Development Sites: Is The Additional School Tax Applicable?

The municipalities may have made An error in charging the extra school tax to developers.
The School Tax Act states that an owner of “dwelling property” must, for a taxation year, pay school tax in addition to regular school tax as follows:

  • The tax rate will increase by 2 on values between $3-$4M
  • The tax rate will increase by 4 on values over $4M

“Dwelling Property” means the following class 1 property (as per clause 117.1 of the School Act):

  • Land that is outside the agricultural land reserve and that is determined by the assessor to have no present use.
  • Land and improvements on the land, if:
    • Any of the improvements are used or intended to be used as a residence for 3 or fewer families

The question under debate is the definition of “no present use.” Our contention is that a property bought by a developer or potentially by an entity that proposes to develop, has use.

If you have any development sites worth more than $3,000,000, please send your assessment notices to me and we will launch an appeal, or call Peter Austin at 604-733-3282.