Tax Ratios express the relationship that the tax rate for each property class in the municipality bears to the tax rate for the residential property class. Thus, tax ratios determine the relative tax burdens for each property class.
Tax Ratios will be set annually by upper tier and single tier municipalities. The tax ratios set by an upper tier will govern all the tax rates within each municipality in the upper tier. However, there are limits to municipal powers to set tax ratios; they must adhere to transition ratios and tax ratio ranges of fairness.