The Capping / Clawback program is a requirement of the provincial government. It is intended for Commercial, Industrial, and Multi-Residential Properties only. The objective of the program is to reduce the impacts of large increases in assessment by limiting property tax increases.
Over the past few years the Province mandated that tax increases on commercial, industrial, or multi-residential lands would be limited to no more than 5% of the previous year's taxes. This meant it could take several years for properties receiving capping protection to pay full taxes based on their Current Value Assessment.
Starting in the 2005 tax year, the provincial government provided municipalities with more options:
- They allowed municipalities to set the cap limit between 5% and 10%
- They allowed municipalities to set 'thresholds' of up to $250. If the application of other cap / clawback measures brought the property to within the threshold value, the taxes would automatically be set at the Current Value Assessment taxes.
- They allowed municipalities to implement a minimum annual increase up to 5% of CVA level taxes.
- Limits do not apply to municipal levy increases. Annual tax increases may exceed the capped percent limit.
- The province allows municipalities the option to exclude from the capping program, properties that have reached CVA tax in the prior year.
After a considerable amount of review and analysis Halton Region, in consultation with the area municipalities, recommended to Regional Council that the maximum factors be applied. The intent was to move the Commercial, Industrial, and Multi-Residential properties to pay CVA-based property taxes as quickly as possible.
Properties that received a cap or clawback in 2008 have been allocated 50% of the 2008 cap or clawback amount on the 2009 interim tax bill. Cap and clawback calculations and adjustments for 2009 will be shown on the 2009 final tax bill.