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HomeMy WebLinkAboutCS 01-04 82 Ciú/ 0# REPORT TO FINANCE & OPERATIONS COMMITTEE Report Number: CS 01-04 Date: January 9, 2004 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2004 Interim Levy and Interim Installment Due Dates Recommendation: 1. It is recommended that Report CS 01-04 of the Director, Corporate Services & Treasurer be received; 2. An interim levy be adopted for 2004 for all of the realty property classes; 3. The interim levy installment due dates be February 26 and April 29, 2004; 4. The Director, Corporate Services & Treasurer be authorized to make any changes or undertake any actions necessary, including altering due dates, in order to ensure the tax billing process is completed; 5. The attached by-law, providing for the imposition of the taxes, be read three times and passed by Council; and, 6. The appropriate City of Pickering officials be authorized to take the necessary actions to give effect thereto. Executive Summary: Each year, prior to the adoption of the estimates for the year, Council authorizes the adoption of an interim levy. Under Provincial legislation, the interim levy can be no more than 50% of the previous years annualized taxes. In other words, if a property experienced an assessment increase, due to an additional supplementary or omitted assessment, or a decrease in assessment due to an appeal, demolition or class change, the 2004 interim levy would be based on the adjusted annualized 2003 taxes. This requires much more detailed assessment, taxation and billing analysis for 2004 and each year thereafter. The tax levy raises funds that are used for the continuing operations of the City, Region and the School Boards. Report CS 01-04 Date: January 9,2004 83 Subject: 2004 Interim Levy and Interim Installment Due Dates Page 2 Financial Implications: Adoption of the recommendations and passing the by-law will allow staff of the Corporate Services Department to bill the 2004 interim levy to all properties. Passing of the by-law will assist the City of Pickering to meet its financial obligations and reduce any borrowing costs. (The first school board payment is due on March 31, 2004) Background: In accordance with the legislation mentioned above, the City issues interim tax bills based on the previous year's annualized taxes. The recent Province- wide re-assessment however, is NOT taken into consideration when calculating the interim taxes payable. For those property owners whose assessment increases or decreases, the impact of the assessment change is postponed to the 2004 final tax bill. Property owners who receive substantial assessment increases lose the benefit of spreading the potential tax increases over four payments. However, for those taxpayers that utilize the City's Pre-authorized Payment Plan (PAP), they will have the benefit of spreading the assessment increases over the five installments that occur after the budgets of the City of Pickering have been passed and after the Province sets the education tax rates. (The City currently has approximately 4,800 rate payers using the PAP program.) Chanqes to the Billinq Schedule Recommendation 4, will allow the Director of Corporate Services & Treasurer some latitude, limited by Provincial legislation, in effecting whatever may be necessary in order to ensure that the taxes are billed properly and in a timely fashion. It was always staff's understanding that Recommendation 4 would be used to change the due dates by a few days in order to meet Provincial legislation requirements. (Section 343, subsection one of the Municipal Act states the property owner must have at least twenty-one days to pay their taxes.) A report would be prepared to Council if there was a substantial delay in the billing of the interim taxes. Attachments: 1. By-law to establish the 2004 Interim Installment Due Dates 84 Report CS 01-04 Date: January 9, 2004 Subject: 2004 Interim Levy and Interim Installment Due Dates Page 3 Prepared By: Approved I Endorsed By: ~ " )~lAL ~ / Susan Aitke ead Coordinator, Taxation Services ~~---- ,--¿~ ...s--"- Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachment Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council .-.> .-{ 85 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-law for the collection of taxes and to establish the installment due dates for the Interim Levy 2004. WHEREAS Section 317, of the Municipal Act, 2001, S.0.2001, 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% of the total taxes for municipal and school purposes levied in the year 2003. 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% of the total taxes for municipal and school purposes levied in the year 2003. c. For the payment-in-lieu property classes, there shall be imposed and collected an interim levy of: If no percentage is prescribed, 50% of the total taxes for municipal and where applicable for school purposes, in the year 2003. 2. For the purposes of calculating the total amount of taxes for the year 2004 under paragraph one, if any taxes for municipal and school purposes were levied on a property for only part of 2003 because assessment was added to the collector's roll during 2003, 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. 3. The provision of this by-law apply in the event that assessment is added for the year 2004 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 installment thereof, may also be made at any financial institution permitted by Section 346 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. 86 i. 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 2004 taxes, one notice being an INTERIM notice, with two installments under the provisions of Section 342 of the Municipal Act 2001, S.D. 2001, c.25 as amended, as follows: INTERIM Tax Notice - Due date of the first installment February 26, 2004 - Due date of the second installment April 29, 2004; or either date adjusted by the Director, Corporate Services & Treasurer. 9. Except in the case of taxes payable in respect of assessments made under Sections 33 and 34 of the Assessment Act, RS.O. 1990, c.A31 , as amended, the late payment charge of one and one-quarter percent 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 installment or part 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.D. 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 installments 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.D. c.25 as amended. 10. In the case of taxes payable in respect of assessments made under Sections 33 and 34 of the Assessment Act, RS.O. 1990, c.A.31 , as amended, the late payment charge of one and one-quarter percent for non payment of taxes and monies payable as taxes shall be added as a penalty to every tax so payable remaining unpaid on the first day after twenty-one days from the date 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.D. c.25 as amended. It shall be the duty of the Treasurer immediately after the expiration of the said twenty-one days to collect at once by distress or otherwise under the provisions of the applicable statutes, all such taxes as shall not have been paid on or before the expiration of the said twenty-one day period, together with the said percentage charges as they are incurred pursuant to sections 349, 350 and 351 of the Municipal Act 2001, S.D. c.25 as amended. 11. Nothing herein contained shall prevent the Treasurer from proceeding at any time with the collection of any rate, tax or assessment, or any part thereof, in accordance with the provisions of the statutes and by-laws governing the collection of taxes. 12. Where tenants of land owned by the Crown or in which the Crown has an interest are liable for the payment of taxes and where any such tenant has been employed either within or outside the municipality by the same employer for not less than thirty days, such employer shall pay over to the Treasurer on demand out of any wages, salary or other remuneration 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 for the amount so paid. 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 Council for the Corporation of the City of Pickering that all remaining sections and portions of this By-law continue in force and effect. 13. I I, 'i I' :1 Ii !i II II Ii II Ii II 'I 'I 'I II 14. That this by-jaw is to come into effect on the 1st day of January, 2004. BY-LAW read a first, second and third time and finally passed this 2nd day of February, 2004. David Ryan, Mayor Bruce Taylor, Clerk 87 :1 il 'i :; ¡: p II i! Ii II I' II II II Ii Ii I I , I II I i II II I