HomeMy WebLinkAboutFIN 01-14 r,tr 00 _ Report to
j _ Executive Committee
t' G Report Number: FIN 01-14
Date: January 20, 2014
From: Paul Bigioni
Director, Corporate Services & City Solicitor
•
Subject: 2014 Interim Levy and Interim Tax Instalment Due Dates
Recommendation:
1. That Report FIN 01-14 of the Director, Corporate Services & City Solicitor
be received;
2. That an interim property tax levy be adopted for all realty property classes
for 2014;
3. That the interim property tax levy tax instalment due dates be February 27
and April 29, 2014;
4. That the attached draft by-law, providing for the imposition of the taxes, be
enacted; and,
5. That the appropriate City of Pickering officials be authorized to take the
necessary actions to give effect hereto.
Executive Summary: Each year, prior to the adoption of the estimates for the year,
Council authorizes the adoption of an interim property tax levy. Under Provincial
legislation, the interim levy can be no more than 50% of the previous year's annualized
taxes.
The tax levy raises funds that are used for the continuing operations of the City, Region
and the School Boards.
These due dates are relatively unchanged from prior years.
Financial Implications: Adoption of the recommendations and passing the By-law
will allow staff of the Corporate Services Department to bill the 2014 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, 2014).
76
Report FIN 01-14 January 20, 2014
Subject: 2014 Interim Levy and Interim Tax Instalment Due Dates Page 2
Discussion: In accordance with the Municipal Act, 2001, as amended, the City
issues Interim property tax bills based on the previous year's annualized taxes.
A Province-wide re-assessment 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 2014 Final tax
bill, which has two instalment dates. If a property experienced an assessment increase
in 2013 due to an additional supplementary or omitted assessment, or a decrease in
assessment due to an appeal, demolition or class change, the 2014 interim levy would
be based on the adjusted annualized 2013 taxes. Those taxpayers that utilize the City's
Pre-authorized Payment Plan (PAP) will have the benefit of spreading any potential tax
increase due to re-assessment over the five instalments that occur after the City's budget
has been passed and after the Province sets the 2014 (final) education tax rates. The
City currently has approximately 8,700 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 experience the impact of re-assessment to the same extent as a
taxpayer who pays their taxes on the four regular instalment due dates.
Attachments:
1. By-law to Establish the 2014 Interim Instalment Due Dates
Prepared By: Approved / Endorsed By:
i -i
/ f#
Donna Delon. Stan Karwowski
Division Head ' ance & Treasurer
Supervisor, /xation
\_
Paul Bigioni
Director, Corpo ate Se \ices & City Solicitor
Recommended for the consideration
of Pickering City Couit
0, , i � ,- 15, 20/3
Tony Prevedel, P.Eng.
Chief Administrative Officer
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 2014.
Whereas Section 317, of the Municipal Act, 2001, S.O.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 2013.
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 2013.
c. For the payment-in-lieu 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 where applicable for school purposes, in the year 2013.
2. For the purposes of calculating the total amount of taxes for the year 2014 under
paragraph one, the Treasurer has the authority to prescribe the percentage for the
calculation of the interim taxes and if any taxes for municipal and school purposes
were levied on a property for only part of 2013 because assessment was added to
the collector's roll during 2013, 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 2013 to the collector's roll after the date this By-law is passed and an interim
levy shall be imposed and collected.
78
By-law No. Page 2
4. Taxes shall be payable to the Treasurer, City of Pickering.
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 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.
8. The Treasurer is hereby authorized to prepare and give one separate tax notice for
the collection of 2014 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, 2014
Due date of the second instalment April 29, 2014; or either date
adjusted by the Division Head, Finance &Treasurer.
9. Except in the case of taxes payable in respect of assessments made under Sections
33 and 34 of the Assessment Act, R.S.O. 1990, c.A31, as amended, the late
payment charge of one and one-quarter percent for non-payment of taxes and
monies payable as taxes shall be added as a penalty to every tax or assessment,
rent or rate of any instalment or part thereof remaining unpaid on the first day of
default and on the first day of each calendar month thereafter in which such default
continues pursuant to subsections 345 (1), (2) and (3) of the Municipal Act 2001,
S.O. c.25 as amended. The Treasurer shall collect by distress or otherwise under
the provisions of the applicable statutes all such taxes, assessments, rents, rates or
instalments or parts thereof as shall not have been paid on or before the several
dates named as aforesaid, together with the said percentage charges as they are
incurred pursuant to sections 349, 350 and 351 of the Municipal Act 2001, S.O.
c.25 as amended.
10. In the case of taxes payable in respect of assessments made under Sections 33 and
34 of the Assessment Act, R.S.O. 1990, c.A.31, as amended, the late payment
charge of one and one-quarter percent for non payment of taxes and monies
payable as taxes shall be added as a penalty to every tax so payable remaining
79
By-law No. Page 3
unpaid on the first day after twenty-one days from the date of mailing by the
Treasurer of a demand for payment thereof and on the first day of each calendar
month thereafter in which default continues pursuant to subsections 345 (1), (2) and
(3) of the Municipal Act 2001, S.O. c.25 as amended. It shall be the duty of the
Treasurer immediately after the expiration of the said twenty-one days to collect at
once by distress or otherwise under the provisions of the applicable statutes, all
such taxes as shall not have been paid on or before the expiration of the said
twenty-one day period, together with the said percentage charges as they are
incurred pursuant to sections 349, 350 and 351 of the Municipal Act 2001, S.O.
c.25 as amended.
11. 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.
12. Where tenants of land owned by the Crown or in which the Crown has an interest
are liable for the payment of taxes and where any such tenant has been employed
either within or outside the municipality by the same employer for not less than thirty
days, such employer shall pay over to the Treasurer on demand out of any wages,
salary or other remuneration due to such employee, the amount then payable for
taxes under this By-law and such payment shall relieve the employer from any
liability to the employee for the amount so paid.
13. 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.
14. That this By-law is to come into effect on the 1st day of January, 2014.
By-law passed this 27th day of January, 2014.
David Ryan, Mayor
Debbie Shields, Clerk
80