Parcel taxes are local government taxes charged based on the parcel itself, rather than the assessed value of the property. This means parcel taxes are separate from property taxes which are calculated using the assessed value of your home or land.
A parcel tax may be charged based on:
- a flat rate per parcel (unit)
- the size (area) of the parcel
- the linear frontage of the parcel
A parcel is a defined piece of land, such as a registered lot or folio listed on the property assessment roll.
For example, a residential lot and the home located on it are typically considered one parcel
Parcel taxes are generally used to help pay for the capital costs of specific local services and infrastructure, such as water, sewer, or drainage systems. The are often charged alongside a user fee.
For example:
- the parcel tax helps cover fixed infrastructure costs, such as building and maintaining water lines
- the user fee covers ongoing operating costs, such as water usage charges or meter fees
Parcel taxes cannot be used to recover general administration costs.