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HomeMy WebLinkAboutFIN 21-15 City o1 Report to ' Executive Committee PI KERING Report Number: FIN 21-15 Date: September 14, 2015 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Section 357/358 of the Municipal Act—Adjustment to Taxes Recommendation: 1. That Report FIN 21-15 of the Director, Corporate Services & City Solicitor be received; 2. That the write-off of taxes as provided for under Sections 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$15,309.79 with a net cost to the City of approximately $4,218.02, 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 2015 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 Report FIN 21-15 September 14, 2015 Subject: Section 357/358 of the Municipal Act—Adjustment to Taxes Page 2 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. Seven of the applications in Attachment 1 reflect the comment "razed by fire, demolition." Two applications reflect the comment "ceases to be liable for tax rate at rate it was taxed"; these applications will see a reduction in tax due to a change in use. 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. There are three applications in this report that apply to this section where MPAC incorrectly assessed the property with an inground pool. The purpose of Sections 357 and 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. Attachments: 1. Section 357/358 Adjustment to Taxes - Taxable Prepared By: Approved / Endorsed By: ULP#CfY Karen Uphoff Stan a owski (Acting) Supervisor, Taxation Divis on ead, Finance & Treasurer • Paul : gi• i Direct•r, •rpo -te Services & City Solicitor Report FIN 21-15 . September 14, 2015 Subject: Section 357/358 of the Municipal Act—Adjustment to Taxes Page 3 Recommended for the consideration of Pickering City Council . /, � 2.1/ 20 Tony Prevedel, P.Eng. Chief Administrative Officer • ATTACHMENT# I TO REPORT#, FIN r l r- r N. N. n r n N. N. r CO to to to tO to N LO to N LO N N to to LO N C C) C) 0') C) C) M N C) C) C) N C) C) 01 w O O d N O.•S'2 Fa c N CO CO to N O r co to M N ta)r N O C) 7 CO. O t0 CO N N y, ? 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