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HomeMy WebLinkAboutFIN 01-25 Report to Council Report Number: FIN 01-25 Date: January 27, 2025 From: Stan Karwowski Director, Finance & Treasurer Subject: 2025 Interim Levy and Interim Tax Instalment Due Dates - File: F-4200-001 Recommendation: 1. That an interim property tax levy be adopted for all realty property classes for 2025; 2. That the interim property tax levy instalment due dates be February 25 and April 25, 2025; 3. That the attached draft by-law, providing for the imposition of the taxes, be enacted; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The purpose of this report is for Council to adopt a by-law that establishes an interim tax levy to all property classes, payment due dates, and penalty and interest charges. Under Provincial legislation, the interim levy can be no more than 50 per cent of the previous year’s annualized taxes. The interim tax levy raises funds that are used for the continuing operations of the City, Region and the school boards, until such time that Council approves the 2025 tax rates required to raise the levy as reflected in the Mayor’s 2025 Current Budget and to levy taxes for school boards and for the Region of Durham. The 2025 tax due dates are relatively unchanged from prior years. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Corporate Key to Deliver on Good Governance – Open & Transparency. Report FIN 01-25 January 27, 2025 Subject: 2025 Interim Levy and Interim Tax Instalment Due Dates Page 2 Discussion: The purpose of this report is for Council to adopt a by-law that establishes an interim tax levy to all property classes, payment due dates, and penalty and interest charges. Under Provincial legislation, the interim levy can be no more than 50 per cent of the previous year’s annualized taxes. In accordance with the Municipal Act, 2001, as amended, the City issues interim property tax bills based on the previous year’s annualized taxes, until such time that Council approves the 2025 tax rates required to raise the levy as reflected in the Mayor’s 2025 Current Budget and to levy taxes for school boards and for the Region of Durham. Those taxpayers that utilize the City’s Pre-authorized Tax Payment Plan (PTP) will have the benefit of spreading the 2025 tax increase over the 6 instalments that occur after the Mayor’s Budget was adopted and after the Province sets the 2025 (final) education tax rates. The City currently has approximately 13,000 taxpayers using the monthly PTP 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 an increase 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 2025 Interim Instalment Due Dates for All Realty Classes Prepared By: Approved/Endorsed By: Original Signed By Original Signed By Karen Uphoff James Halsall Supervisor, Taxation Division Head, Finance Original Signed By Stan Karwowski Director, Finance & Treasurer Report FIN 01-25 January 27, 2025 Subject: 2025 Interim Levy and Interim Tax Instalment Due Dates Page 3 Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer Attachment #1 to Report FIN 01-25 The Corporation of the City of Pickering By-law No. /25 Being a by-law for the collection of taxes and to establish the instalment due dates for the Interim Levy 2025 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 per cent of the total annualized taxes for municipal and school purposes levied in the year 2024. 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 per cent of the total annualized taxes for municipal and school purposes levied in the year 2024. c. For the payment-in-lieu property classes, there shall be imposed and collected an interim levy of: If no percentage is prescribed, 50 per cent of the total annualized taxes for municipal and where applicable for school purposes, levied in the year 2024. 2. For the purposes of calculating the total amount of taxes for the year 2025 under paragraph 1, 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 2024 because assessment was added to the collector’s roll during 2024, 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. By-law No. Page 2 3. The provisions of this by-law apply in the event that assessment is added for the year 2024 to the collector’s roll after the date this by-law is passed and an interim levy shall be imposed and collected. 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 2025 interim taxes, 1 notice being an interim notice, with 2 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 25, 2025 - Due date of the second instalment April 25, 2025; or either date adjusted by the Director, Finance & Treasurer. 9. Section 8 of this by-law in respect to the due dates does not apply to those taxpayers who participate in the City’s monthly Pre-authorized Tax Payment plan (PTP). Monthly PTP interim due dates are the 1st, 8th, and 16th day of each month. 10 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 1.25 per cent 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 By-law No. Page 3 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. 11.In the case of taxes payable in respect of assessments made under Sections 33 and 34of the Assessment Act, R.S.O. 1990, c.A.31, as amended, the late payment charge of1.25 per cent for non-payment of taxes and monies payable as taxes shall be added as apenalty to every tax so payable remaining unpaid on the first day after 21 days from thedate 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 ofthe Treasurer immediately after the expiration of the said 21 days to collect at once bydistress or otherwise under the provisions of the applicable statutes, all such taxes asshall not have been paid on or before the expiration of the said 21 day period, together with the said percentage charges as they are incurred pursuant to sections 349, 350 and351 of the Municipal Act, 2001, S.O. c.25, as amended. 12.Nothing herein contained shall prevent the Treasurer from proceeding at any time withthe collection of any rate, tax or assessment, or any part thereof, in accordance with theprovisions of the statutes and by-laws governing the collection of taxes. 13.Where tenants of land owned by the Crown or in which the Crown has an interest areliable for the payment of taxes and where any such tenant has been employed eitherwithin or outside the municipality by the same employer for not less than 30 days, suchemployer shall pay over to the Treasurer on demand out of any wages, salary or otherremuneration 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 forthe amount so paid. 14.If any section or portion of this by-law is found by a court of competent jurisdiction to beinvalid, 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. 15.That this by-law is to come into effect on the 27th day of January, 2025. By-law No. Page 4 By-law passed this 27th day of January 2025. ______________________________ Kevin Ashe, Mayor ______________________________ Susan Cassel Clerk