It is important to understand how municipal governments relate to the other orders of government in Canada the provincial and federal governments.
There are three types of government:
- the Government of Canada, or the federal government
- the Government of Ontario, or the provincial government
- Your Local Government, the municipal level of government which also includes related boards and commissions such as school boards, is the level of government responsible for most community affairs.
Each level of government is responsible for providing certain services and has the ability to raise money through specific types of taxation.
Municipal governments in Ontario spend billions each year to provide the public services that meet these important needs of Ontario residents.
Municipal governments raise most of the money for financing these services from the property taxes paid by residents and businesses in the local area. Additional funding comes from "user fees" or "non-tax revenue" from parking fines, for example, and some funding still comes from the provincial government.
For more on municipal government in Ontario, go to the AMO or the Ministry of Municipal Affairs and Housing.
Your municipal government collects property taxes from each property owner. Tenants pay a portion of their landlord's property taxes through their rent.
The taxes are calculated by multiplying the assessed value of a property by a tax rate. There are two parts to the tax rate:
- the municipal tax rate, which is set by your municipal government; and
- the education tax rate, which is set by the provincial government.
A municipality can set different tax rates for different classes of property, and the main classes include residential, multi-residential, commercial and industrial.
Source: Association of Municipalities of Ontario