We get it, no-one loves paying taxes, but we accept that in order to have our streets plowed and our parks functioning it is a necessary evil. However, there are those in the community that carry a heavier burden when it comes to taxes and they are our local industrial and commercial businesses.
The analysis below shows that a typical commercial property pays 2.26 times as much taxes as a property that is classified as a single-family home and a property classified as industrial pays 2.6 times as much taxes as a property that is classified as a single-family home.
So not only are these businesses providing valuable jobs and services to the community, but they are covering a much higher percentage of the taxes than an equivalently valued residential property.
The municipal government has a dollar amount that they decide is required to run the city. The tax rates are set-up to achieve this amount. The more commercial and industrial businesses there are the lower the rates are for residential taxpayers.
If this important sector is not being supported, both by individuals and the various levels of government, businesses leave and new businesses do not see the benefits of setting-up shop. If left vacant long enough these businesses will eventually be torn down leaving only a much more minimal tax rate being paid and no new tax base being created to cover the lost taxes.
What does it all mean? The long-term effect of a shrinking commercial and industrial tax base is that local residents have to make up for the loss of revenue to the city, and this means residential taxes would go up.
Another great reason to shop locally.
Presented by Scanlon & Associates, Real Estate Appraisers, Orillia.
We have been providing highly detailed and reliable analysis of the real estate market in Orillia and the surrounding areas since 1980.
Wayne Scanlon, CRA
Meegan Scanlon, Candidate
Members of the Appraisal Institute of Canada