Commission on the Reform of Ontario's Public Services

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CHART 18.1 Property Tax Revenue, 2010
$ Billions
Source: Ontario Ministry of Finance.
Municipal
Property Tax,
$16.4B
Education
Property Tax,
$6.6B
The province has proven to be a good partner in sharing the property tax base. At the time of
Local Services Realignment in 1998, the province transferred $2.5 billion in residential tax
revenue to municipalities. By 2011, the value of the transferred residential education tax
revenue had grown to an estimated $3.1 billion as a result of non-reassessment-related
growth, such as new construction. In addition, the province has adopted a policy to fully offset
reassessment impacts when resetting residential and business education tax rates. This
practice of cutting education tax rates has been positive for municipalities, as it has offset the
impact of municipal tax increases on taxpayers and reduces pressure on municipalities to limit
tax increases. For more details on the provincial-municipal relationship, see Chapter 20,
Intergovernmental Relations.
Property Tax Trends
Since 2000, there has been significant growth in municipal property taxes, which have
increased 70 per cent. However, the growth in education tax revenues has been relatively flat,
averaging only one per cent per year. This occurred over a period when property values more
than doubled as a result of property reassessments.