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HomeMy WebLinkAboutCS 08-11 Report To Executive Committee Pi EKING Report Number: CS 08-11 Date: January 10, 2011 184 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2011 Interim Levy and Interim Tax Instalment Due Dates Recommendation: 1. That Report CS 08-11 of the Director, Corporate Services & Treasurer be received; 2. That an interim levy be adopted for 2011 for all of the realty property classes; 3. That the interim levy tax instalment due dates be February 25 and April 28, 2011; 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 year's annualized taxes. The tax levy raises funds that are used for the continuing operations of the City, Region and the School Boards. These due dates are relatively unchanged from prior years. Financial Implications: Adoption of the recommendations and passing the By-law will allow staff of the Corporate Services Department to bill the 2011 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, 2011). Report CS 08-11 January 10, 2011 Subject: 2011 Interim Levy and Interim Tax Instalment Due Dates Page 2 1 Q ~ - Sustainability Implications: Council authority is required in order to raise property tax revenue prior to approving 2011 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 2011 Current Budgets. Background: In accordance with the Municipal Act, 2001, as amended, the City issues Interim tax bills based on the previous year's annualized taxes. The recent Province-wide re-assessment 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 will be reflected on the 2011 Final tax bill, which has two instalment dates. 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 2011 interim levy would be based on the adjusted annualized 2010 taxes. However, for those taxpayers that utilize the City's Pre-authorized Payment Plan (PAP), they will have the benefit of spreading any potential tax increase due to re-assessment over the five instalments that occur after the budgets of the City of Pickering have been passed and after the Province sets the 2011 (final) education tax rates. The City currently has approximately 7,200 ratepayers using the PAP 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 re-assessment to the same extent as a taxpayer who pays their taxes on the four regular instalment due dates. Changes to the Billing 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 2011 Interim Instalment Due Dates Report CS 08-11 January 10, 2011 Subject: 2011 Interim Levy and Interim Tax Instalment Due Dates Page 3 186 Prepared By: Approved / Endorsed By: Stan Karwowski Gillis A. Paterson Manager, Finance & Taxation Director, Corporate Services & Treasurer GAP:sk Copy: Chief Administrative Officer Recommended for the consideration of Pickering 'ty Coun it Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT #TO REPORT # =1l 187 The Corporation of the City of Pickering By-law No. Being a by-law for the collection of taxes and to establish the instalment due dates for the Interim Levy 2011. 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 2010. 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 2010. 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 2010. 2. For the purposes of calculating the total amount of taxes for the year 2011 under paragraph one, the Director, Corporate Services & 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 2010 because assessment was added to the collector's roll during 2010, 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 provisions of this By-law apply in the event that assessment is added for the year 2010 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. Page 2 4. Taxes shall be payable to the Treasurer, City of Pickering. 188 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. 0. 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 2011 taxes, one notice being an INTERIM notice, with two instalments under the provisions of Section 342 of the Municipal Act 2001, S. 0. 2001, c.25 as amended, as follows: Interim Tax Notice - Due date of the first instalment February 25, 20111 - Due date of the second instalment April 28; 2011; 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 ByA w No. Page 3 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.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.O. 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 1st day of January, 2011. By-law read a first, second and third time and finally passed this 17th day of January, 2011. David Ryan, Mayor Debbie Shields, Clerk