This sector measures the fiscal contributions of commercial and residential real estate owned by Canadians. It also examines the real estate contributions of companies that generally serve businesses involved in international commerce.  Specifically, we calculated the assessed values and tax revenues generated by Canadian-owned businesses, non-Canadian border-related businesses, and Canadian residential property.  We also tallied the purchases of real estate by Canadians in 1998 and rental of commercial space by Canadian firms.  Finally, we calculated the increase in the county tax rate that would be required if sales taxes on Canadian purchases were lost. 

The comparison of 1996 and 1998 Canadian-owned commercial property indicates that total equalized assessed value increased by 37% and the total equalized taxable value increased by 15%.  Total property tax generated from Canadian-owned commercial property increased 33% from 1996 to 1998.  As components of this increase, school tax contributions rose more steeply than municipal taxes, closely paralleling the change in assessed value.  This is consistent with the fact that many commercial properties are partially or wholly exempt from municipal taxes due to local abatement agreements, but these same properties are often fully liable for school taxes.  On the whole, changes in school tax rates were mixed over the period, with some districts showing increases and others decreases.   Municipal tax rates seemed generally to be lower, with little change in the county tax rate.

 As noted in the table, figures for "total property tax generated" include Payments in Lieu of Taxes (PILOT) while the "equalized taxable value" figure does not include a taxable value for those parcels enrolled in PILOT agreements.  PILOT contributions showed an increase over the period.

The 1998 population includes 16 additional businesses (36 vs. 62).  A comparison of only those Canadian-owned commercial properties identified in both the 1996 and 1998 studies shows a 13% increase in total equalized assessed value.  The total equalized taxable value, however, declined by a similar margin and total property tax generated decreased by 12% over the period for these properties. 

 Methodological Notes:  The above data was generated from multiple sources.  First, the Real Property Tax Office (RPTO) provided a listing of all properties whose owners had Canadian addresses along with their assessment, location, etc.  The commercial properties on this list are mostly non-manufacturing and include warehouses and apartments owned by Canadians.  The second source is the Canadian-owned business list generated by the Chamber. Assessments and taxes due came either from the actual assessment rolls (county treasurer's office) or computer files provided by RPTO.

 In 1996, we determined assessments for 53 properties.  In 1998, data for 62 properties were tallied.  The remaining 70 enterprises on the 1998 Canadian-owned list either lease space (53) or could not be definitively identified (17).

 Recommendations for replication:  The procedures used here can be replicated without modification.

Total equalized assessed value of IBB properties increased by 8% from 1996 to 1998.  Total equalized taxable value increased by 186% over the same period.  Total property tax and PILOT payments generated from IBB property decreased by 49% from 1996 to 1998.  The municipal portion decreased by 79% while the school tax portion increased by 34% over the same period.

Methodological Notes:

 Fewer than 20% of the businesses on the list were positively identified in the tax rolls in the 1996 study.  By contacting local assessors directly in this round, we were able to increase the number of properties identified to 27 of 82 (33%). 

 In general, this category is considerably more volatile than the Canadian-owned businesses.  It is dominated by a few large enterprises in which a small change can greatly affect totals.  Furthermore, many of the included companies are small and operate out of a site that includes the owner's home.  There is no easy way to separate the value of the residence from the commercial value.   Finally, only a small proportion of the values for the total list provided is identifiable because many may be tenants or may own the businesses in some name other than that cited in the list. For these reasons the above data should be interpreted with caution.

Recommendations for replication: Replication should be straightforward.

The difference between 1996 and 1998 is attributable to minor changes in the equalization rates for the towns with public agency property. 

Recommendations for replication: Replication should be straightforward.