From Aurora to Zorra Reporting Property Tax Information in the Financial Information Return Association of Municipal Tax Collectors of Ontario Spring Training Seminar April 18-20, 2004 Ministry of Municipal Affairs and Housing FIR Background The Financial Information Return (FIR) is the main data collection document used by MAH to collect financial information from municipalities on an annual basis. All municipalities are required to submit financial data to the Ministry by May 31st each year as outlined in Subsection 294(1) of the Municipal Act and Clause 3(b) of the Municipal Affairs Act. The FIR provides a method of capturing Standard and Consistent financial and statistical information. Unlike the Financial Statements, this allows comparisons of municipalities over time. The information is used by MMAH and other ministries for developing programs and policy. The information is also used by municipalities, municipal associations, the financial community, the academic community, the Ontario Municipal Board, ratepayer groups, libraries and consulting firms. FIR Background Since 2001, The FIR has been built using a Microsoft Excel Spreadsheet which is available for all Municipalities to download from the FIR Website: http://csconramp.mah.gov.on.ca/fir/Welcome.htm Recently, the Ministry added VIEW FIR pages - Currently FIR2001 and FIR2002 files as submitted by Municipalities are available for viewing/downloading. Similarly, FIR2003 files as submitted to the Ministry will be posted on the VIEW FIR2003 webpage Submitted Municipal Performance Measurement Program schedules are NOT currently posted. FIR Background To assist with completing the FIR, Instructional documents, such as the FIR Start-Up Guide, FIR Content Changes, Background FIR Tables, Instructions by Schedule, etc. are available at the FIR Website. Municipalities complete their FIR and email it to the Ministry at: FIR@mah.gov.on.ca Municipalities are also encouraged to use this FIR email address to contact Ministry representatives with any Questions, Concerns or Comments. FIR Functionality As municipalities complete their FIR, a number of processes automatically occur: Automatic calculations All totals and subtotals automatically add as information is entered. Taxes automatically calculated from assessment x tax rates. Carry-forwards In the FIR, there are instances where amounts in one part of the FIR are needed in another part as well. To avoid re-entering the same number in different places and to minimize mistakes, data is automatically carried-forward from one part to another. As information is entered, numbers are automatically “carried-forward” into the appropriate places elsewhere in the FIR. Where carry-forwards occur, they are identified, by showing the SLC number where an amount is carried-forward from, in the line description. Checks To minimize errors and allow municipalities to correct any misreporting before submitting their fir’s, a number of “checks” have been built into the FIR which will flag errors as data is entered. FIR Basics The FIR and the Funds FIR Organization The FIR is organized using a series of numbered “Schedules” which collect different types of information. FIR and Property Tax - Background Since the introduction of the FIR in 1977, the FIR had remained virtually unchanged. Reform of the Property Assessment and Taxation system in 1998 were cause for changes to the FIR. A new Property Tax System meant new Property Tax Scenarios for all Municipalities in the Province. Different options available to Municipalities included, Introduction of many Property Tax Classes New Rules, Restrictions, Limitations Introduction of Tax Mitigation Options Optional Classes Tax Banding Phase-Ins Rebates Capping Challenges Collecting Property Tax information in the FIR involved a number of challenges when Developing the FIR Schedules, Different Property Tax scenarios in Municipalities Schedules must be flexible to allow all Municipalities to report their unique Property Tax Scenario. Schedules must also capture each Municipalities Property Tax information in a Consistent way. Different Types of Municipalities (Single or Lower/Upper-Tier ) Capture useful information in a meaningful way Schedules should capture important elements of the Property Tax scenario for each Municipality. Schedules must be Organized in a useful way. Allow for reporting of complex Property Tax Scenarios as simple and understandable as possible. Schedules - Layout To accommodate possible Tax Scenarios, FIR Schedules are built with a Tax Table for each set of Tax Rates applicable. Municipalities identify each set of Tax Rates as: General Purpose Levy (GPL) - Usually one, Custom FIR if many Special Area Rates (SAR) - By Type Lower-Tier or Single-Tier Upper-Tier Tax Tables capture Assessment x Rate driven Tax amounts Supplementary Taxes, and Other Tax amounts (not derived from Assessment x Rate) are also captured to arrive at a Total Taxes Levied, PIL Levied. Automatic Summary of Taxes and PILS on S26, allows for reporting Distribution of Education Taxes by School Board Adjustments to Taxation kept separate on S72 All Tax, PIL and Adjustments automatically calculate Entitlement of School Boards amount (on S72) Schedules - Quick Overview S20 - General Tax Information S22 - Taxable Property Detail S24 - PIL Property Detail S26 Summary of S22 Tax, Distribution of Education Tax Summary of S24 PIL PIL By Source, Distribution of Education PIL S28 - Upper-Tier Summary of all Lower-Tiers S72 Adjustments to Taxation Continuity of Taxes Receivable Entitlement of School Boards FIR Schedules Schedule 20 ~ Taxation Information Optional Property Classes in Effect Municipalities have the option of implementing ‘optional property classes’ within the commercial, and industrial property classes. Part 1 identifies which optional property classes have been implemented in the municipality (Parking Lot, Office Building, Shopping Centre, Large Industrial). New Multi-Residential was added to this list in FIR2003. Ex. Zorra Tp has opted to implement the Large Industrial class FIR Schedules Schedule 20 ~ Taxation Information 5% Capping Limit Program Municipalities limited assessment reform related property tax increases for Commercial, Industrial, and Multi-residential property classes to 10% in 1998, a further 5% in 1999, and a further 5% in 2000. For 2001 and onwards, the 5% Capping Limit Program was continued by limiting assessment reform related property tax increases by a further 5% in 2001, and an additional 5% each year thereafter (Bill 140) In column 2, the Municipality indicates whether the cost of protection is all or partly funded by the municipality (Y), or Totally funded by minimizing the property tax decreases (N) FIR Schedules Schedule 20 ~ Taxation Information Graduated Taxation (Tax Bands) Municipalities have the option of applying lower tax rates to lower-valued Commercial and Industrial properties. Municipalities accomplish this by creating 2 or 3 Tax Bands of assessed value (CVA) to which different tax rates are applied. FIR Schedules Schedule 20 ~ Taxation Information Graduated Taxation (Tax Bands) Similarly, Municipalities have the option of applying 3 Tax Bands. The Diagram below shows 3 Tax Bands with a Low band rate of 3%, a Middle band rate of 4%, a High band rate of 5%, and CVA thresholds or boundaries of $500,000 and $800,000. FIR Schedules Schedule 20 ~ Taxation Information Phase-In Programs Municipalities have the option of phasing-in property tax increases and decreases resulting from Province-wide Reassessment. In property classes where a phase-in is in effect, the year the phase-in was initiated and the term of the phase-in are reported in S20 of the FIR. Below is an example of a Commercial and Industrial Phase-In that was initiated in 2001 and lasts for a duration of 5 years. Note: The Year Phase-In initiated should coincide with a reassessment year (1998, 2001, 2003 . . .). FIR Schedules Schedule 20 ~ Taxation Information Rebates for Eligible Charities Refers to the rebate percentage for eligible charities set by the municipality under Section 361 of the new Municipal Act, 2001. Rebate programs must provide rebates of at least 40% of the property tax paid by eligible charities occupying property in the Commercial or Industrial property classes. Municipalities have the option to increase the rebate to a maximum of 100%, expand the rebate to other property classes, and apply the rebate to other organizations that are similar to charities. Below is how a 40% rebate would appear on S20 of the FIR. FIR Schedules Schedule 20 ~ Taxation Information Property Tax Due Dates This part applies to Lower-Tier and Single-Tier municipalities only. Interim and Final property tax billings are reported showing the number of installments and due dates for the first and last installment. On S20, several property classes are shown since Tax Due Dates may vary between property classes. Below is a sample of due dates and installments for Aurora T: FIR Schedules Schedule 22 ~ Municipal and School Board Taxation This schedule collects information on taxable properties within the municipality. It is a line by line report showing: Assessment for each property class in the municipality Tax rates applicable to each class Taxation generated from each class Other Taxation not derived from Assessment x Tax Rate All municipalities complete this schedule, however, Upper-Tiers report only Upper-Tier tax rates that apply to the aggregated assessment of all Lower-Tiers (ie. Upper-Tiers do not enter Lower-Tier and Education tax rates). Taxation information in this schedule is organized in Tables by: General Purpose Levy (GPL) Special Area Levies for Lower-Tier/Single-Tier Purposes (SAR-LT) Special Area Levies for Upper-Tier Purposes (SAR-UT) Adjustments to Taxation (Hydro Properties) Supplementary Taxes Amounts Added to Tax Bills Other Taxation Amounts FIR Schedules Schedule 22 ~ Municipal and School Board Taxation First, the General Purpose Levy (GPL) is reported (Only one Table is shown, contact MAH to add others). Special Area Rates struck by the Single/Lower/Upper-Tier will be entered in separate Tables later . . . FIR Schedules Schedule 22 ~ Municipal and School Board Taxation The Municipality Name with Code “0” is shown representing only one GPL exists in this Municipality. Municipalities with Multiple sets of GPL Tax Rates, a custom FIR can be set-up with more Tables. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation The GPL applies to every property in the Municipality, thus every property class is shown in this Table. A LIST of all Taxable property classes is available to report in Column 1, RTC / RTQ. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Municipalities who opted for Tax Bands, Column 2 allows reporting of 2 Bands (L, H) or 3 Bands (L,M,H) “0” represents no banding for the class FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Columns 3 and 4 automatically display the Property Class Descriptions based on information in Column 1 Notice that each property class (RTC/RTQ/Tax Band combination) can only be shown once on each table. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation The Tax Ratio which defines the relationship between Tax Rates of each class in relation to “RT” are shown for every class in Column 5. By definition the Tax Ratio for R = 1.0000 and F,T = 0.2500. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation The Percent of Full Rate information relates to Discounted Tax Rates, and Tax Banding of the tax rates. Vacant Commercial and Industrial are usually discounted to 70%, 65% of the Full Rate (No disc = 100%). FIR Schedules Schedule 22 ~ Municipal and School Board Taxation “RT”, representing the “Residential-Full Occupied” class always appears in the first Line of the table. Also fixed by definition on this RT Line are the Tax Ratio = 1.0000 and Percent of Full Rate = 100% FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Total Current Value Assessment (CVA) associated with each property class is reported in this Column. For Upper-Tiers, this column contains the sum of taxable assessments in all of the Lower-Tier municipalities FIR Schedules Schedule 22 ~ Municipal and School Board Taxation All General Purpose Tax Rates applied for LT/ST, UT, and Educ. are in Col. 8 to 11 (Percent 6 Dec. places) Notice the fixed Education Rates for Residential (0.373%) and Farmland, Managed Forest (0.09325%) FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Columns 12 to 15 automatically display the Taxes Levied for Municipal, and Education purposes Taxes Levied are derived from (Taxes = Assessment x Tax Rate) data entered in previous columns FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Assessment and Taxation columns are Subtotalled at the bottom of each Table. A GPL Grand Total is automatically Totalled at the top (Municipalities with Multiples sets of GPL Tax Rates) FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Every Tax Rate conforms to the relationship: Any Rate = RT Rate x Tax Ratio x Percent of Full Rate For Example, CU Rate = 0.365720% x 1.9018 x 70% = 0.486868% FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Weighted and Discounted CVA is derived from: Tax Ratio x Percent of Full Rate x Assessment Ex. Weighted and Discounted Asmt. for IU = 2.8219 x 65% x 701,980 = 1,287,596 (Sum on S26) FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Hydro properties represented by RTQ’s H, J, K (Taxable, Shared as if PIL) - Tax Rates, Assessment shown Since Education taxes from C&I Hydro properties is retained by the Mun., a $22,991 adjustment is needed. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation S22 also contains Tables for reporting Special Area Levies that are separately identified in a Municipality’s tax rate By-law. Special Area Levies are described as: Levy applies to a unique area within the Municipality (not usually the entire municipality), and; Levy usually of a specific Type, separate from the General Purpose (for example, Fire or Transit). Part 2 contains all Lower-tier or Single-tier special area tax rates by property class. Upper-Tier municipalities should not enter any information in this Part. Lower-Tier and Single-Tier municipalities complete this section when necessary, ie. Special Area Tax Rates for Lower-Tier/Single-Tier purpose apply within the municipality. Notice that only the Lower-Tier/Single-Tier Tax Rate and Tax columns are available. In Zorra Tp, notice that no Lower-Tier Special Area Rates apply. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Part 3 contains all Upper-Tier special area tax rates by property class. Lower-Tier and Upper-Tier municipalities complete this section when necessary, ie. Special Area Tax Rates for Upper-Tier purpose apply within the municipality. Notice that only the Upper-Tier Tax Rate and Tax columns are available. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation A LIST of Levy Types is available to allow municipalities to identify each Special Area Rate (Refer to the FIR2003 Tables file for a complete list of Levy Types available to select). In Zorra Tp, notice that a “Library” Special Area Rate is reported as struck by Oxford Co. Many different sets of Special Area Rates can be reported, and automatically Total. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Part 4 contains Adjustments for Hydro Properties represented by RTQ = H, J, K that are “Taxable, yet shared as if Payment-In-Lieu”. No other adjustments should be included on this Line (Other Adjustments occur on S72). As mentioned in the note on Part 1, since Education taxes from Commercial and Industrial Hydro properties are retained by the Municipality, a $22,991 adjustment is needed. To accomplish this, Municipalities use line 7010 to report the negative adjustment to Education Taxes in column 14, and the positive adjustment to the Municipal Taxes in column 12 (13). This will result in the Total of line 7010 in column 15 equalling 0. As shown below for Zorra Tp, Line 7010 is used to “shift” $22,991 of Education taxes to the Municipal column, balancing the columns for Municipal and Education Taxes. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation Part 7 contains amounts added to tax bills which are NOT derived by assessment x tax rate. Examples are Rates per Acre, Rates per Amount of Frontage, Flat rates, Usage Rates, etc. FIR Schedules Schedule 22 ~ Municipal and School Board Taxation And Lastly, we arrive at the Total Amount Levied in Part 9. The amount shown here is automatically calculated by adding the previous Total Levied by Tax Rate with the 2 subtotals for Amounts added to Tax Bills and Other Taxation amounts (Parts 6, 7, 8). The example below shows that Zorra Tp levied $2.5M for themselves, $3.5M for Oxford Co, and $3.9M for Education (School Boards). Remember, these amounts include Supplementary Taxes, however any Adjustments to Taxation are reported on S72. FIR Schedules Schedule 24 ~ Payments-In-Lieu of Taxation This schedule is very similar to Schedule 22, with the exception that it collects information on Payment-In-Lieu properties only. Similar to S22, this Schedule is a Line by Line report showing: Assessment for each property class in the municipality Tax rates applicable to each class Payment-In-Lieu amounts Levied against each class Other OIL amounts not derived from Assessment x Tax Rate All municipalities complete this schedule, however, Upper-Tiers report only Upper-Tier tax rates that apply to the aggregated assessment of all Lower-Tiers (ie. Upper-Tiers do not enter Lower-Tier and Education tax rates). Payment-In-Lieu information in this schedule is in Tables by: General Purpose PILS Special Area PILS for Lower-Tier/Single-Tier Purposes Special Area PILS for Upper-Tier Purposes Supplementary PILS Amounts Added to PILS Other PIL Amounts FIR Schedules Schedule 24 ~ Payments-In-Lieu of Taxation In completing S24, notice that only “PILS Levied” are reported: The amount of PIL “Levied” on a property, is not necessarily the amount received by the municipality. Occasionally, PIL amounts for Education purposes are retained by the Municipality. Both of these unique situations are captured in Part 3 of Schedule 26, where the final PIL amount retained by the Municipality and PIL amounts distributed to School Boards are reported. FIR Schedules Schedule 24 ~ Payments-In-Lieu of Taxation Apart from showing only the PIL classes, Schedule 24 has the following differences with Schedule 22, Adjustment Line for Hydro Properties is not available (Hydro properties on S22 only) Other PIL amounts for Railway R-O-W (and Utility Corridors) are split into 2 Lines, Amounts for Properties classed as “Taxable” are shown on S22 Amounts for Properties classed as “PIL” are shown on S24, Line 8045 (8050). However, in some instances, municipalities receive an amount as compensation from the Province (for the loss of revenue resulting from the phase-in of Rates for these properties). This amount is shown on S24, Line 8046 (8055). FIR Schedules Schedule 24 ~ Payments-In-Lieu of Taxation Also, Schedule 24 has the following differences with Schedule 22, Institutional Payments (Heads and Beds) Amounts in respect of Post Secondary Institutions (Universities and Colleges), Correctional Institutions, Public Hospitals, Facilities for the Developmentally Disabled, Provincial Education Institutions, Non-profit hospital service corporation, etc. FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary On this Schedule, Municipal and Education Tax and PIL amounts are automatically calculated and summarized from the information entered on Schedules 22 and 24. However, this Schedule is used mainly for displaying the final distribution of Education Taxes and Education PIL amounts by School Board. Since Taxation and PIL are treated differently, the schedule has been divided into the following 3 sections: Municipal and School Board Taxation Contains a summary of S22 (Taxable properties within the municipality) Also, provides a breakdown of Education taxes by School Board. Payments-In-Lieu of Taxation Contains a summary of S24 (Payment-in-lieu amounts Levied in the municipality). REMEMBER: PIL amounts shown on Schedule 24 are not necessarily the full amount received by the municipality and not necessarily the amount shared with the school boards. Adjustments for both of these situations occur in the next section to arrive at the final PIL amount for municipal and education purposes. Payments-In-Lieu of Taxation - Distribution of Entitlements Shows PIL amounts by Source of the PIL Shows Adjustments for PILs not received, which is used to derive the final PIL received by the Municipality (Municipal and Education purposes). Lastly, Education amounts given to School Boards are shown by Board. FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary Part 1 begins with a line for Legislated Percentage of Education Taxes distributed to each School Board (Commercial, Industrial, Pipelines). Data is Pre-Loaded (from MOE). FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary Municipal and Education Property Taxes are summarized by Class in this Section. Amounts are automatically generated from Tax information that was entered on S22. Taxable Assessment, Municipal and Education Taxes are organized into Property Class Groups (Ex. Commercial includes occupied and vacant classes). Information on how classes are aggregated is shown in the FIR2003 Tables file Taxable Assessment along with a Weighted and Discounted Assessment are automatically derived from S22 (Tax Ratio x Percent of Full Rate x Assessment). FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary Education Tax amounts are shown distributed by School Board. Education amounts from Residential, Multi-Residential, Farmland, Managed Forests, and Other property classes are entered by the Municipality. Total Taxes for each School Board shown here are then used as part of the Total school board entitlement calculation shown on S72. FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary Municipal and Education PIL amounts are summarized by Class in this Section. Amounts are automatically generated from PIL information entered on S24. As in Part 1, PIL Assessments, Municipal and Education PILS are organized into Property Class Groups (Ex. Commercial includes occupied and vacant classes). Notice that this Section displays the PILS Levied, which is not necessarily the amount received by the municipality. Also, in some cases the PIL amounts received for Education purposes are retained by the Municipality. FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary Section 3 shows PILS Levied by Source, then Adjustments for PIL amounts not received, which derives the Final PIL Entitlement (Municipal and Education). First, notice that Sources of PILS are organized by, Canada, Canada Enterprises Ontario, Ontario Enterprises (Items Carried-Forward from S24 – Heads&Beds, ROW) Municipal Enterprises Other Municipal Entities, Other Enterprises, Other Amounts (Carried-Forward from S24) FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary Next, columns in this part begin with PILS Levied, which coincide with amounts in Section 2 (which were automatically calculated from information on S24). FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary Following across the Schedule, Column 6 accounts for any Adjustments to the PILS Levied (where the Municipality does not receive the full amount of the PIL). The difference between PILS Levied and Adjustments results in the Final PIL Entitlement (After Adjustments). This amount is shown by LT/ST, UT and Education. FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary The Final PIL Entitlement (After Adjustments) is shown by Lower-Tier, Single-Tier, Upper-Tier and Education. Where Education amounts are retained by the Municipality, the amount is reported in Columns 8 (or 9) as opposed to 10 (Effectively shifting Education to Municipal Totals). FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary The Final PIL Entitlement (After Adjustments) columns now show the PIL amounts retained by the Municipality and passed onto School Boards. For Lower-Tier and Single-Tier Municipalities, the Total Municipal PIL Entitlement in Column 8 (SLC 26 9599 08) is Carried-Forward to S10, Revenue Fund Revenues. FIR Schedules Schedule 26 ~ Taxation and Payments-In-Lieu Summary The final columns of this section allow for reporting the Education PIL Entitlements (After Adjustments) by School Board. FIR Schedules Schedule 28 ~ Upper-Tier Entitlements Only Upper-Tier municipalities show information on this schedule. In a two-tier system, the Lower-Tier collects taxes on behalf of the Upper-Tier. In this Schedule, Upper-Tiers show amounts which have been collected by each of the Lower-Tiers for Upper-Tier purposes. S28 for Durham R is shown below. Names of all LT Municipalities in the UT are Pre-Loaded. FIR Schedules Schedule 28 ~ Upper-Tier Entitlements For each Lower-Tier municipality, the Taxation amounts are shown similar to S22 as, General Purpose Levy Special Area Levies - Upper-Tier Supplementary Taxes Amounts Added to Tax Bills, and Other Tax Amounts For each Lower-Tier municipality, the total Payment-In-Lieu amounts are shown (Column 8). The Total of each column is on Line 0299, representing the Upper-Tier total. FIR Schedules Schedule 28 ~ Upper-Tier Entitlements Adjustments to Upper-Tier Taxes are also shown by Lower-Tier, Surplus or Deficit of taxation for Upper-Tier purposes resulting from the 5% Capping Limit program. Upper-Tier Tax Adjustments applied to Taxation LESS Upper-Tier Tax Adjustments Recovered from Allowances S28 for Durham R shows a balanced 5% Capping Limit Program ($0 Balance) in Column 9. Also, a $2.1M UT Tax Adjustment, with $1.1M attributed to Oshawa C is shown in Col. 10. FIR Schedules Schedule 28 ~ Upper-Tier Entitlements For each Lower-Tier municipality, the total Upper-Tier Entitlement is in Column 12. The Total of Column 12 on Line 0299 is the total Upper-Tier entitlement. For Upper-Tier Municipalities, this amount is automatically carried-forward to S10, Revenue Fund Revenues in the following 2 parts, Taxes (Column 12 - Column 8) SLC 28 0299 12 - 28 0299 08 PIL Amounts (Column 8) SLC 28 0299 08 Durham R has $279M in Taxes and $7.0M in PILS carried-forward to S10 (Total = $286M) FIR Schedules Schedule 72 ~ Continuity of Taxes Receivable This schedule contains information on Taxes Receivable, Continuity of Taxes Receivable Cash collections This schedule contains information on Adjustments to Taxation, Tax Adjustments applied to taxation Tax Adjustments not applied to taxation Additional information contained in this Schedule includes, Entitlement of School Boards (Calculation) This schedule is completed by Single-Tier and Lower-Tier municipalities only. In a two-tier system, the Upper-Tier does not complete this schedule even though it sets an Upper-Tier tax rate because taxes are collected by Lower-Tier municipalities. FIR Schedules Schedule 72 ~ Continuity of Taxes Receivable First, lets examine page 2 of this schedule, Tax Adjustments Applied to Taxation. Adjustments reported in this section reduce Tax Revenue. Columns show Tax Adjustments recoverable from School Boards, the Lower-Tier/Single-Tier municipality, and the Upper-Tier municipality A Total of these Columns is automatically shown as Total Tax Adjustment. FIR Schedules Schedule 72 ~ Continuity of Taxes Receivable Several types of Tax Adjustments which reduce tax revenue are shown on the Schedule. For example, Section 442 (Municipal Act, now 357), Rebates to Eligible Charities, Vacant Unit Rebates, Tax Cancellation for Low income Seniors and Disabled Persons, etc. Below, Zorra Tp has shown Tax Adjustments of $181,000 under the Municipal Act. FIR Schedules Schedule 72 ~ Continuity of Taxes Receivable All Tax Adjustments are Totalled on Line 2899. As indicated earlier, Adjustments in this part are automatically deducted from Tax Revenues on S10. Specifically, the Total in Column 7 is deducted from Tax Revenue on S10. Below, Zorra Tp has shown their LT Share of the Tax Adjustments as $37,000. It is this amount that is deducted on S10 to arrive at the Own Purpose Tax amount. FIR Schedules Schedule 72 ~ Continuity of Taxes Receivable Next on page 2, the Tax Adjustments not applied to taxation are shown. Tax Adjustments in this section do not reduce Tax Revenue for the current year (ie. They are not deducted from Own Purpose Taxes on S10). Columns here are the same as the previous section - School Boards, Lower-Tier/Single-Tier municipality, and Upper-Tier municipality with a Total. Examples include Tax Deferrals, impacts of Capping Program (Reported, recognizing that "taxation revenue" is to be recorded at full CVA tax responsibility as if capping did not apply). FIR Schedules Schedule 72 ~ Continuity of Taxes Receivable Returning to Page 1 of this Schedule, a Continuity of Taxes Receivable section is followed by a section for Cash Collections. Cash collections consist of, Collection of current year taxes Collection of outstanding taxes from Previous and Prior years Penalties and Interest Amounts added to Tax Bills for Collection Purposes Only Other FIR S72 ~ Continuity of Taxes Receivable Finally, Continuity of Taxes Receivable ties everything together, Taxes receivable, end of year (Line 0290) equals: Taxes Receivable, beginning of year (Previous Year Closing Balance – Pre-Loaded) PLUS: Amounts added to tax bills for collection purposes only (Enter) PLUS: Tax amounts levied in the year (Carry-Forward from S26) PLUS: Current year penalties and interest (Enter) LESS: Total cash collections (Carry Forward from S72) LESS: Tax adjustments before allowances (Carry-Forward from S72) LESS: Tax adjustments not applied to taxation (Carry-Forward from S72) PLUS: Other (Enter) FIR S72 ~ Continuity of Taxes Receivable For Zorra Tp, Taxes Receivable, beginning of year ($495,000 Pre-Loaded Previous Year) PLUS: Amounts added to tax bills for collection purposes only ($291,000 Entered) PLUS: Tax amounts levied in the year ($10M Carry-Forward from S26) PLUS: Current year penalties and interest (Entered $70,000) LESS: Total cash collections ($10M Carry Forward from S72) LESS: Tax adjustments before allowances ($181,000 Carry-Forward from S72) LESS: Tax adjustments not applied to taxation ($239,000 Carry-Forward from S72) Taxes receivable, end of year equals: $446,000 Flow of the FIR Summary of Taxation (S22) and PIL (S24) on S26 Pre-loaded Legislated Percentage of Education Taxes to School Boards Revenue Fund Revenues Own Purpose Tax amount automatically carried-forward from S26 (UT from S28) Adjustments to Taxation automatically carried-forward from S72 (UT from S28) Own Purpose PIL amount automatically carried-forward from S26 (UT from S28). Flow of the FIR Continuity of Taxes Receivable Pre-Loaded Opening Balance (and CHECK with Previous Year) Tax Amounts Levied in the Year carried-forward from S26 Cash Collections carried-forward from Part of S72 Tax adjustments carried-forward from Part of S72 RESULT = Taxes Receivable, End of Year Financial Position (Balance Sheet) CHECK: Taxes Receivable on S72 match Taxes Receivable, Assets on S70 Contacts Thanks to Municipalities for your continued efforts in ensuring reliable and accurate information is submitted in the FIR each year Municipal Performance and Accountability Branch – Financial Analysis and Reporting Section Debbie Chen-Yin - Manager Colin Graham - Senior Economist Bill Tumasz - Senior Economist Wendy Citrigno - Economist FIR Reporting Team Jim Simos - Financial Information Co-ordinator Ron Ziembicki - Financial Officer Romeo Bacchus - Financial Officer Raymond Kanaan - Financial Officer FIR Website: http://csconramp.mah.gov.on.ca/fir/Welcome.htm FIR Contact: FIR@mah.gov.on.ca