HomeMy WebLinkAboutFIN 08-18DICKERING
6,),/
Report to
Executive Committee
Report Number: FIN 08-18
Date: May 7, 2018
From: Stan 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
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 $26,829.28 with a net cost to the City of approximately
$6,302.97, 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. 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.
Application # 29/17 makes up roughly 37% of the adjustment value on this report. This application
is for changing the tax class from industrial to commercial. The property is mainly used for storage
and no longer qualifies for the industrial tax rate.
Report FIN 08-18 May 7, 2018
Subject: Section 357/358 of the Municipal Act — Adjustment to Taxes Page 2
Application # 11/18 makes up roughly 10% of the adjustment value on this report. This application
is for removing the assessment for a commercial building that was demolished in late 2016.
Ten of the applications on Attachment 1 reflect the comment "Razed by demolition". Some of
these applications are for the same property for more than one property tax year. In total there
were five homes and one commercial building demolished. These properties are located
throughout the city. All of these buildings were demolished to accommodate future development,
most of which are already underway. For two of the applications there is no adjustment because
the change was already reflected on the 2018 assessment roll.
Six of the applications on Attachment 1 reflect the comment "Ceases to be liable for tax at rate it
was taxed". These applications are for properties that were assessed as one tax class but were
eligible for a different tax class for part of the year or the entire year.
One of these applications is for "Gross or manifest clerical error". This application did not qualify
so there is no adjustment.
One of these applications is for "Damaged or substantially unusable". This application did not
qualify so there is no adjustment.
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:
Mike Jones
Supervisor, Taxation
Approved/Endorsed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
Attachment 1
App # Roll Number
12 /17 020.017.40351
26 /17 030.004.18200
29 /17 020.022.01901
31 /17 020.022.05739
32 /17 020.022.05740
33 /17 030.020.10600
34 /17 030.020.10600
36 /17 010.029.11700
37 /17 010.029.11700
01 /18 010.040.05100
02 /18 010.040.05100
04 /18 030.007.15000
05 /18 030.007.15000
06 /18 030.002.17600
07 /18 030.009.15200
08 /18 030.002.10100
10 /18 010.038.11300
11 /18 020.017.29500
Reason
Gross or manifest clerical error
Ceases to be liable for tax at rate it was taxed
Ceases to be liable for tax at rate it was taxed
Ceases to be liable for tax at rate it was taxed
Ceases to be liable for tax at rate it was taxed
Razed by demolition
Razed by demolition
Razed by demolition
Razed by demolition
Razed by demolition
Razed by demolition
Razed by demolition
Razed by demolition
Razed by demolition
Ceases to be liable for tax at rate it was taxed
Ceases to be liable for tax at rate it was taxed
Damaged or substantially unusable
Razed by demolition
City of Pickering
Section 357/358 Adjustment to Taxes
May 7, 2018
Comments
DNQ; issue resolved with apportionment
No longer commercial
No longer industrial
No longer industrial
No longer industrial
No recommendation; already adjusted by MPAC
No recommendation; already adjusted by MPAC
Structure Demolished
Structure Demolished
Structure Demolished
Structure Demolished
Structure Demolished
Structure Demolished
Structure Demolished
Approved; taxable to PIL. No tax change.
Approved; taxable to PIL. No tax change.
House required repair; DNQ for adjustment
Structure Demolished
Year City Region Education Total Type of
Application
2017 - - - - 358
2017 (96.93) (177.28) 1,897.60 1,623.39 357
2017 2,454.99 4,490.03 3,064.60 10,009.62 357
2017 436.14 797.67 450.62 1,684.43 357
2017 394.67 721.83 391.17 1,507.67 357
2017 - - - 357
2018 - - - 357
2017 45.13 82.53 22.18 149.84 357
2018 202.66 368.14 98.71 669.51 357
2017 164.53 300.91 80.88 546.32 357
2018 431.69 784.19 210.27 1,426.15 357
2017 66.73 122.04 32.80 221.57 357
2018 773.10 1,404.39 376.57 2,554.06 357
2018 383.84 697.27 186.97 1,268.08 357
2018 - - - 357
2018 - - 357
2017 - - - 357
2017 1,046.42 1,913.84 2,208.38 5,168.64 357
6,302.97 11,505.56 9,020.75 26,829.28
# 1N3Wr-HDV!
SI -AO NTN # 1L'Qd3 101