Homeowners still carrying Hamilton's biggest tax burden

For years, we've been hearing about record-breaking building permit numbers, and companies such as Canada Bread and Maple Leaf Foods settling in Hamilton.

But again this year, Hamilton homeowners are still shouldering the lion's share of the tax bill.

Hamilton politicians talk about the dire need to build the city's industrial and commercial tax base to take the heat off homeowners. For the last three years, the city has issued more than $1 billion in building permits.

We need more commercial and industrial assessment. We've been saying that for ages.- Coun. Lloyd Ferguson

But a new city report shows that family homes still account for 87 per cent of the city's assessment — or about 77 per cent of the tax bill. That's lower than 22 other comparable cities.

In cities from Guelph to Sudbury, industries and business account for an average of 17 per cent of the tax base. In Hamilton, it's only 13 per cent.

That means Hamilton homeowners are vulnerable to every little bump in the tax bill, said Coun. Lloyd Ferguson of Ward 12 in Ancaster.

"It's huge," he said of the impact on homeowners.

"We need more commercial and industrial assessment. We've been saying that for ages."

The city has tried to change this. Some of those efforts are still coming to fruition, said finance head Mike Zegarac. That includes the new airport employment growth district, a large urban boundary expansion where the city will invite industry to build on green space.

But developers are building houses just as fast, Zegarac said. So that balance will likely be around for a while.

"We're still forecasting stronger residential growth than non-residential growth."

The imbalance is OK in cities with higher household incomes, Zegarac said. "If you have the ability to pay, it doesn't represent a risk."

But in cities such as Hamilton, he said, it makes it harder for people to work and live here.

Coun. Brenda Johnson sees the impact on homeowners in Ward 11. The city is working hard to attract industry, she said, so that's not the problem.

"I'm hopeful we'll see that number change," she said. "I don't have a crystal ball, but I'm hopeful."

Zegarac presented the figures at an audit, finance and administration committee meeting at city hall on Monday.

The report showed that Hamilton residential taxes on a detached bungalow are nine per cent higher, on average, than the comparator municipalities. That's about the same as 2013.

Here are some other highlights:

• In 2014, the average home assessed at $289,000 paid $3,747 per year in taxes.
• Homeowners spent about 4.4 per cent of their household income on property taxes, compared to the average of four per cent in the comparator cities.
• Hamilton's commercial taxes on an office building were about 19 per cent below the average.
• Industrial taxes for large industry were about 23 per cent below average.
• Commercial taxes for a neighbourhood shopping centre were 25 per cent above average. 
• Homes accounted for 87.1 per cent of Hamilton's assessment in 2014. In 2013, it was 86.7 per cent. The number has stayed relatively the same since 2001.