THUNDER BAY — Thunder Bay City Manager Norm Gale says statistics published on a real estate website fail to provide a complete perspective on the city's residential property taxes compared with other Ontario communities.
Having a higher tax rate, Gale stated Tuesday, doesn't necessarily equate to higher taxation.
Under the banner "Ontario cities with the Highest and Lowest Property Tax Rates", Zoocasa.com lists information for 35 cities, and shows that Thunder Bay's rate of about 1.6 per cent is the second highest, exceeded only by Windsor.
The five lowest rates, all of which are below 0.7 per cent, are in Greater Toronto Area municipalities.
According to Zoocasa, a house assessed at $250,000 would generate actual tax revenue of $3,996 in Thunder Bay, $4,473 in Windsor, and $1,537 in Toronto.
Of the five cities with the highest residential property tax rates, four are in northern Ontario.
Homes assessed at $250,000 in Sault Ste. Marie, North Bay and Sudbury will generate tax ranging from $3,823 to $3,655.
In an interview with Tbnewswatch, Gale said "I certainly don't dispute the facts and numbers in the report, but it paints an incomplete picture."
The city manager said what's most important to property-owners is the amount of tax they actually pay.
"We adjust the property rate every year so that it compensates for increased property values...the tax rate is only half the equation. It's multiplied against the property value." Gale said.
Zoocasa.com states that cities with the highest tax rates—such as Windsor and Thunder Bay—have average home prices well below cities with the lowest tax rates.
Acknowledging that, Gale said "taxes on the same house aren't that different between Thunder Bay and Toronto. The same house in Toronto pays a higher taxation."
BMA Management Consulting's 2018 Ontario Municipal Study reported the tax rates of 33 areas with populations greater than 100,000.
Gale said BMA found that, for an average detached bungalow, "Thunder Bay is smack in the middle for the amount of tax that's paid on that house."
He said it's appropriate to make city-to-city comparisons involving communities with more than 100,000 people because they provide similar levels of services and similar amenities.
