Hamilton’s final tax assessment growth for 2021 is 1.2 percent, which represents approximately $11.1-million in revenue for the City of Hamilton.
Residential growth accounted for 0.7 percent and non-residential 0.4 percent, which is a better split than in most years.
The decrease in residential assessment growth, which had been over 1.0 percent in recent years, is attributed to a decrease in construction completions due to the COVID pandemic.
The non-residential growth is despite tax assessment appeals.
City staff are reporting non-residential assessment appeals resulted in “reduced assessment of over $85 M, including approximately $23 M from 30 properties owned by ArcelorMittal Dofasco, which represent a revenue loss of approximately $1.8 M.”
Industrial assessment decreased in every ward with industrial properties except Wards 6, 9, and 15.
Industrial assessment growth in Flamborough, primarily the new L3 Harris Wescam facility, accounts almost entirely for city-wide industrial assessment growth.
Ward 15’s industrial assessment grew by $79,466,800, Ward 6 by $7,320,200, and Ward 9 was nearly unchanged with an increase of $64,700. The rest of the City lost $25,250,100 in assessment.
Most of the growth in residential assessment is from greenfield development.
The impact of intensification within the existing urban boundary is illustrated well by one development.
The Marquee apartments at 20 George Street is assessed at $67.7-million, which generates $818,000 in new tax revenue for the City of Hamilton.
The entire 0.7 percent in residential growth (which includes the Marquee) amounts to $7.56-million in new tax revenue.
The City report states staff “settled” a number of commercial assessment appeals during 2021.
East Hamilton’s Ward 4’s total tax assessment decreased in 2021 due to commercial tax appeals. Commercial assessment decreased by $27,767,800 and industrial assessment decreased by $1,925,800 in the Ward.
While residential assessment increased by $14,738,600, the overall decrease in assessment in Ward 4 was $10,631,000
City staff are expecting strong assessment growth in 2022 as construction activity increased during 2021 and COVID-related construction supply shortages have alleviated.
Council will debate the report during their Friday budget meeting, which is scheduled to begin at 9:30 am and will be streamed on the City’s YouTube page.