Taxation Rate Cap for Class 2 Regulation

Looking for help on how you interpret the regulation for your municipality?

Does the GREATER of "$40 for each $1000 assessed value AND the 2.5 times the rate applicable to Class 6" become a range (i.e. between $40 and $135 ($54.13*2.5))? Or are they cumulative?

Thank you!

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Comments

  • Hello

    The way I understand the class 2 rate is a maximum of 40.000 per $1000 if your class 6 rate is below 16.000 per $1000.

    Example 1
    Class 6 rate = 14.5000
    Class 2 rate possibilities either 40.000 or 36.2500 (14.5000 x 2.5). In this case to maximize tax revenue the rate of 40.000 should be applied to class 2.

    Example 2
    Class 6 rate 16.5000
    Class 2 rate possibilities either 40.000 or 41.2500 (16.5000 x 2.5). In this case to maximize tax revenue the rate of 41.2500 should be applied to class 2. You can use 41.2500 for class 2 because it is the greater of 40.000 and 2.5 x class 6 rate.

    I hope this makes class 2 rates as clear as mud.

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