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HomeMy WebLinkAboutFIN 23-14 cif/°� = ' Report to Executive Committee PI KERING Report Number: FIN 23-14 • Date: December 8, 2014 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Section 354/357/358 of the Municipal Act—Adjustment to Taxes • Recommendation: 1. That Report FIN 23-14 of the Director, Corporate Services & City Solicitor be received; 2. That the write-off of taxes as provided for under Section 354/357/358 of the Municipal Act, 2001 be approved; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Executive Summary: Not Applicable Financial.Implications: If approved, the write-off of taxes as referred to in Attachment 1 of this report represents a gross cost of$81,676.37 with a net cost to the City of approximately $17,260.36, the balance being charged back to the Region of Durham and the School Boards. Pickering's share of the costs will be charged to the 2014 Current Budget allocation under General Government— Provision for Uncollectable Taxes. Discussion: The Municipal Act provides the Treasurer with various tax tools regarding the administration and collection of property taxes. Under the provisions of Section 357 of the Municipal Act, reduction of taxes due to fire, demolition, exemption, • assessment change or error is allowed. Change in realty tax class can translate into lower property taxes if the property is moved from industrial to commercial tax class or commercial to residential tax class. Demolitions and other physical changes to a property, such as filling in a swimming pool, or damage caused by fire or flooding, result in a reduction in assessment and a corresponding reduction in property taxes. Six of the applications in Attachment 1 reflect the comment"razed by fire, demolition." Six applications were to remove older structures, and five of the applications were for properties that qualified for a tax reduction. 105 Report FIN 23-14 December 8, 2014 Subject: Section 354/357/358 of the Municipal Act—Adjustment to Taxes Page 2 Four of the applications reflect the comment"ceases to be liable for tax rate at rate it was taxed". Two of the applications were for properties that had their assessment class revised to a class with a lower tax rate. Two of the applications were to exempt properties from taxation as they are owned by the City. Section 358 of the Municipal Act allows taxpayers to have their assessments revised by MPAC where they believe that they have been overcharged due to a gross or manifest clerical error on the part of MPAC. On this basis, taxpayers are allowed to seek reduction of their assessments for the current year as well as the two prior years. This section of the Act allows for the reduction of taxes due to such errors, once confirmed by the Regional Assessment Office of MPAC. Six of the applications in Attachment 1 reflect the comment "gross or manifest error". These properties had no reduction as they were determined by MPAC to be appropriately assessed. The purpose of Sections 357/358 is to allow the municipality and MPAC to quickly rectify assessment classification changes, and prior years' errors quickly without the property owner having to go through the formal assessment review process. Section 354 of the Municipal Act allows the council of the local municipality to write off taxes as uncollectible on the recommendation of the Treasurer. The taxes associated with the applications in Attachment 1 reflecting the comment"Treasurer's Write Off", have been deemed by the Treasurer as uncollectible. The applications for"Treasurer's Write Off" all relate to one property. That property is a very small residual parcel created by Plan 40M-1442 in 2000, with a residential assessment value of$10,000. In 2008, the parcel was subject to a consolidation and land division, and the roll number was deleted by MPAC. Considering that the roll no longer exists and the arrears were outstanding prior to the consolidation, it would be difficult to pursue collection of the arrears. The City's portion for all years of outstanding taxes for this property is $288.96. Attachments: 1. Section 354357/358 Adjustment to Taxes - Taxable 106 Report FIN 23-14 December 8, 2014 Subject: Section 354/357/358 of the Municipal Act—Adjustment to Taxes Page 3 Prepared By: Approved/ Endorsed By: 10* i ' ;I Donn. bet... g ,` Stan Karwowski Supervisor, Taxation D. ion Head, Finance &Treasurer k.;:,. 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