Mayor's Report
Business taxes explained
By Marolyn Morrison

Last week, I did a breakdown as to where our residential taxes go. This week, I would like to share with you where our business taxes go. As you are aware, the assessed value of a property is set by MPAC.

Approximately, 21% of commercial property tax goes to the Region of Peel. This money is used to support the services that the Region provides. About 64% of commercial property tax goes to the province in support of our education system. The remainder - 15% - goes to the Town of Caledon to provide our Town services.

If your commercial property was assessed at $400,000 you would pay a total of $6,215 in property taxes, $1,476 of which would go the Town and the breakdown per department would be the following: Public Works & Engineering $569.74, Fire Protection & Prevention $264.12, Recreation & Property Services $163.84, Planning & Development $140.22, Library Board $109.23, Governance & Administration $60.48, Corporate Services $48.71, Building & Enforcement $47.24, Human Resources $42.81, and Economic Development & Communications $29.52.

Commercial property owners will receive from the Town a road to front on, snow plowing, sidewalks and storm sewers, fire protection, and sidewalks. From the Region of Peel, commercial property owners will receive sewer, water, police, and regional roads.

In 2006, the Town of Caledon levied almost $86 million in residential and commercial taxes. Of that, $31.5 million went to the Region of Peel; $31.5 million went to the province for education; and the Town used $23 million to provide our residents with the services that are required.

It may interest you to know that the Town is required by law to collect taxes for the Region of Peel and the Province of Ontario and to pay those levies first, even if we have not collected the money through taxation.

When comparing Caledon's tax rate with other similar municipalities (such as Orangeville, Brampton, Clarington, Halton Hills, King, Milton and New Market), Caledon is ranked the second lowest in municipal taxes levied in 2006. On the average assessed home ($361,000), a Caledon homeowner paid $1,026.72 to the Town last year in comparison to an Orangeville home that paid $2,494.05 to the Town of Orangeville.

When you look at the big picture of where your Canadian tax dollar goes, the federal government takes 60%, the provincial government takes 33% and the municipal government takes the remaining 7%.

As your mayor, I am committed to delivering you the services you require while ensuring fiscal responsibility and prudent judgment, for cost effectiveness.