Talk:Municipal Tax Increase by Extraordinary Amount (LTB)

Case Study Example

• L5 Filing Date: December 1, 2021
• First intended rent increase date: March 1, 2022
• Base Year Claimed by LL: 2020
• Reference Year Claimed by LL: 2019
• Prior AGI Order creates accounting period of January 1, 2021, to December 31, 2021
• Guideline Rent Increase (2020): 2.2%
• Guideline Rent Increase (2019): 1.8%

Because the application was filed on December 1, 2021, the base year is 2020 because the last completed calendar year immediately preceding the day that is 90 days before the effective date of the first intended rent increase referred to in the application is 2020. The reference year is 2019 because 2019 is the 12-month period immediately preceding the base year.

Calculations

• 21 (1): 0.966
• 28 (2): 3.3%
• 29 (2) 1: 162,321.67 * 1.033 = 167,678.28 ^{Reference Year: 2019, sections 3, and 4 do not apply to our facts}
• 29 (2) 5: 182,680.35 - 167,678.28 = 15,002.07 ^{2020 Base Year - Adjusted 2019 Reference Year}
• 29 (2) 6: 14,491.99 ^{Results of paragraph 5 multiplied by results of section 21 (1)}

Unit Calculation

• 31 1: (14,491.99 + 0) / (86,379.63 * 12) = 1.811 ^{The 12 is the 12-month period for which the rent is being collected}
  • 31 1: 14,491.99 / 1,073,139.84 = 0.013504
• 31 2: N/A
• 31 3: 1.35
• 31 4: 1.35 ^{The only operating costs are the municipal taxes}
• 31 5: 1.35 ^{Does not apply as only operating costs are the municipal taxes are considered in our situation}

Section A

• Costs (2019)(Reference Year): 162,321.67
• Costs (2020)(Base Year): 182,680.35
• Costs affected all 88 Rental Units
• Adjustments under 29 (2) 1: 2.2 * 1.5 = 3.3%
• Calculations 29 (2) 5: 20,358.68
• Calculations 21 (1): 0.966
• Calculations 29 (2) 6: 20,689,101.37
• Did the municipal taxes and charges for a tax year increase as a result of an appeal of a tax assessment?
• Tax increase claimed by LL between 2019 to 2020: 12.54%

Section D

• Operating Cost Categories
  • Municipal Taxes and Charges
    • Column 1: See Attached RUI
    • Column 2: $86,433.63
    • Column 3: $89,379.63

Prior AGI Order

1. The Landlord may increase the rents charged by 1.31% for the units set out in Schedule 1.

2. The percentage increase set out in paragraph 1 is to be taken within the time period of March 1, 2020 to December 31, 2020.

3. The portion of the Landlord’s application seeking an above-guideline rent increase due to an extraordinary increase in municipal taxes and charges to take effect during the period January 1, 2021 to March 31, 2021, is dismissed.

4. The percentage increase set out in paragraph 1 may be taken in addition to the annual guideline in effect on the increase date for the unit.