A Provincial Perspective for Condominiums

A Provincial Perspective for Condominiums Property Tax Charges versus Municipal Service Delivery Outsourcing and Condo Fees Fairness comes in many guises Province - Regions - Municipalities Places to Grow Act and other legislation Harmonized Sales Tax Your City - Your Call Future Forecast Posters Property Tax Reform

What services do you get from your city? What services do you pay for with condo fees? 1

In non-condo homes, this happens... City Hall But In condominium homes, this happens... City Hall Condos never have access to the same services that non-condos do, even though they are taxed the same! Some condos receive services that other condos do not! As soon as a non-condo subdivision is finished, its streets are assumed by the city and, faster than you can say favourtism, the homeowners receive every service the municipality delivers. At the same time, as soon as a condo development is complete, the city starts to collect huge property taxes but only delivers some of their services. The condo owners are left to use condo fees to pay for any services denied by the city/region. 2

Could a conversation like this be happening at Queen s Park or at your City Hall? Since you were recently elected I thought you should know about a great scheme to increase revenue and decrease expenses. Sure itʼs legal. All we have to do is build condominiums instead of detached homes. What kind of scheme are you talking about and is it legal? Tell me more. If we build condos we can get up to 50 times more taxpayers into the same area. Then we charge them the same property tax as detached homes would pay. But what is really great, is we can get away with not delivering some services, like maintenance to condo streets, sewers, fire hydrants and streetlight repairs. We also donʼt have to worry about larviciding and we may even cut back on waste collection. But who will pay for those services? No problem. The condos can pay that from their condo fees. Letʼs go in for coffee. City Hall 3

A Tale of Two City Blocks!! How much revenue is generated by two different residential developments, each covering one city block? 16 Non-condo single family detached homes (each about the same size). CVA property taxes $3,000 ea. Total property taxes paid to the city = $48,000. Each property is 50 wide (approx. 15m). $$$$ Two City Blocks (each 300 x 300 ) One 20 storey condominium with 10 residential units per floor, for a total of 200 units. CVA property taxes $3,000 ea. Total property taxes paid to the city = $600,000. The overall size is 250 x 250. 12.5 times more revenue generated $$$$$$$$$$ $$$$$$$$$$ $$$$$$$$$$ $$$$$$$$$$ $$$$$$$$$$ A higher condo with more units would generate even higher revenue. 4

What is the cost to provide utilities to two different residential developments, each covering one city block? Sixteen gas lines @ $200 per house. Sixteen water lines @ $200 per house. Sixteen hydro connections @ $200 per house. Based on these estimates, the total cost of connecting these three utilities, from the main feeders to each house would be $9,600. Estimated cost of 1,200 of main feeder lines for each utility (3,600 in total) @ $50 per foot = $180,000. Note: Since actual costs are unknown, the amounts used are kept uniform for each utility. 16 Non-condo single family detached homes (each about the same size). Grand Total = $189,600 One 20 storey condominium with 10 residential units per floor, for a total of 200 units. One gas line @ $500 = $500. One water line @ $500 = $500. One hydro connection @ $500 = $500. Based on these estimates, the total cost of connecting these three utilities to this condo would be $1,500. Estimated cost of 300 of main feeder lines for each utility (900 in total) @ $100 per foot = $90,000. Note: Since actual cost are unknown, the amounts used are kept the same for each utility. Grand Total = $91,500 5

What is the annual cost to provide services (such as street maintenance, waste removal, streetlight servicing, sewer cleaning, fire hydrant maintenance and larviciding) to two different residential developments, each covering one city block? 16 Non-condo single family detached homes (each about the same size). Total cost of outsourcing of any services listed = $0.00 Non-condo Single Detached Homes Maintaining 1,200 of street (all streets that houses face), including sidewalks, curbs and boulevard trees @ $10 per foot = $12,000. Waste removal @ $200 per house = $3,200. Streetlight servicing @ $30 per light for 20 lights = $600. Sewer cleaning for 12 sewers @ $15 each = $180. Fire hydrant maintenance for eight hydrants @ $25 each = $200. Larviciding in each sewer @ $5 each = $60. Total cost to city = $16,240. One 20 storey condominium with 10 residential units per floor, for a total of 200 units. Total cost of outsourcing = $300... on top of property taxes. Highrise Condo Maintaining 300 of street (on which the condo faces), including sidewalk, curbs and boulevard trees) @ $10 per foot = $3,000. Waste removal (not organics or bulk items) = $2,000. Streetlight servicing @ $30 per light for 5 lights - $150. Sewer cleaning for 3 sewers @ $15 each = $45. Fire hydrant maintenance for two hydrants @ $25 each = $50. Larviciding in each sewer @ $5 each = $15. Total cost to city = $5,260 Note: The internal roadway has 2 sewers, 3 streetlights and 1 fire hydrant - all of which are outsourced and paid for by condo fees. Waste removal of organics and bulk also are paid by condo fees. 6

Townhouse Condo This townhouse condominium (only a portion is shown) has many internal roadways. It s located on two city streets (highlighted in red). It is made up of 150 townhouse units. Recycling collection is provided by the city but all other waste collection is the responsibility of the condo corporation, through condo fees. This costs approx. $3,000 per year. Similarly all streetlights, sewers and fire hydrants on the internal roadways must be maintained by condos fees. These services cost approx. $2,500 per year. Snowplowing adds another $2,500. Total cost of outsourcing = $8,000... on top of property taxes. Note: The internal roadways have 20 sewers, 35 streetlights and 15 fire hydrants - all of which are outsourced and paid for by condo fees. Condominiums Non-Condominiums $ Condominiums versus Non-Condominiums Revenue to City Types of Residences Cost to City 7

100% 100% 60% Percentage of Municipal Services Delivered to Condominiums (30% - 60%) versus Non-Condominiums (100%) % 30% Condominiums Non-Condominiums Types of Residences Fitness Centers Social Centers Hobby Centers Pools 0 Public Pools Intrinsic Value of Condominium Amenities versus Cost of Same Amenities of Non-Condominiums Types of Residences Senior Centre Recreation Centre Note The cost of providing these amenities by the city is substantially reduced by similar amenities provided by condominiums. 8

Condominium Growth in Selected Urban Centers Across Ontario Number of Active Condo Projects in Dec. 2011 350 325 300 275 250 225 200 175 150 125 100 75 50 25 Legend: Condo (not townhouses) Townhouses Summary: This data indicates that there were a total of 1,451 active condominium projects (of all kinds) in these 8 municipalities as of the end of 2011. What does this mean? Toronto Ottawa Mississauga Richmond Hill Hamilton Brampton Vaughan Markham Information Source: BuzzBuzzHome.com Canada s Largest New Home Database 9

Places to Grow Legislation The Places to Grow Act, 2005 combats urban sprawl by requiring higher densities in city cores. The Plan: Redevelopment of a city core to a mixed-use residential, employment and commercial district. The Reality: New condominiums are built resulting in increased property values. As property values rise, so do Current Value Assessments, followed by substantial increases in property taxes. Owners of commercial and retail properties raise rents to cover the increases in taxes. Many business owners can not pay the increased rents and are forced to relocate, close their doors or go into bankruptcy. The net affect is reduced density - the exact opposite of the government s intention. This scenario also means that condo owners must pay higher property taxes even though there is no change in the delivery of services. Infrastructure Demands: As more and more pressure is brought to bare on cities to increase densities, there is an ever-increasing demand for infrastructure. Halton estimates it will need $8.6 billion through to 2031; York Region will need $11.1 billion; Kitchener will need $240 million; and Niagara Falls will need $100 million. Where will this money come from? Is it possible that condos will bear this financial load through higher taxes, higher unit prices or decreased services? Is it possible that condo owners will bear the increased infrastructure costs? Balanced Growth: Another possibility is for even more condos to be built to take the place of empty retail or commercial buildings. If condos are built on prime office space or instead of retail, will that attract new condo owners? Could that result in fewer developments left to pay for a vibrant city core? What affect will the Urban Growth Centres (next page) have on condominiums, besides increasing the number of them? 10

A Sample of Urban Growth Centres I N T E N S I F I C A T I O N 11

Greenbelt Legislation Confines Growth There are fewer and fewer places to grow! Yours to Discover 12

Outsourcing via Condo Fees First you get hit with property taxes - and you say, Well OK we all have to support the delivery of services! Then condo fees are added - and you say, Well OK we want that party room, fitness centre, pool and other amenities! Then the city says, You ll have to also pay for sewer and streetlight maintenance, and some other services...! The shakedown continues until! Larviciding Fire Hydrants Amenities Streetlights Property Taxes Road Maintenance Bulk Waste Collection Snow Plowing Sewers The result is obvious and predictable! When you lived in a non-condo single family home, all services were delivered automatically, no questions asked!! Is This Fair? When you moved to a townhouse condo, many of the services you once received, now have to be paid for by your condo fees!! 13

Outsourcing Fallout... When budgets become strained, maintenance is often postponed. When maintenance is not done, infrastructure deteriorates. If infrastructure deteriorates, facilities can become unsafe or untrustworthy. Lack of maintenance will lead to reduced property values. Any reduction in property values will mean reduced property tax revenue. Outsourcing costs can result in neglected facilities, which in turn can deter future sales. Experience has shown that this downward spiral can lead to a ghetto. What Can be Done? Increase municipally delivered services so that condos and non-condos receive identical services; and/or Provide a rebate to condominiums where outsourcing is required for any undeliverable service; and/or If a service or a rebate is not possible, the city could extend bulk purchasing prices to condos that are equal to the prices paid by the city (providing those bulk prices are lower than that paid by the condo for an independent contracted service); and Lobby the provincial government to establish two new property classes (one for townhouse condos and one for highrise condos). How Can Any of These Initiatives be Achieved? All parties involved - condo representatives, city representatives, region representatives - must work together with the goal of changing the status quo. Initiate a permanent advisory committee made up of these stakeholders. Establish a positive working relationship of equals working toward a common objective. Foster a harmonious and optimistic atmosphere of cooperation and do not let conflict or confrontation get a toe-hold in any deliberations. Focus on how to make change happen - not on why it can t happen. We each have a piece of the puzzle - let s share. EQUAL TAXES DESERVES EQUAL SERVICES 14

Your City - Your Condo - Your Call You may be one person to the world, but to one person, you may be the world. No matter the number of quotations, they will not affect any change. What can you do? Here s 3 suggestions, as a start. ONE Print a letter (see sample on next page) and send copies to every elected official in your area. Do not send emails - they are too easy to ignore. TWO Talk to your condo manager and board of directors. Send (or deliver) a letter to each of them. THREE Talk to other condo owners and ask them to do what you re doing. Start a Fair Tax group. Check out www.fairtaxescampaign.com Use the information in these pages to become informed about this crucial issue. Together we can make a difference!!! 15

Sample Letter to Elected Representatives Dear...: My name is and I am a condo owner in the city of. As you know condominiums are classed as residential properties, exactly the same as non-condo single family homes. That means condo home-owners are assessed property taxes identical to non-condo homeowners. But that is where the similarity ends. While non-condo developments receive all municipal services automatically, their condo neighbours do not. These services include fire hydrant testing, street-lighting, sewer maintenance, larviciding for west nile virus, snow plowing, road maintenance, and the list goes on. Condo corporations are forced to outsource many services and pay for them with condo fees. Thus condo owners end up paying twice for services - it s like double taxation! Its ironic that at the same time that condos pay twice for services, they provide municipalities with 20% to 30% more tax revenue per hectare than do non-condos - not to mention the added city benefit of costing much less to connect utilities. Condos also use less energy per household than non-condos. Condos lessen the burden on civic recreation facilities by providing fitness centers, pools, party rooms, hobby facilities, etc. As a concerned taxpayer I would ask that action be initiated to address this unfairness. Here are few suggestions to ease the burden: Provide the same services to condos as non-condos. Provide rebates for services not delivered. Allow a city s bulk rates for delivery of a service to be used by condos. Urge the provincial government to establish two new property classes - one for townhouse condos and one for highrise condos. Access to private property is not an issue. All levels of government already access condo properties on a regular basis - whether to enforce private property parking by-laws, install post office super mailboxes (and bulk boxes) and enforcement of handicap and Fire Route parking restrictions. I thank you for your time and I look forward to your reply. My contact info follows. Sincerely, 16

Fairness Comes in Many Guises 1. While this document is mainly about the question of property taxes and municipal services, we must not lose sight of other issues of concern to condo owners in all corners of Ontario. 2. When it comes to changing policies - especially government policies, it should be realized that real change will probably be very slow. Change may come in increments, and sometimes small changes will happen without being noticed. 3. Fairness is not a finite objective which can be measured with any degree of accuracy. It is a subjective concept open to many interpretations. 4. Fairness is not a matter of beating someone else, neither is it a matter of winners and losers. 5. Fairness must be pursued in a cooperative manner and never in a combative fashion. 6. All participants in discussions must celebrate even small steps forward. For example if no change comes out of this (or any other) campaign, but new bonds are made and all sides begin to understand each other, then real progress has been made. Similarly, if more condominiums become aware of CCI and the advantages of membership, then a positive step has been taken. 7. Fairness may be difficult to achieve because it is so elusive. Get clear about the situation. What are the facts, thoughts and feelings of the issue? Identify the complexities. What are the related issues, questions, considerations or factors? Explore different viewpoints. How do different people see the situation? Consider what you might do. What could you do to make it more fair? Decide what s important. What are the priorities now and in the future? Figuring Fair out 17

Future Forecast Gazing at a Crystal Ball may foretell the future for some people or in some instances, but it will not belie what is in store for the condominium industry. There is no shortage of seers ready to predict what the future holds. Past activity may help in setting trends in areas such as Toronto, but other urban areas are less affected by that booming market. Growth: In 1985 many people thought of condos as cheap alternatives to single family homes. Most were sold to older empty-nesters. In 2011 the real estate market has evolved in its affinity for condo life. Condos are seen as a cost-effective and a more convenient homestyle for younger urban professionals. Condo designs have added a myriad of amenities and are located in busy downtown core areas, close to offices, retail and entertainment. Toronto is a particular unique example of this trend. The city boasts both the largest and the smallest condos on the market. Some are designed with no parking facilities, but with interesting features. Many experts expect that intensification targets, set by the province, will fuel continued condo growth outside the GTA. Future direction within the GTA seems to be less sure. Most predictions call for the current building frenzy to continue for the short term - 5 to 10 years. After that, the jury is divided - some expect the condo boom to carry through to at least 2030. Others see it tapering off long before that date. Fair Property Taxes & Service Delivery: Since this campaign began, almost all politicians are now aware of the issue. Several municipalities have already implemented some changes in service delivery and paying rebates. Cities have written reports and discussed and studied possible actions. Several cities are planning changes, which they hope to implement in 2012 or 2013. CCI is optimistic that more changes will be made. Change takes time and a great deal of cooperative effort. One positive side effect of this campaign is that many more condo owners are becoming aware of CCI and the tremendous benefits of membership. 18

Ontario Provincial Fair Taxes Campaign Ideas At the Municipal Level (Cities, towns, regions)... The focus on municipal and regional governments has been to increase services, paid for by our property taxes. This has resulted in a wide recognition of the inconsistency of delivering such services as sewer and catch basin cleaning, fire hydrant servicing, street light maintenance, inclusion in larviciding programs, waste collection, etc. to all types of condos. Access to city and regional services must be provided equally to condos and detached homes. Many condo corporations have joined the Fair Tax campaign and are spreading the news that CCI is working for them. In some areas where a service is not available to condos, compensation (rebate) is provided. When a city out-sources a service it usually obtains a bulk price that is lower than what condos in the same area pay. Some discussions are now taking place to provide the same pricing structure to condo corporations. This is seen as a small gain which may lead to an even more equitable treatment in the future. 19

Suggested challenges to present to your Council members: Form a Condominium Advisory Committee, made up of members of local government, city staff and condo directors, which would meet regularly to discuss issues of mutual concern. Rather than looking for reasons to justify not delivering services - look for ways to address what CCI perceives as double taxation. Immediately look at coordinating city departments that are responsible for larvaciding (Health Dept.) and fire hydrant servicing (PUC Dept.) and departments responsible for other services and direct that all those services be delivered to condos. Lobby the provincial government to establish new property class(es) for condominiums that is/are lower than for detached homes. Implement the provision of the Municipal Act which allows a municipality to apply area specific property tax rates and apply that policy to condominiums. Implement tax rebates as outlined in the Municipal Act. Put an action plan in place to use the provisions of Section 365 of the Municipal Act to provide 20

relief from the current inequitable property tax system between condominiums and detached homes. The Fair Taxes Campaign objectives must be directed to local elected officials. At the Provincial Level... Lobby MPPs to support a unique property class for condominiums that recognize the level of service delivery. The Markham Condominium Working Group has introduced the idea of a unique property class for condominiums because the current provincial classification of properties is unfair. Condos are not the same as detached homes and should not be classified or taxed the same. Condo Facts... Today there are roughly 600,000 condo units in Ontario housing at least one million residents. The National Post stated the, Condo Boom is Spreading to the Suburbs. According to the Building Industry and Land Development Assoc. - 7 of 10 new properties sold in the GTA were condominiums. Toronto claims 76% of all GTA condo sales for the same period. Peel Region condo sales climbed by 164% over 2009 sales. 21

York Region sales increased by 138% over 2009 sales. Since 100 condo units are cheaper to service than 100 detached homes and yet pay the same property taxes, the result is that condos are subsidizing lower property taxes for detached homes. In fact, as more condos are built the amount of this subsidy goes up. Is there any wonder why municipalities continue to approve more and more condo developments, even if it means changing their official plans or amending zoning by-laws? Someone recently made the observation that it s easier to get a condo development approved than to get city permission to cut down a tree. Another reason that cities are so eager to attract condominium developments is that they can collect huge property taxes without having to provide services equal to what they deliver to detachedhome subdivisions. Condominiums make it possible for the province to implement its Places to Grow guidelines. Condominiums combat urban sprawl. Condos provide safe and affordable living opportunities. Condo amenities provide a high quality of life for all residents. 22

Marketing CCI... The Canadian Condominium Institute is the preeminent non-profit organization entirely devoted to assisting and promoting the condominium community across Canada. CCI provides up-to-date educational courses to equip condo directors and owners with the skills and knowledge needed to conduct condo affairs in a diligent and effective manner. CCI offers professional assistance to ensure that proper services are directed to address specific needs. CCI legal experts are committed to improving the legislation governing condominiums and ensuring that condo owners and directors are protected and that there voice is heard. CCI has set the bar very high for competency standards for all the professionals who deal with condos. When anyone sees ACCI after a person s name they know that person has achieved that level of accreditation and can be trusted to provide the highest possible level of service. CCI courses and seminars provide invaluable networking opportunities and access to professional advice from condo experts. CCI raises awareness of important issues such as the Fair Taxes Campaign. CCI must take all steps necessary to spread their story to every condominium owner. 23

POSTERS The next few pages will include various Fair Tax posters which may be helpful to you. You are welcome to use them as they are or modify them to suit your specific area or needs. Of course you are also welcome to design your own. If designing your own posters, the poster s use will usually dictate what they will look like and how big they are. Remember to include CCI logo. Here are some criteria that may be helpful: A poster should catch a person s attention and interest; A poster should provide a simple strait-forward message; A poster should use eye catching slogans; A poster should be bright and colourful; A poster should be readable at a reasonable distance; Don t be afraid of using humour, if it is appropriate; Posters should look professionally made. Remember, you only have ONE chance to make a first impression. 24

Are you getting fair value for your Property Taxe$? We don t want Special Treatment, just Fair Treatment!!! 25

Condominium corporations should be so lucky as to have access to services such as these. City's spring cleanup underway... The city s annual street sweeping and cleaning program is also well underway. Through this program a contractor will sweep and clean all roadways in Burlington. This work is currently ongoing and is scheduled to be completed by the middle of May. The City of Brampton manages more than 36,000 streetlights. The City contracts maintenance of all street lighting to an external contractor. The contractor responds to all service complaints, inspects the system for lights not working, replaces all defective lamps and photo controls, repairs all aerial and underground street light faults, repairs all knocked-down street light poles and defective fixtures. GUELPH, ON, April 11, 2011 Guelph Water Services will begin the spring phase of its Watermain Cleaning Program tonight. Watermain cleaning in the affected areas will be completed between 8 p.m. and 6 a.m. to minimize impact on customers. This maintenance work is scheduled for completion by May 6. 26

FAIR TAX CAMPAIGN How Much Do You Pay For Services Like These? Waste Collection and Recycling Sewer Maintenance Fire Hydrant Testing and Servicing Streetlight Servicing Larvaciding Non-Condo Detached Homeowners Pay This Much Condo Corporations Pay This Much Property Taxes Property Taxes PLUS Condo Fees 27

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Detached Home Property Tax Parity Condo 29

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Property Tax Reform for Condominiums It may seem strange, but when the province of Ontario (including MPAC) sees this 12 storey lakefront condominium in the suburban city of Burlington, they don t see it as it appears in this photo - with 122 residential units set on a podium of 12 commercial units. Instead, they see 122 single family detached dwellings and 12 separate retail outlets... something like the photos at the bottom of the page. No consideration is given to the efficiencies of the highrise condominium design. No consideration is given to the wasted space of single detached buildings. No consideration is given the the environmentally friendly design of a condominium. No consideration is given to much reduced cost of providing sewers, streetlights, roads, fire hydrants, sidewalks, water pipes, electrical connections, landscaping or any other utility or infrastructure device to the condominium versus all the single buildings. No consideration is given to the much smaller long-term servicing costs, reduced water usage, reduced hydro usage or the reduced demand for social and recreational facilities of a condominium compared to to the wasteful detached homes. No consideration is given to the reduced impact on urban sprawl of condominiums. No consideration is given to reduced transit needs of condominiums. Condominiums must be classified differently and assessed property taxes at a lower rate than detached buildings. The condominium at the top of this page is not the same as the homes and businesses shown to the left and below - but to the province they are identical. 31

Case Study Provincial Government Perspective Residential = Commercial 122 Residential Units + 12 Commercial Units = This graphic illustrates the same relationship (between actual reality and perceived reality) as shown on the previous page. Realistic Perspective This graphic illustrates one city block and the actual area required for the 12-storey condominium. This city block is identical in area to each of the nine city blocks depicted on the next page. Since when are nine city blocks equal to about 1/3 of one city block? 32

Eight blocks of single family detached homes surrounding one block of commercial/ retail businesses. Each block includes city sidewalks, city boulevards with city trees, street lighting, fire hydrants, restrictive parking signs, etc. Provincial Government Perspective Provincial property assessment (by MPAC) is completed as though there are 122 single detached homes requiring approximately 8 city blocks and 12 commercial businesses requiring about one city block. 33

Moral Responsibility vs Legal Responsibility Schedule E of Each Condominium s Declaration Specifications of Common Expenses Some municipalities will argue that they do not have to provide certain city services because they are mandated in a condominium s declaration to be the sole responsibility of the condominium corporation and are to paid for by condo fees. At face value this argument seems to watertight... but there are several things that need to kept in mind... such as: 1. According to the Condominium Act, only by-laws and rules have to be reasonable. That means a Declaration can virtually say anything. 2. When it comes to a new condominium development, the municipal planning staff (and others) have a lot of input and requirements that must be followed by the developer before any building permits are issued. a) This city influence not only deals with design, engineering and site plans, it also deals with requirements that must be included in the Declaration. b) One of those areas where the city has specific demands deals with what services will be provided by the municipality and which services will be taken care of by the condominium corporation. c) This means that a city may require that Schedule E of a condominium s Declaration indicate that services such as snow removal, road maintenance, garbage collection, etc. are the responsibility of the condominium corporation. d) Although the format for all Declarations is similar, there can be specific differences from one condominium to another. This has resulted in different service requirements for different condominiums. One might receive garbage collection and another one may have to outsource the service and pay for it out of their condominium fees. 3. Therefore if a municipality uses the argument that one or more services are not their responsibility (because of Schedule E), remember it was the municipality that demanded that that provision be included in your declaration. 4. While it may be argued that some services are the legal responsibilities of condominium corporations, it is also important to remember that all homeowners (whether from condominiums or non-condominiums) should have access to the same services. It is, at least, the moral responsibility of each municipality to ensure service delivery to all. 5. The Ontario Municipal Act allows a municipality flexibility in how they fund services. Area ratings, user fees and rebates are some of the ways a municipality may address this issue. 34

Multi-family Residential Property Class (Apartments) compared with Residential Property Class (Condominiums) There are seven major property classes in Ontario and eight optional classes. The major classes are: Residential, Multi-residential, Commercial, Industrial, Pipe Line, Farm and Managed Forests. These seven property classes are used by MPAC to calculate the property and education taxes owed by each property owner. Municipalities assign different tax rates to each property class. Condominiums (especially highrise) are often compared to apartment buildings. Is one type of home better off than the other, from a cost point of view? Apartments Condominiums Usually one owner The one owner pays property taxes The apartment has access to all services All legitimate expenses can be deducted (from income tax) against the rental income earned (including property taxes, repairs, improvements and maintenance). Any profit from the sale of building is taxable. The owner pays no other fees MPAC assessment completed based on the Income method with one assessment value for the entire building. Usually many owners Each owner pays property taxes The condominium does not have access to all services There are no legitimate expenses that a condominium owner can deduct from his/her income tax. Any profit from sale of unit is taxable, if unit is not a principle residence. If unit is a principle residence, no tax is paid Each owner pays condominium fees MPAC assessment completed based on sales (CVA) of individual units. Halton Tax Rate in 2011 was.01961657 Halton Tax Rate in 2011 was.00996134 For a 100 unit apartment (each apt. = 1,000 sq. ft.), the property taxes would be about ************ For a 100 unit condominium (each unit = 1,000 sq.ft.), the total property taxes would be about ********** While the tax rate for the multi-residential class is approximately two times higher than the residential class tax rate, the assessment (when determined on a per unit basis) is usually lower. Generally speaking, the taxes per unit for multi-residential are lower than condominiums. 35