HomeMy WebLinkAboutFIN 18-18--C~lt1 of--/J , PlCKERlNG From: Stan Karwowski Director, Finance & Treasurer Report to Executive Committee Report Number: FIN 18-18 Date: September 11, 2018 Subject: Section 357/358 of the Municipal Act-Adjustment to Taxes Recommendation: 1. That the write-off of taxes as provided for in Attachment 1 , in accordance with sections 357 and 358 of the Municipal Act, 2001 be approved; and 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: Not Applicable Financial Implications: If approved, the write-off of taxes referred to in Attachment 1 of this report represents a gross cost of $5,041.77 with a net cost to the City of approximately $1,271.06, 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 2018 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, a reduction of taxes due to fire, demolition, exemption, assessment change, or error is allowed. A change in realty tax class can translate into lower property taxes if a property is moved from industrial to commercial tax class or commercial to residential tax class. Demolltions and other physical changes to a property, such as filling in a swimming pool, or damage caused by fire or flooding, may result in reductions in assessment and corresponding reductions in property taxes. · Section 358 of the Municipal Act allows taxpayers to have their taxes revised if they have been overcharged due to a gross or manifest clerical error. On this basis, taxpayers are allowed to seek reduction of their taxes 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 MPAC. Application # 12/18 makes up roughly 35 per cent of the adjustment value on this report. The house was destroyed by fire and therefore, the property taxes only for the house have to be adjusted.
Report FIN 18-18. Subject: Section 357 /358 of the Municipal Act-Adjustment to Taxes September 11, 2018 Page 2 Four of the applications on Attachment 1 reflect the reason "razed by fire or demolition". Two houses were destroyed by fire. One house was demolished so that a new house can be built. One pool was filled in. One of the applications reflects the reason "Ceases to be liable for tax at rate it was taxed". A home based business moved to a new commercial building on Kingston Road. This application is to change the commercial property taxes to residential now that the property is used solely as a home. The purpose of sections 357 and 358 is to allow the municipality to rectify assessment and classification changes that are otherwise unable to be changed. Attachments: 1. Section 357/358 Adjustment to Taxes Mike Jones Supervisor, Taxation Recommended for the consideration of Pickering City Council 6P~ Tony Prevedel, P.Eng. Chief Administrative Officer Approved/Endorsed By: Stan Karwowski Director, Finance & Treasurer ~ . t.1, 7.0/B
Attachment 1
App# Roll Number Reason
12 /18 010.018.13897 Razed by fire, demoliton or otherwise
13 /18 010.038.09401 Razed by fire, demoliton or otherwise
14 /18 020.016.30689 Razed by fire, demoliton or otherwise
15 /18 020.023.11400 Razed by fire, demoliton or otherwise
16 /18 010.018.12180 Ceases to be liable for tax at rate it was taxed
City of Pickering
Section 357/358 Adjustment to Taxes
September 11, 2018
Comments Year
Structure destroyed by fire 2018
Structure demolished 2018
Structure destroyed by fire 2018
Pool filled in 2018
No longer commercial 2018
City Region
531.72 965.92
315.40 572.96
230.38 418.51
36.49 66.28
157.07 285.33
1 271.06 2,309.00
Education
259.00
153.63
112.22
17.77
919.09
1 461.71
Total
1,756.64
1,041.99
761.11
120.54
1 361.49
5 041.77
Type of
Application
357
357
357
357
357