Revised Presentation re Chatham-Kent Association of

REALTORS

January 7, 2013 Budget Information Session

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Purpose Concern raised by CKAR member: Clients moving to CK feel they pay more municipal tax

on their CK home as compared to their former home. Information presented: • Background information on CK taxes • The mechanics of municipal taxation • How CK taxes compare to:

– Mississauga – Oshawa – Toronto – Whitby

• Opportunities available to those moving from the GTA

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Relative Tax

Bungalow Burden … 2012

Greater Sudbury 2,714

St. Thomas 2,767

Sarnia 2,806

Chatham-Kent 2,858

Guelph 2,905

Kitchener 2,933

Group Median 2,940

Cambridge 2,946

Windsor 2,957

Group Average 2,988

Survey Average 2,995

Kingston 3,056

London 3,080

Thunder Bay 3,162

Whitby 3,670

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Bungalow ... 2012 Relative Tax Burden

2012 Relative Tax Burden Comparison … Bungalow

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Relative Tax

Bungalow Burden … 2012

Sarnia 4,850

Chatham-Kent 4,923

Cambridge 5,354

Kitchener 5,406

London 5,536

Guelph 5,538

Group Median 5,538

Group Average 5,624

Survey Average 5,659

Greater Sudbury 5,672

Whitby 5,672

Kingston 5,758

Windsor 6,202

Thunder Bay 6,949

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Senior Executive ... 2012 Relative Tax Burden

2012 Relative Tax Burden Comparison … Senior Executive Home

All All Mix

Medium Higher of

Scale Scale Both

Number of homes:

Medium scale 28 0 14

Higher scale 0 28 14

Average assessment:

Medium scale 153,000 153,000 153,000

Higher scale 250,000 250,000 250,000

Percentage of total assessment:

Medium scale 100% 0% 38%

Higher scale 0% 100% 62%

Net municipal budget 68,600 68,600 68,600

Resulting tax rate 1.601% 0.980% 1.216%

Taxes levied:

On medium scale homes 68,600 0 26,044

On higher scale homes 0 68,600 42,556

Total 68,600 68,600 68,600

Average tax per home:

On medium scale homes 2,450 n/a 1,860

On higher scale homes n/a 2,450 3,040

The Mechanics of Municipal Taxation

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City Avg. Residential Assessment

Toronto 447,090

Mississauga 429,000

Whitby 308,600

Oshawa 270,000

Chatham-Kent 153,000

Average Residential Assessment 2012

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For simplicity, this presentation has chosen list prices equal to the above average residential assessments

CHATHAM List prices chosen to equal average assessment for 2012 of $153,000 ...

2011 taxes ranging from $2,450 to 2,753

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MISSISSAUGA List prices chosen to equal average assessment for 2012 of $429,000

2011 taxes ranging from $2,522 to $3,430

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MISSISSAUGA 2012 List Price $429,000

2011 taxes ranging from $2,522 to $3,430

Equivalent house in Chatham …

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Quality of Life Options If Moving to CK From Mississauga

Average home in Mississauga

CK home @ same tax level

CK home @ same list price

CK home @ average tax level in CK

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OSHAWA List prices chosen to equal average assessment for 2012 of $270,000

2011 taxes ranging from $3,346 to $3,554

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OSHAWA

2012 list price $270,000 2011 taxes ranging from $3,346 to $3,554

Equivalent house in Chatham …

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Quality of Life Options If Moving to CK From Oshawa

Average home in Oshawa

CK home @ same tax level

CK home @ same list price

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Taxes $3,346

CK home @ average tax level in CK

$3,346

TORONTO List prices chosen to equal average

assessment for 2012 of $447,090

2011 taxes ranging from $2,254 to $2,957

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TORONTO 2012 list price $447,090

2011 taxes ranging from $2,254 to $2,957

Equivalent house in Chatham …

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$5,678

Quality of Life Options If Moving to CK From Toronto

Average home in Toronto

CK home @ same tax level

CK home @ same list price

CK home @ average tax level in CK

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Taxes $2,560

$5,678

WHITBY List prices chosen to equal average assessment for 2012 of $308,600

2011 taxes ranging from $3,359 to $3,732

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WHITBY

2012 list price $308,600 2011 taxes ranging from $3,359 to $3,732

Equivalent house in Chatham …

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Quality of Life Options If Moving to CK From Whitby

Average home in Whitby

CK home @ same tax level

CK home @ same list price

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CK home @ average tax level in CK

Oshawa Average

Chatham Average

Whitby Average

Mississauga Average

Toronto Average

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$2,854

2011 taxes $2,560

Tax Comparison

City Average

Residential Value

Taxes in Home Muni.

Taxes in CK at Same

Price

Toronto 447,900 2,606 5,678

Mississauga 429,000 2,976 5,984

Whitby 308,600 3,546 5,080

Oshawa 270,000 3,450 4,607

Chatham-Kent 153,000 2,602 2,602

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City

List Price in Home Municipality

Taxes in Home

Municipality

CK Home Price Where Taxes

Would be Equal to Previous Home

Toronto 447,900 2,606 153,000

Mississauga 429,000 2,976 189,900

Whitby 308,600 3,546 222,900

Oshawa 270,000 3,450 199,900

Chatham-Kent 153,000 2,602 153,000

When moving to CK from an average home in other areas, what is the maximum purchase price of a home in CK if the desire is to pay the same amount of taxes as in previous municipality?

See previous slides for the relativity of house amenities 22

City2

List Price in Home Municipality

Taxes in Home

Municipality

CK Home Price Where Taxes

Would be Equal to Previous Home

Toronto 447,900 2,606 153,000

Mississauga 429,000 2,976 189,900

Whitby 308,600 3,546 222,900

Oshawa 270,000 3,450 199,900

Chatham-Kent 153,000 2,602 153,000

When moving to CK from an average home in other areas, what is the maximum purchase price of a home in CK if the desire is

to pay the average amount of taxes in CK?

See previous slides for the relativity of house amenities 23

Discussion

Discussion

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