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HomeMy WebLinkAboutFIN 27-18DICKERING Report to Council Report Number: FIN 27-18 Date: December 10, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Delegation of Authority for Certain Adjustments to the Property Taxes Recommendation: 1. That Report 27-18 of the Director, Finance & Treasurer regarding the delegation of authority for certain adjustments to property taxes be approved; 2. That the authority for tax matters under section 356, 357, 358, and 359 of the Municipal Act (the Act) be delegated to the Director, Finance & Treasurer; and 3. That the draft by-law attached to this report be enacted; and 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: This by-law is to give the Director, Finance & Treasurer the authority to process routine adjustments to property taxes in specific situations. Financial Implications: These tax adjustments are included in the yearly budget under the provision for reduction in taxes. There will be no significant financial change between the current and proposed proceedures. Discussion: Every year the Municipal Property Assessment Corporation produces assessments for all properties. The taxes are calculated using those assessments. On occasion an event happens after the assessments have been created and the taxes need to be adjusted (i.e. a demolition or a fire). Any owner may apply within certain time limits to have the property taxes adjusted for specific reasons that are detailed in the Act. Report FIN 27-18 December 10, 2018 Subject: Delegation of Authority for Certain Adjustments to the Property Taxes Page 2 All adjustments under these sections will be created by a Tax Analyst, reviewed by the Supervisor, Taxation, and approved by the Director, Finance & Treasurer. For decisions made under sections 356, 357, and 359, applicants have the opportunity to appeal the decision to the Assessment Review Board if they disagree with the outcome. For decisions made under section 358, the decision is final. There is no recourse to appeal. Under the current procedures some customers can wait many months for their adjustment to be processed as we wait for an appropriate Council meeting. If approved, this delegation of authority will speed up the process allowing the City to better serve our residents and property owners. Attachments: 1. By-law to Delegate Authority to Staff for Certain Routine Tax Matters 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 Va' 31 2° !8 ATTACHMENT # TO REPORT # r114 The Corporation of the City of Pickering By-law No. /18 Being a by-law to delegate authority to staff for certain routine tax matters. Whereas section 23.1(1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, authorizes a municipality to delegate its powers and duties subject to certain restrictions; and Whereas the Council of The Corporation of the City of Pickering has deemed that certain routine administrative and legislative powers are of a minor nature, and the delegation of these powers would contribute to the efficient management of the City while still adhering to the principles of accountability and transparency. Now therefore, the Council of the Corporation of the City of Pickering hereby enacts as follows: 1. The following powers and duties are hereby delegated to the Director, Finance & Treasurer or his or her designate: a. the apportionment of taxes for a block of land divided into two or more parcels for taxation purposes (section 356 of the Municipal Act) b. the cancellation, reduction or refund of all or part of taxes levied on land in the year in respect of which an application is made if, i. as a result of a change event during the taxation year, the property or portion of the property is eligible to be reclassified in a different class of real property, and that class has a lower tax ratio for the taxation year than the class the property or portion of the property was in before the change event, and no supplementary assessment is made in respect of the change event under subsection 34 (2) of the Assessment Act; ii. the land has become vacant land or excess land during the year or during the preceding year after the return of the assessment roll for the preceding year; iii. the land has become exempt from taxation during the year or during the preceding year after the return of the assessment roll for the preceding year; iv. during the year or during the preceding year after the return of the assessment roll, a building on the land, (a) was razed by fire, demolition or otherwise, or (b) was damaged by fire, demolition or otherwise so as to render it substantially unusable for the purposes for which it was used immediately prior to the damage; v. a mobile unit on the land was removed during the year or during the preceding year after the return of the assessment roll for the preceding year; By-law No. Page 2 vi. a person was overcharged due to a gross or manifest error that is clerical or factual in nature; or vii. repairs or renovations to the land prevented the normal use of the land for a period of at least three months during the year (section 357 of the Municipal Act). c. the cancellation, reduction or refund of all or part of the taxes levied on land in one or both of the two years preceding the year in which an application is made for any overcharge caused by a gross or manifest error in the preparation of the assessment roll that in the opinion of the Manager, Tax & Assessment is clerical or factual in nature (section 358 of the Municipal Act) d. increase the taxes levied on land in the year in respect of which an application is made to the extent of any undercharge caused by a gross or manifest error that in the opinion of the Manager, Tax & Assessment is a clerical or factual error (section 359 of the Municipal Act) 2. In addition to granting the Director, Finance & Treasurer this authority, City Council will retain the authority to approve tax adjustments under these sections. 3. 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 City Council that all remaining sections and portions of this by-law continue in full force and effect. 4. That this by-law is to come into effect on the 1st day of January, 2019. By-law passed this 10th day of December, 2018. David Ryan, Mayor Debbie Shields, Clerk