THE CORPORATION OF THE CITY OF NELSON - REQUEST FOR COUNCIL DECISION
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THE CORPORATION OF THE CITY OF NELSON
REQUEST FOR COUNCIL DECISION
DATE: April 13, 2021 Regular
TOPIC: Annual Tax Rate (2021) Bylaw
PROPOSAL: Annual Tax Rate Bylaw No. 3525, 2021 for first three readings and
adoption pursuant to Ministerial Order No. 192
PROPOSED BY: Staff
___________________________________________________________________
ANALYSIS SUMMARY:
Each year City Council approves a Five-Year Financial Plan which establishes the
annual budget and priorities. A Tax Rate bylaw is also required in order to collect the
appropriate funds to finance these activities. The Tax Rate bylaw supports the
initiatives in the City’s Five Year Financial Plan and, therefore, supports the City’s
corporate objectives. The Annual Tax Rate Bylaw No. 3525, 2021 is presented for first
three readings and adoption.
BACKGROUND:
Section 197 of the Community Charter requires that Council adopt, by bylaw, tax rates for
the current year before May 15th. This year City of Nelson taxes are due at the end of the
business day on July 2, 2021. The City of Nelson charges a 10% penalty on taxes paid
after this date. The tax rates presented are based on the 2021-2025 Five-Year Financial
Plan that was presented for first 3 readings and adoption earlier in today’s meeting,
which required a 1.75% increase in the City of Nelson tax rate for 2021. For the average
residential home in Nelson, the municipal property taxes for 2021 are estimated to be
$1,747 (or $146/month).
2020 was a challenging year, as the City and all other levels of government dealt with
the impacts of the COVID-19 pandemic on their budgets and most importantly on their
citizens. The City implemented a 25 Point Action Plan to stabilize and stimulate the
local economy, which included a 0% tax increase, allocating $150,000 in parking meter
funds to support business and upgrade amenities, and the development of shovel ready
capital projects for 2021. The City, along with all other municipalities and regional
districts in the province, received provincial assistance in the form of the COVID-19
Safe Restart Funds. While much of this funding was necessary to support operations in
2020, $1.2M has been carried forward to assist the municipality in getting through this
next recovery period, and to be better prepared to handle future crisis if and when they
may arise.
Municipal taxes make up approximately one half of the taxes on a typical tax notice,
while Regional District, Regional Hospital, School, and BC Assessment and Municipal
Finance Authourity taxes make up the other half. The City of Nelson Tax Rate Bylaw
also includes tax rates for the Regional District and Regional Hospital based on the
requisitions received by these authorities. The Regional District taxes reflect a 6.32%
increase (up $266,687) in the requisition, while Regional Hospital taxes decreased by
7.04% (down $53,208).Council takes a “fixed share approach” to tax rates between classes; where the share of
the total tax levy collected from each property class remains consistent over time,
subject to adjustments arising from non market (i.e. new construction) change in the
Assessment role and/or council decisions to adjust the share for each class. This
commitment from Council can be seen in the Rates History 2007-2021 document that is
attached. In 2021, with the adjustments made for new construction, 74% of property tax
will be contributed by residential taxpayers and 25% from the commercial sector.
Tax Rates
The City of Nelson tax rate bylaw sets rates for the different property classes for
Municipal, Regional District and Regional Hospital levies. Other levies collected through
the municipal tax notice include those for the School Authority, BC Assessment, and the
Municipal Finance Authority. The 2021 tax rates and tax ratio multiples for General
taxation are outlined in the table below:
Class Description Tax Rate Ratio
1 Residential 3.3893 1.000
2 Utilities 31.3470 9.249
3 Supportive Housing 3.3893 1.000
5 Light Industry 6.7423 1.989
6 Business 8.3526 2.464
8 Non Profit 2.0936 0.618
The attached document, 2021 Overall Tax Impact Overview, lists the overall change
from the prior year with the 2021 budgeted tax increases on an average Single Family
Dwelling in Nelson for all agencies the City collects taxes for.
BENEFITS, DISADVANTAGES AND NEGATIVE IMPACTS:
Any tax increase can create concern by some members of the public.
LEGISLATIVE IMPACTS, PRECEDENTS, POLICIES:
The Community Charter requires that Council adopt a tax rates bylaw by May 15th of
each year to meet its financial obligations as outlined in the associated Five-Year
Financial Plan.
COSTS AND BUDGET IMPACT - REVENUE GENERATION:
The Financial Plan for 2021 includes tax revenue of $9,343,659 for general municipal
purposes with an estimated additional $476,000 in general tax revenue being provided
by boundary expansion properties. This tax rate bylaw provides the City with the
authority to assess and collect the required tax funding.
OPTIONS AND ALTERNATIVES:
1. Proceed with first three readings of the bylaw
2. Make additions or deletions to the Tax Rate Bylaw
3. Refer the matter back to staff for further review and recommendationsATTACHMENTS:
• Annual Tax Rate Bylaw No. 3525, 2021
• City of Nelson Tax Rates History 2007-2021
• 2021 Tax impact overview
RECOMMENDATIONS:
That Council passes the following two resolutions:
1. That “The Corporation of the City of Nelson Annual Tax Rate Bylaw No. 3525,
2021" be introduced and read a first and second time by title only.
2. That “The Corporation of the City of Nelson Annual Tax Rate Bylaw No. 3525,
2021" be read a third time by title only.
3. That “The Corporation of the City of Nelson Annual Tax Rate Bylaw No 3525,
2021" be adopted pursuant to the powers granted to Council by Ministerial Order
No. 192.
AUTHOR: REVIEWED BY:
__________________________ __________________________
CHIEF FINANCIAL OFFICER CITY MANAGERTHE CORPORATION OF THE CITY OF NELSON
BYLAW NO. 3525
A BYLAW FOR THE LEVYING OF RATES FOR MUNICIPAL, HOSPITAL AND
REGIONAL DISTRICT PURPOSES FOR THE YEAR 2021
_____________________________________________________________________
WHEREAS Section 197 of the Community Charter requires Municipal Councils, on
or before the 15th day of May in each year, to adopt a bylaw for imposing of Annual
Rates on all taxable land and improvements according to the assessed value thereof.
NOW THEREFORE the Council of the Corporation of the City of Nelson in open meeting
assembled enacts as follows:
1. The following rates are hereby imposed and levied for the year 2021.
a) For all lawful GENERAL purposes of the municipality on the value of land and
improvements taxable for general municipal purposes, (excluding those properties
included in the boundary expansion OIC #602/2003 Supplementary Letters Patent
effective June 19, 2003), rates appearing in column “A” of the Schedule attached
hereto and forming a part hereof.
b) For DEBT purposes of the municipality on the value of land and improvements
taxable for general municipal purposes, (excluding those properties included in the
boundary expansion OIC #602/2003 Supplementary Letters Patent effective June
19, 2003) rates appearing in column “B” of the Schedule attached hereto and
forming a part hereof.
c) For HOSPITAL purposes on the value of land and improvements taxable for West
Kootenay Boundary Regional Hospital District purposes, rates in column “C” of the
Schedule attached hereto and forming a part hereof.
d) For the purposes of the REGIONAL DISTRICT OF CENTRAL KOOTENAY on
the value of land and improvements taxable for regional hospital district purposes,
rates appearing in column “D” of the Schedule attached hereto and forming a part
hereof.
e) For the purpose of the FORTIS PROPERTIES FOR SPECIAL TREATMENT
FOR RDCK FUNCTIONS as stated in the OIC # 602/2003 Supplementary
Letters Patent section 5.1 and 5.2, on the value of land and improvements taxable
for regional hospital district purposes, rates appearing in column “E” of the
Schedule attached hereto and forming a part hereof.
f) For the purpose of the COMINCO PROPERTIES FOR SPECIAL TREATMENT
FOR RDCK FUNCTIONS as stated in the OIC #602/2003 Supplementary Letters
Patent section 5.1 and 5.2, on the value of land and improvements taxable for
regional hospital district purposes, rates appearing in column “F” of the Scheduleattached hereto and forming a part hereof.
g) For those properties included in the boundary expansion OIC#602/2003
Supplementary Letters Patent effective June 19, 2003, for LIBRARY SERVICES,
on the value of land and improvements taxable for regional hospital district
purposes, rates appearing in column “G” of the Schedule attached hereto and
forming a part hereof.
h) For those properties included in the boundary expansion OIC #602/2003
Supplementary Letters Patent effective June 19, 2003, for all lawful GENERAL
purposes of the municipality on the value of land and improvements taxable for
general municipal purposes, the tax rate will be that prescribed for the particular
class pursuant to the Taxation (Rural Area) Act for the prevailing taxation year.
i) For those properties included in the boundary expansion OIC #602/2003
Supplementary Letters Patent effective June 19, 2003, and amended by OIC
#033/2010 effective January 15, 2010, the Police Tax rate will be that tax rate for
the property class applied under section 66.3 (3) (b) of the Police Act for the
prevailing taxation year, on the value of the land and improvements taxable for
regional hospital district purposes for those properties formerly in Electoral Area
E of the regional district.
j) For those properties included in the boundary expansion OIC #602/2003
Supplementary Letters Patent effective June 19, 2003, and amended by OIC
#033/2010 effective January 15, 2010, the Police Tax rate will be that tax rate for
the property class applied under section 66.3 (3) (b) of the Police Act for the
prevailing taxation year, on the value of the land and improvements taxable for
regional hospital district purposes for those properties formerly in Electoral Area
F of the regional district.
k) For those properties included in the boundary expansion OIC #602/2003
Supplementary Letters Patent effective June 19, 2003, and amended by OIC
#033/2010 effective January 15, 2010, the Police Tax rate will be that tax rate for
the property class applied under section 66.3 (3) (b) of the Police Act for the
prevailing taxation year, on the value of the land and improvements taxable for
regional hospital district purposes for those properties formerly in Electoral Area
H of the regional district.
2. The Collector shall add ten percent (10%) to all current taxes or rates remaining unpaid
after close of business, July 2, 2021 on each and every parcel of land and
improvements upon the improvements upon the Collector’s Roll.
The said unpaid current taxes or rates together with the amounts so added, as
aforesaid shall for the respective dates aforesaid be deemed to be the amount of the
taxes for the current year due on such land and improvements thereon.3. The minimum amount of taxation upon a parcel of real property shall be one dollar
($1.00).
4. This Bylaw is cited for all purposes as the "Annual Tax Rate Bylaw No. 3525, 2021."
READ A FIRST TIME the __th day of April, 2021
READ A SECOND TIME the __th day of April, 2021
READ A THIRD TIME the __th day of April, 2021
FINALLY PASSED AND ADOPTED pursuant to the powers granted to
Council by Ministerial Order No. 192, the __ th day of April, 2021.
__________________
Mayor
________________
Corporate OfficerSCHEDULE
2019 TAX RATES (Dollars of tax per $1,000 of taxable assessed value)
A B C D E F G
PROPERTY General Debt West.Koot Regional Specified Specified Library
CLASS Municipal City Boundary District Area Area Service
City Hospital Fortis Cominco (BE OIC
(RDCK) (RDCK) #602)
1. Residential 3.3893 0.0771 0.2222 1.4197 4.1595 0.5024 0.0856
2. Utility 31.3470 0.7130 0.7778 4.9689 4.1595 0.5024 0.2996
3. Supportive
Housing 3.3893 0.0771 0.2222 1.4197
5. Light Industry 6.7423 0.1534 0.7556 4.8270
6. Business 8.3526 0.1900 0.5446 3.4782 4.1595 0.5024 0.2097
8.
Recreational/non-
profit 2.0936 0.0476 0.2222 1.4197City of Nelson
Municipal Tax Rate History ‐ 2007 to 2021
Tax Rates 2006‐2019 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Residential class Municipal rate 4.5443 4.0719 4.1780 4.1050 4.0443 4.1779 4.4219 4.5171 4.5587 4.4933 4.4319 4.1990 3.6519 3.5177 3.3893
Business class Municipal rate 11.2581 10.6082 10.8846 10.2626 10.1108 9.8515 9.4961 9.4142 9.3025 9.0073 9.3070 8.8179 8.8179 8.0126 8.3526
Assessments 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020
Avg SFD Residential assessment 272,067 312,112 313,128 324,946 332,774 332,188 320,301 319,612 316,225 328,814 363,256 393,635 455,786 477,408 504,000 *
Avg Business assessment 254,341 281,076 279,984 309,042 318,351 341,841 358,592 367,479 368,749 390,063 404,064 437,642 457,666 480,963 467,923 *
*taxable assessments w/ new construction
12.0000 600,000
10.0000 500,000
8.0000 Residential class 400,000 Avg SFD Residential
Municipal rate assessment
6.0000 300,000
Avg Business
4.0000 Business class 200,000 assessment
Municipal rate
2.0000 100,000
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20202021 Property Taxes Average SFD 2020 2021 Net Change Assessed Value $ 477,000 $ 504,000 $ 27,000 Property Tax Municipal $ 1,718 $ 1,747 $ 29 RDCK 663 715 52 West Kootenay Hospital 119 112 (7) Total regional taxes $ 2,500 $ 2,574 $ 74 Commercial Property 2020 2021 Net Change Assessed Value $ 1,024,590 $ 1,000,000 $ (24,590) Property Tax Municipal $ 8,401 $ 8,543 $ 142 RDCK 3,488 3,478 (10) West Kootenay Hospital 624 545 (79) Total regional taxes $ 12,513 $ 12,566 $ 53 * School Tax and other tax rates are determined by their corresponding authority at a later date
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