Reminder – Let AUMA know if collecting the DI Property Requisition is a significant cost for your municipality
AUMA is following up on a 2018 resolution on the Designated Industrial (DI) Property Requisition Tax, which calls on the provincial government to allow municipalities to cover the value of the requisition as they see fit rather than requiring them to carry out a prescribed requisition process. The resolution explains that the administrative cost of tracking, collecting and forwarding the requisition to the province can be greater than the requisition itself in communities with few industrial properties.
In response, Municipal Affairs is providing an exemption where if the total requisition payable by a municipality is less than $50, the municipality must still apply the DI tax rate to the property owner’s tax bills but does not need to remit it to the province. The Ministry indicates this provision will apply to about 80 villages and summer villages who have very little DI property and it will monitor the ongoing impact of the DI requisition on municipalities.
The cost of requisition is expected to drop now that municipalities have updated their tax systems and processes. Municipal Affairs indicates it is willing to review the remittance exemption level if costs related to the requisition remain high.
Is the cost of collecting and remitting the Designated Industrial Property Requisition Tax still higher than the value of the requisition in your municipality? Let AUMA know if you have concerns with the costs by emailing advocacy [at] auma.ca (advocacy[at]auma[dot]ca) with subject line: DI Requisition Cost
Municipal Affairs has developed a fact sheet with more information on DI Property Requisition Tax Rate.
For more information on the status of resolutions visit AUMA’s Resolutions Library.