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HomeMy WebLinkAboutCS 66-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 66-05 Date: August 31, 2005 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 66-05 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 $4,594.55 with a net cost to the City of approximately $928.04, 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 2005 Current Budget allocation under General Government - Provision for Uncollectable Taxes. (This account reflects property tax reductions mainly due to Minutes of Settlement, Assessment Review Board Decisions and Council approved Section 357/358 reductions.) The 2005 budget provision is $173,163 and $85,871.11 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. Three properties on the attached document are for properties owned by the Federal Government (Public Works Canada.) The assessment class change from taxable to Report CS 66-05 Subject: Section 357~358 of the Municipal Act - Adjustment to Taxes August 31,2005 Page 2 payment-in-lieu have no change in dollar value. The only effect in property taxes for the Public Works properties are the cost is shared only between the City and the Region. The Federal Government properties are classifed as a "Payment-in-lieu-of Taxes" or (PIL) propedies 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. Attachment: 1. Section 357/358 Adjustment to Taxes Prepared By: T--rac~-15a rso.~s- _ _ Tax Analyst GAP:tp Attachment Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council Thd"rr~s ,~. OuCh, ((::;~ief A~ Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer Z m I11 I--u~ Zo UJ o Z m ::~ Z o Z LU 00. b o