HomeMy WebLinkAboutCS 61-07
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 61-07
Date: December 10, 2007
From:
Gillis A. Paterson
Director, Corporate SeNices & Treasurer
Subject:
2008 Interim Levy and Interim Tax Instalment Due Dates
Recommendation:
1. That Report CS 61-07 of the Director, Corporate SeNices & Treasurer be
received;
2. That an interim levy be adopted for 2008 for all of the realty property classes;
3. That the interim levy tax instalment due dates be February 28 and April 28,
2008;
4. That 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. That the attached draft by-law, providing for the imposition of the taxes, be
enacted; and,
6. That 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 2008 interim levy would be based on the adjusted
annualized 2007 taxes.
The tax levy raises funds that are used for the continuing operations of the City,
Region and the School Boards.
Report CS 61-07 December 10, 2007
Subject: 2008 Interim Levy and Interim Tax Instalment Due Dates Page 2
1 03
Financial Implications: Adoption of the recommendations and passing the By-law
will allow staff of the Corporate Services Department to bill the 2008 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 31,2008)
Sustainability Implications: Council authority is required in order to raise property tax
revenue, prior to approving 2008 budgets and setting tax rates for the City. This
revenue will allow each of the bodies (City, Region and School Board) to meet
expenditures and maintain financial sustainability pending approval of the respective
2008 Current Budgets.
Background: In accordance with the legislation mentioned above, the City issues
Interim tax bills based on the previous year's annualized taxes.
The planned annual assessment update of all properties in Ontario has been cancelled
and all properties continue to have a valuation date of January 1, 2005. In other words,
the assessment values used to calculate the 2007 property taxes will be used for the
2008 property taxes. Assessment notices were mailed in November 2007 to property
owners whose assessment information has changed since the last assessment update,
in accordance with Provincial Legislation.
Chanqes to the Billinq Schedule
Recommendation 4, will allow the Director, 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 2008 Interim Instalment Due Dates
Report CS 61-07 December 10, 2007
Subject: 2008 Interim Levy and Interim Tax Instalment Due Dates Page 3
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Prepared By:
Approved I Endorsed By:
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Stan Karwowski
Manager, Finance & Taxation
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Gillis A. Paterson
Director, Corporate Services & Treasurer
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Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
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THE CORPORATION OF THE CITY OF PICKERING
105
BY-LAW NO. xxxx/07
Being a by-law for the collection of taxes and to establish the
instalment due dates for the Interim levy 2008.
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 2007.
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 2007.
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 2007.
2. For the purposes of calculating the total amount of taxes for the year 2008 under
paragraph one, if any taxes for municipal and school purposes were levied on a
property for only part of 2007 because assessment was added to the collector's roll
during 2007, 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
2008 to the collector's roll after the date this By-law is passed and an interim levy
shall be imposed and collected.
By-law No.
106
4. Taxes shall be payable to the Treasurer, City of Pickering.
Page 2
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 2008 taxes, one notice being an INTERIM notice, with two
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 28, 2008
- Due date of the second instalment April 28, 2008; 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, R.S.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 instalment 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.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.
10. 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.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
By-law No.
Page 2
unpaid on the first day after twenty-one days from the date of mailing by the 1 0 7
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 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.
13. 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.
14. That this By-law is to come into effect on the 1 st day of January, 2008.
BY-LAW read a first, second and third time and finally passed this 17th day of
December, 2007.
David Ryan, Mayor
Debi Wilcox, City Clerk