HomeMy WebLinkAboutFIN 23-17E
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PICKERING
Report to
Executive Committee
Report Number: FIN 23-17
Date: December 4, 2017
From: Start Karwowski
Director, Finance & Treasurer
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
357/358 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 as referred to in Attachment 1 of this
report represents a gross cost of $23,378.35 with a net cost to the City of approximately
$5,823.72, 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 2017 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. 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.
Section 358 of the Municipal Act allows taxpayers to have their assessments 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 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 MPAC.
Report FIN 23-17 December 4, 2017
Subject: Section 357/358 of the Municipal Act — Adjustment to Taxes Page 2
Applications # 27/17 and 28/17 make up roughly 60% of the adjustment value on this report.
These two applications are for a City owned property that is becoming exempt from taxation.
Seven of the adjustments on Attachment 1 reflect the comment "Razed by demolition". Houses
were demolished, and the adjustments are to remove the value of the structures from the
corresponding assessments.
Three of the applications on Attachment 1 reflect the comment "Ceases to be liable for tax at rate
it was taxed". These three properties contained some commercial operations in the past, but
those uses have ceased. A lower tax rate is being applied for part of the year to reflect this
change in use.
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 - Taxable
Prepared By:
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Mike Jones
Supervisor, Taxation
Approved/Endorsed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering y Council
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Tony Prevedel, P.Eng.
Chief Administrative Officer
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App #
Reason for Adjustment Details
City of Pickering
Section 3571358 Adjustment to Taxes
December 11, 2017
Year City Region Education Total Type of
Application
30 117 Razed by demolition Structure Demolished 2017 145.60 266,29 71.58 483.47 357
01 /16 Ceases to be liable for tax at rate it was taxed Owned by City; should be exempt 2008 181.86 369.27 491.29 1,042.43 357
27 /17 Ceases to be liable for tax at rate it was taxed Owned by City; should be exempt 2016 1,301.16 2,400.12 1,991.26 5.692.54 357
28 /17 Ceases to be liable for fax at rate it was taxed Owned by City; should be exempt 2017 2,092.40 3,826.88 3,258.53 9,177.81 357
16 /17 Razed by demolition Structure Demolished 2017 672.81 1,230.53 330.76 2,234.11 357
11 /17 Razed by demolition Structure Demolished 2017 377.72 690.82 • 185.69 1,254.23 357
21 /17 Razed by demolition Structure Demolished 2017 267.17 488.63 131.34 887.14 357
22 117 Razed by demolition Structure Demolished 2017 336.84 616.05 165.59 1,118.48 357
24 117 Razed by demolition Structure Demolished 2017 314.80 575.75 154.76 1,045.31 357
23 /17 Razed by demolition Structure Demolished 2017 133.36 243.91 65.56 442.83 357
5,823.72 10,708.25 6,846.36 23,378.35