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Home My WebLink AboutCS 57-08 REPORT TO EXECUTIVE COMMITTEE Report Number: CS 57-08 Date: December 8,2008 '1 69 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2009 Interim Levy & Tax Due Dates Recommendation: 1. That Report CS 57-08 of the Director, Corporate Services & Treasurer be received; 2. That an interim levy be adopted for 2009 for all of the realty property classes; 3. That the interim levy tax instalment due dates be February 27 and April 28, 2009; 4. That the Director, Corporate Services & Treasurer be authorized to make any changes or undertake any actions necessary, including altering due dates, in order to ensure the tax billing process is completed; 5. That the attached draft by-law, providing for the imposition of the taxes, be enacted; and, 6. That the appropriate City of Pickering officials be authorized to take the necessary actions to give effect thereto. Executive Summary: Each year, prior to the adoption of the estimates for the year, Council authorizes the adoption of an interim levy. Under Provincial legislation, the interim levy can be no more than 50% of the previous year's annualized taxes. In other words, if a property experienced an assessment increase, due to an additional supplementary or omitted assessment, or a decrease in assessment due to an appeal, demolition or class change, the 2009 interim levy would be based on the adjusted annualized 2008 taxes. The tax levy raises funds that are used for the continuing operations of the City, Region and the School Boards. Report CS 57-08 December 8, 2008 Subject: 2009 Interim Levy & Tax Due Dates Page 2 170 Financial Implications: Adoption of the recommendations and passing the By-law will allow staff of the Corporate Services Department to bill the 2009 interim levy to all properties. Passing of the By-law will assist the City of Pickering to meet its financial obligations and reduce any borrowing costs. (The first school board payment is due on March 31, 2009). Sustainability Implications: Council authority is required in order to raise property tax revenue, prior to approving 2009 budgets and setting tax rates for the City. This revenue will allow each of the bodies (City, Region and School Board) to meet expenditures and maintain financial sustainability pending approval of the respective 2009 Current Budgets. Background: In accordance with the legislation mentioned above, the City issues Interim tax bills based on the previous year's annualized taxes. The recent Province-wide re-assessment however, is not taken into consideration when calculating the interim taxes payable. For those property owners whose assessment increases or decreases, the impact of the assessment change will be reflected on the 2009 Final tax bill. Property owners who receive substantial assessment increases lose the benefit of spreading the potential tax increases over four payments. However, for those taxpayers that utilize the City's Pre-authorized Payment Plan (PAP), they will have the benefit of spreading any potential tax increase due to re-assessment over the five instalments that occur after the budgets of the City of Pickering have been passed and after the Province sets the 2009 (final) education tax rates. (The City currently has approximately 6,400 ratepayers using the PAP program.) Taxpayers who have taxes included with their mortgage payments pay their taxes over a 12-month period and also do not feel the impact of re-assessment to the same extent as a taxpayer who pays their taxes on the four regular instalment due dates. Chanqes to the Billinq Schedule Recommendation 4, will allow the Director, Corporate Services & Treasurer some latitude, limited by Provincial legislation, in effecting whatever may be necessary in order to ensure that the taxes are billed properly and in a timely fashion. It was always staff's understanding that Recommendation 4 would be used to change the due dates by a few days in order to meet Provincial legislation requirements. Section 343(1) of the Municipal Act, 2001 provides that the property owner must have at least twenty-one days from the date notice was sent to pay their taxes. A report would be prepared to Council if there was a substantial delay in the billing of the interim taxes. Report CS 57-08 December 8, 2008 Subject: 2009 Interim Levy & Tax Due Dates Page 3 '1 '7 1 Attachments: 1. By-law to establish the 2009 Interim Instalment Due Dates Prepared By: Approved I Endorsed By: ~lJ Acting Coordinator Taxation Services ~. ..~~~~~ /p"~~-~=--- Gillis A. Paterson Director, Corporate Services & Treasurer GAP:tp Copy: Chief Administrative Officer Recommended for the consideration of Pickering City u /r '172 ATTACHMENT#-L. TO REPORT#~S'1' Oi'" THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-law for the collection of taxes and to establish the instalment due dates for the Interim Levy 2009. WHEREAS Section 317, of the Municipal Act, 2001, S.0.2001, c.25, as amended, provides that the council of a local municipality may, before the adoption of the estimates for the year, pass a By-law levying amounts on the assessment of property, in the local municipality ratable for local municipality purposes; and WHEREAS, the Council of the Corporation of the City of Pickering deems it appropriate to provide for such an interim levy on the assessment of property in this municipality. NOW THEREFORE, THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. The amounts levied shall be as follows: a. For the residential, pipeline, farmland and managed forest property classes there shall be imposed and collected an interim levy of: If no percentage is prescribed, 50% of the total taxes for municipal and school purposes levied in the year 2008. b. For the multi-residential, commercial and industrial property classes there shall be imposed and collected an interim levy of: If no percentage is prescribed, 50% of the total taxes for municipal and school purposes levied in the year 2008. 2. For the purposes of calculating the total amount of taxes for the year 2008 under paragraph one, if any taxes for municipal and school purposes were levied on a property for only part of 2008 because assessment was added to the collector's roll during 2008, an amount shall be added equal to the additional taxes that would have been levied on the property if taxes for municipal and school purposes had been levied for the entire year. 3. The provisions of this By-law apply in the event that assessment is added for the year 2009 to the collector's roll after the date this By-law is passed and an interim levy shall be imposed and collected. 4. Taxes shall be payable to the Treasurer, City of Pickering. By-law No. Page 2 '1 '7 3 5. When not in default, the payment of taxes, or any instalment thereof, may also be made at any financial institution permitted by Subsection 346 (2) of the Municipal Act, 2001, S.o. 2001 c. 25, as amended. 6. The Treasurer may mail, or cause to be mailed, all notices of taxes required in accordance with the provisions of the Municipal Act, 2001, S.o. c. 25, as amended, to the address of the residence or place of business or to the premises in respect of which the taxes are payable unless the taxpayer directs the treasurer in writing to send the bill to another address, in which case it shall be sent to that address. Notices will not be mailed to tenants. It is the responsibility of the person taxed to notify and collect taxes from tenants or other persons. 7. The Treasurer is hereby authorized to prepare and give one separate tax notice for the collection of 2009 taxes, one notice being an INTERIM notice, with two instalments under the provisions of Section 342 of the Municipal Act 2001, S.o. 2001, c.25 as amended, as follows: INTERIM Tax Notice - Due date of the first instalment February 27, 2009 - Due date of the second instalment April 28, 2009; or either date adjusted by the Director, Corporate Services & Treasurer. 8. The Treasurer is hereby authorized to accept part payment from time to time on account of any taxes due, in accordance with the provisions of subsection 347 (1) and (2) of the Municipal Act 2001, S.O. c.25 as amended, and to give a receipt for such part payment under Section 346 (1) of the Municipal Act 2001, S.o. c.25, as amended. Council directs that, despite S. 347(2) of the Municipal Act 2001, all payments, including partial payments, shall be applied to accounts on a consistent basis. 9. Pen'alty: A percentage charge of 1 1,14 per cent of the amount of taxes due and unpaid shall be imposed as a penalty for the non-payment of taxes on the first day of default. Interest: Interest charges of 1 1,14 per cent, per month, of the amount of taxes due and unpaid shall be imposed for the non-payment of taxes and shall start to accrue on the first day of default. 10. Nothing herein contained shall prevent the Treasurer from proceeding at any time with the collection of any rate, tax or assessment, or any part thereof, in accordance with the provisions of the statutes and By-laws governing the collection of taxes. '1 7 4 By-law No. Page 3 11. If any section or portion of this By-law is found by a court of competent jurisdiction to be invalid, it is the intent of Council for the Corporation of the City of Pickering that all remaining sections and portions of this By-law continue in force and effect. 12. That this By-law is to come into effect on the 1 st day of January, 2009. BY-LAW read a first, second and third time and finally passed this 15th day of December, 2008. David Ryan, Mayor Debi Wilcox, City Clerk