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
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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.
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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
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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.;:,. L'oni
Di -cto c•rporate Services & City Solicitor
Recommended for the consideration of
Pickerin City Council
/adejal
dc.41-: .21, Lo/
-Tony Prevedel, P.Eng. •
Chief Administrative Officer .
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