B” is the weighted reassessment change for the specified residential classes as determined under paragraph 3 of subsection 9 (5). 5. Divide the unadjusted tax ratio for the landfill property class for the taxation year by the adjustment factor determined under paragraph 4. 6. Determine the transition ratio for the landfill property class for the taxation year by multiplying the amount determined under paragraph 5 by 1.05. O. Reg. 95/17, s. 3; O. Reg. 575/22, s. 6. (2) The following rules apply to the calculation in subsection (1) for the 2017 taxation year: 1. For the purposes of paragraph 1 of subsection (1), the unadjusted tax ratio for the landfill property class is equal to the unadjusted tax ratio for the commercial property class. 2. For the purposes of paragraph 2 of subsection (1), the amount of the total assessment of the properties in the landfill property class for the previous year is deemed to be the amount of the total assessment of the properties in the 2016 taxation year that are classified in the landfill property class for the 2017 taxation year. O. Reg. 95/17, s. 3. (3) Despite paragraph 6 of subsection (1), for the County of Lambton, the transition ratio for the landfill property class for the taxation year is determined by multiplying the amount determined under paragraph 5 of subsection (1) by 1.2. O. Reg. 95/17, s. 3; O. Reg. 575/22, s. 6. (4) The following rules apply to the Municipality of Chatham-Kent: 1. For the 2017 taxation year, despite subsection (1), the transition ratio for the landfill property class is 5.752080. 2. For the 2018 taxation year and subsequent taxation years, despite paragraph 6 of subsection (1), the transition ratio for the landfill property class for the taxation year is determined by multiplying the amount determined under paragraph 5 of subsection (1) by 1.1. O. Reg. 95/17, s. 3. (5) The following rules apply to the County of Elgin: 1. For the 2017 taxation year, despite subsection (1), the transition ratio for the landfill property class is 34.024061. 2. For the 2018 taxation year and subsequent taxation years, despite paragraph 6 of subsection (1), the transition ratio for the landfill property class for the taxation year is equal to the amount determined under paragraph 5 of subsection (1). O. Reg. 95/17, s. 3. Property Classes New to Municipality 11. The following rules apply for the purposes of subsection 308 (10) of the Act in determining the transition ratio for a property class in a municipality for a taxation year: 1. Subject to sections 10, 10.2 and 13 and paragraphs 2 and 3 of this section, the transition ratio for a year for a property class other than an optional property class is the upper limit of the allowable range of tax ratios prescribed for the property class if no property was classified in the property class in the previous year. 2. If no property was classified in the commercial classes in the previous year and property was classified in the industrial classes in the previous year, i. the municipality may elect to have the average transition ratio for the industrial classes prescribed in paragraph 2 of subsection 12 (1) apply to both the commercial classes and the industrial classes, or ii. if paragraph 2 of subsection 12 (1) does not apply in the municipality, the municipality may elect to have the transition ratio for the industrial classes apply for the taxation year to both the commercial classes and the industrial classes. 3. If no property was classified in the industrial classes in the previous year and property was classified in the commercial classes in the previous year, i. the municipality may elect to have the average transition ratio for the commercial classes prescribed in paragraph 1 of subsection 12 (1) apply to both the commercial classes and the industrial classes, or ii. if paragraph 1 of subsection 12 (1) does not apply in the municipality, the municipality may elect to have the transition ratio for the commercial classes apply to both the commercial classes and the industrial classes. O. Reg. 162/09, s. 3; O. Reg. 56/10, s. 6; O. Reg. 105/16, s. 2; O. Reg. 95/17, s. 4; O. Reg. 262/17, s. 3; O. Reg. 575/22, s. 7; O. Reg. 510/24, s. 2. Optional Property Classes New to Municipality 11.1 (1) For the purposes of subsection 308 (10) of the Act, the transition ratio for an optional property class if no property was classified in the optional property class in the previous year is equal to the tax ratio that would apply to the property that is in the optional property class if the optional property class had not been adopted. O. Reg. 575/22, s. 8. (2) For the purposes of subsection 308 (11) of the Act, the average transition ratio for the commercial classes or the industrial classes, as the case may be, for the first year that an optional property class applies or ceases to apply in a municipality is equal to, (a) if the optional property class is one of the commercial classes, the weighted average, for the previous year, of the tax ratios for the commercial classes as determined in accordance with subsection 308 (14) of the Act; and (b) if the optional property class is one of the industrial classes, the weighted average, for the previous year, of the tax ratios for the industrial classes as determined in accordance with subsection 308 (14) of the Act. O. Reg. 575/22, s. 8. Average Transition Ratios 12. (1) The following rules apply for the purposes of subsection 308 (10) of the Act for a taxation year: 1. The prescribed average transition ratio for the commercial classes is the weighted average of the taxation year’s transition ratios for the property classes within the commercial classes. 2. The prescribed average transition ratio for the industrial classes is the weighted average of the taxation year’s transition ratios for the property classes within the industrial classes. O. Reg. 162/09, s. 3; O. Reg. 56/10, s. 7 (1-3); O. Reg. 575/22, s. 9. (2) For the purposes of subsection (1), the weighted average of the taxation year’s transition ratios is calculated using the formula in subsection 308 (14) of the Act, except that the phrase “tax ratios” in the portion before paragraph 1 shall be read as “transition ratios” and the phrase “tax ratio” in paragraph 1 shall be read as “transition ratio”. O. Reg. 162/09, s. 3; O. Reg. 56/10, s. 7 (4); O. Reg. 575/22, s. 9. (3) This section does not apply to determine transition ratios for the commercial classes or industrial classes, as the case may be, in the first year an optional property class applies in a municipality. O. Reg. 162/09, s. 3. Aggregate Extraction Property Class 13. For the 2025 taxation year, the transition ratios set out in Column 2 of the Table to this section are prescribed for the aggregate extraction property class for the municipalities set out opposite in Column 1 of the Table. O. Reg. 510/24, s. 3. Table Column 1 Municipality Column 2 Transition Ratio Alberton, Township of 0.836165 Armour, Township of 0.822786 Armstrong, Township of 1.566162 Assiginack, Township of 0.626554 Atikokan, Township of 1.561999 Baldwin, Township of 0.895077 Barrie, City of 1.233846 Belleville, City of 1.952895 Black River-Matheson, Township of 2.140048 Blind River, Town of 0.938529 Bonfield, Township of 1.026084 Brant, County of 2.074951 Bruce, County of 1.422115 Bruce Mines, Town of 2.084762 Burk’s Falls, Village of 1.155789 Callander, Municipality of 1.097301 Calvin, Township of 2.081886 Carling, Township of 1.785028 Central Manitoulin, Township of 0.978156 Chamberlain, Township of 0.866199 Chapple, Township of 1.614287 Chatham-Kent, Municipality of 1.655893 Chisholm, Township of 0.895077 Cochrane, Town of 1.579765 Coleman, Township of 2.034266 Conmee, Township of 1.423986 Dryden, City of 1.188764 Dufferin, County of 1.788852 Durham, Region of 1.646535 Ear Falls, Township of 2.023238 East Ferris, Municipality of 0.813706 Elgin, County of 1.810578 Elliot Lake, City of 1.200217 Essex, County of 1.580625 Fauquier-Strickland, Township of 0.630785 Fort Frances, Town of 2.099301 French River, Municipality of 1.322436 Frontenac, County of 0.813706 Gordon/Barrie Island, Municipality of 0.499616 Grey, County of 1.489896 Haldimand, County of 1.893820 Haliburton, County of 1.398029 Halton, Region of 1.701216 Hamilton, City of 2.446490 Hastings, County of 0.895077 Hilliard, Township of 0.895077 Hilton, Township of 0.895077 Hudson, Township of 0.682862 Huron, County of 0.895077 Huron Shores, Municipality of 1.009647 Iroquois Falls, Town of 1.800142 Jocelyn, Township of 0.857728 Johnson, Township of 1.169866 Joly, Township of 0.853253 Kapuskasing, Town of 1.224661 Kawartha Lakes, City of 1.095613 Kearney, Town of 0.716468 Kenora, City of 1.809886 Killarney, Municipality of 1.220003 Kingston, City of 2.140048 Kirkland Lake, Town of 3.093586 Laird, Township of 0.795073 Lake of the Woods, Township of 0.813706 Lambton, County of 1.666122 Lanark, County of 2.060008 Leeds and Grenville, United Counties of 1.473948 Lennox and Addington, County of 1.765743 London, City of 1.554179 Macdonald, Meredith and Aberdeen Additional, Township of 0.895077 Machar, Township of 0.773021 Magnetawan, Municipality of 0.895023 Marathon, Town of 1.830839 Markstay-Warren, Municipality of 1.373283 Mattawan, Township of 0.920839 McDougall, Township of 2.118735 McKellar, Township of 0.895077 McMurrich/Monteith, Township of 0.637132 Middlesex, County of 1.419999 Moonbeam, Township of 0.704588 Morley, Township of 0.895077 Muskoka, District Municipality of 0.895077 Nairn and Hyman, Township of 3.176562 Neebing, Municipality of 0.895077 Niagara, Region of 2.140048 Nipigon, Township of 1.223326 Nipissing, Township of 0.219538 Norfolk, County of 1.377524 North Bay, City of 1.139189 Northeastern Manitoulin and the Islands, Town of 1.449130 Northumberland, County of 1.708783 Oliver Paipoonge, Township of 1.799563 Ottawa, City of 2.095990 Oxford, County of 2.140048 Papineau-Cameron, Township of 1.654021 Parry Sound, Town of 1.233770 Peel, Region of 1.294635 Pelee, Township of 0.797351 Perry, Township of 0.589937 Perth, County of 1.602351 Peterborough, County of 1.255712 Plummer Additional, Township of 1.255630 Powassan, Municipality of 1.424042 Prescott and Russell, United Counties of 1.991052 Prince Edward, County of 1.130645 Quinte West, City of 1.990326 Renfrew, County of 2.007336 Ryerson, Township of 1.036092 Sables-Spanish Rivers, Township of 1.372479 Sault Ste. Marie, City of 3.453236 Seguin, Township of 1.839671 Shuniah, Township of 2.140048 Simcoe, County of 0.970345 Sioux Lookout, Municipality of 2.140048 South Algonquin, Township of 2.140048 Spanish, Town of 0.895077 St. Joseph, Township of 0.895077 Stormont, Dundas and Glengarry, United Counties of 1.679029 Strong, Township of 1.033736 Sudbury, City of Greater 2.809508 Tarbutt, Township of 1.478749 Tehkummah, Township of 0.822425 Temiskaming Shores, Town of 1.860432 The Archipelago, Township of 0.917291 The North Shore, Township of 0.895077 Thunder Bay, City of 1.929164 Timmins, City of 2.034266 Val Rita-Harty, Township of 0.975471 Waterloo, Region of 1.586727 Wawa, Township of 1.424719 Wellington, County of 1.952895 West Nipissing, Municipality of 1.191361 Whitestone, Municipality of 0.813706 York, Region of 1.337082 O. Reg. 510/24, s. 3. 13.,14. Revoked: O. Reg. 575/22, s. 10. 15.,16. Revoked: O. Reg. 22/18, s. 2. 17. Revoked: O. Reg. 575/22, s. 10. Table 1 Revoked: O. Reg. 22/18, s. 3. Tables 2-7 Revoked: O. Reg. 56/10, s. 9.