HomeMy WebLinkAboutCS 51-04PICKERING
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 51-04
Date: November 8, 2004
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Section 357/358 of the Municipal Act- Adjustment to Taxes
Recommendation:
1. It is recommended that Report CS 51-04 of the Director, Corporate Services be
received; and that:
2. The write-offs of taxes as provided under Section 357 and 358 of the Municipal Act,
R.S.O. 2001, as amended, be approved; and,
3. The appropriate officials of the City of Pickering be authorized to take the necessary
action to give effect hereto.
Executive Summary: Not Applicable
Financial Implications: If approved, the write-off of taxes as contained in this report
represents a gross cost of $38,665.94 with a net cost to the City of approximately
$6,872.28, the balance being charged back to the Region of Durham and the School
Boards. (The education taxes for the Public Works Canada properties will be charged
to the City.) Pickering's share of the costs will be charged to the 2004 Current Budget
allocation under General Government Provision for Uncollectable Taxes (Account
2134). (This account is used to write-off City cost or share of property taxes due to
Minutes of Settlement, Assessment Review Board decisions and Council approved
Section 357/358 reductions.) The 2004 recommended budget provision is $173,163
and $101,576 including the above has been spent to date.
Background: The Municipal Act provides the Treasurer with various tax tools
regarding the administration and collection of property taxes. Section 357 of the
Municipal Act provides for the reduction of taxes due to fire, demolition, exemption,
assessment change or error and the tax reduction is applicable to the current year only.
Section 358 allows for the reduction of taxes due to assessment error and this section
can be applied to property taxes for the two preceding years.
Five properties on the attached document are for properties owned by the Federal
Government (Public Works Canada.) Assessment Class changes and removal of a
Report CS 51-04 Date: November 8, 2004
Subject: Section 357/358 of the Municipal Act - Adjustment to Taxes Page 2
mobile home have resulted in a reduction in property taxes. The reduction in property
taxes for the Public Works properties are cost shared only between the City and the
Region. The Federal Government properties are classifed as a "Payment-in-lieu-of
Taxes" or (PIL) properties and the municipality is able to retain the education portion of
the property taxes. Therefore, the City's share of the property tax write-off is higher for
PIL properties.
Property owned by the Menonist Church was incorrectly assessed as a PIL property
and should have been classified as exempt. Land and buildings owned by a church or
religious organization are exempt from taxation as per subsection 3 (1) 3 of the
Assessment Act. The assessment for roll number (030 011 16100) was changed from
industrial to residential which results in lower taxes due to the fact the residential tax
rate is less than the industrial rate.
Attachment:
1. Section 357/358 Adjustment to Taxes
Prepared By:
Approved / Endorsed By:
Trac~ P~s~ns v ~,.- .._.---
Tax An a~y,.~
GAP:tp
Attachment
Copy: Chief Administrative Officer
Recomme~
Picker~
~,~,Thomas J.~
Mn, Gh~f Administrative Officer
Gillis ~,. Paterson
Director, Corporate Services & Treasurer
~'-'3'TACHPIENT# / TO REPORT#~ 'o~
LLI
~Z
Z
Z
LM
0
i,
Z
o
~o~
E.E E E~ c c c c
0000
0~0~ ZZZZ
0
~=