Area Rating

The following recommendation with respect to Area Rating was approved by Council at their meeting on April 27, 2011: 
a. That the following amendments to the current method of area rating, constituting an ”Urban/Rural” model of area rating, be approved: 
i. Elimination of Culture from area rating; 
ii. Area rating of Recreation based on the urban/rural model; 
iii. Continuation of Area Rating of Parkland purchases by former area municipality; 
iv. Area rating of Fire services based on an urban/rural model to align to the Fire primary response area; 
v. Continuation of area rating Sidewalk Snow Clearing within the transit area of Ward 12; 
vi. Area rating of Sidewalks and Street Lighting based on an urban/rural model to align to the service area; 
b. That the proposed urban/rural method of area rating, as identified in Recommendation (a), be phased-in over four years; 
c. That changes to the area rating of Transit be deferred until completion of an approved implementation plan for Transit service improvements in response to the recently completed IBI Study; 
d. That the tax shift variance be phased-in and reinvested into the former City of Hamilton to address its infrastructure deficit; 
e. That in preparation for the 2012 Capital budget, staff be directed to conduct a feasibility study to be completed in 2012 to provide assistance to the impacted rural area of Mount Hope and any other areas to ensure that these areas receive recreational and other services.

The following recommendation with respect to Area Rating was approved by Council at their meeting on March 23, 2022: 

(a) That the area rating of Sidewalk Snow Removal be eliminated in the 2023 tax year; 

(b) That the area rating of Sidewalks and Streetlighting be eliminated in a four-year phase-out period starting in the 2022 tax year; 

(c) That the area rating of Recreation be eliminated in a four-year phase-out period starting in the 2022 tax year; 

(d) That the area rating of Parkland Purchases be eliminated once the existing internal debt has been paid off;

(e) That staff be directed to report back with analysis, as well as, a public consultation plan on the impacts of adjusting the area rating of the Fire Service from the existing urban / rural model to one that aligns with the three levels of service (full time / volunteer / composite) for possible implementation in the 2023 tax year; 

Area rating is a municipal property taxation policy tool permitted by the Provincial government intended to account for either significant differences in service levels or the costs of providing services in different parts of the City.

The following services are area-rated in the City: transit, fire, sidewalks, street lighting, recreation, sidewalks snow removal, infrastructure levy and parkland purchases. The area rating of Sidewalk Snow Removal will be eliminated in the 2023; the area rating of Recreation, Sidewalks and Streetlighting will be eliminated in a four-year phase-out period starting in the 2022 tax year and the area rating of Parkland Purchases be eliminated once the existing internal debt has been paid off.

All areas within the City have area rated services. However, if a service is not provided in a specific area of the City, property owners in that area will not be taxed for that service. For example, properties in the rural areas of the City do not pay for Transit.

Property owners in the City of Hamilton pay the same rate for general city services such as public health and waste management. However, the tax rate of area-rated services varies depending on where you live, and the level of service offered by the City.

The City has an urban and rural model that aligns to the transit service area. Properties within the transit service area are considered urban, while properties outside the transit service area are considered rural.  Services included are Transit, Recreation, Sidewalks and, Streetlighting

The fire service has a different boundary but is still area rated based on an urban/rural model.

Parkland purchases, sidewalk snow removal, and infrastructure levy are area rated by former municipality

Yes. For example, Ottawa uses it for fire, transit and solid waste collection. Kitchener uses it for sidewalk snow removal. Kingston uses it for fire. Greater Sudbury uses it for fire and transportation.

The department responsible for the delivery of the area-rated services presents the budget of the particular service during the budget process. Area rating is a tax policy tool which is evaluated after the budget is approved and is presented to Council in the tax policy report.

As Service Delivery plans change over time, shifts in the taxation for properties can occur. The implications on area rating will be included in the reports presenting the service changes which are presented for Council approval and through the annual Tax Policy report.

Yes.  When there is a difference in service delivery or service levels, the City area-rates that particular service.