HomeMy WebLinkAboutCST 32-12 cis Report To
Executive Committee
PICKERING Report Number: CST 32-12
Date: December 3, 2012
From: Paul Bigioni
Director, Corporate Services & City Solicitor
Subject: Section 357/358 of the Municipal Act—Adjustment to Taxes
Recommendation:
1. That Report CST 32-12 of the Director, Corporate Services & City Solicitor be
received;
2. That the write-offs of taxes as provided under Section 357/358 of the Municipal
Act, 2001 be approved; and,
3. That 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 referred to in
Attachment 1 of this report, represents a gross cost of $215,650.14 with a net cost to
the City of approximately $43,787.52, the balance being charged back to the Region of
Durham and the School Boards. Pickering's share of the costs will be charged to the
2012 Current Budget allocation under General Government — Provision for
Uncollectable Taxes. The 2012 budget provision is $276,310.00, and $297,404.90
(including the above) has been spent to date.
Discussion: The Municipal Act provides the Treasurer with various tax tools
regarding the administration and collection of property taxes. Under the provisions of
Section 357 of the Municipal Act, reduction of taxes due to fire, demolition, exemption,
assessment change or error is allowed. Change in realty tax class can translate into
lower property taxes if the property went from industrial to commercial tax class or
commercial to residential tax class. Demolitions, and other physical changes to a
property, such as removing or filling in a swimming pool, or damage caused by fire or
flooding, result in a reduction in assessment and a corresponding reduction in property
taxes.
Six of the properties referred to in Attachment 1 reflect the comment "Should
be/became Exempt." These properties were formerly assessable, but are now exempt
from taxation. Two of these properties were purchased by religious organizations, and
four were purchased by the Ministry of Transportation.
Report CST 32-12 Date: December 3, 2012
Subject: Section 357/358 of the Municipal Act-Adjustment to Taxes Page 2
Section 358 of the Municipal Act, allows taxpayers to have their assessment revised by
MPAC where they believe that they have been overcharged due to a gross or manifest
clerical error on the part of MPAC. They are allowed to have their property taxes
adjusted for the current year plus the two prior years. This section of the Act allows for
the reduction of taxes due to such errors, once confirmed by the Regional Assessment
Office of MPAC.
Two of the properties referred to in Attachment 1 reflect the comment "Gross or
Manifest Clerical Error (MPAC)." These properties were incorrectly assessed with 85%
finished basements, and this report will adjust the related accounting transactions to
reflect the correct assessments for all eligible years.
The purpose of Sections 357/358 is to allow the municipality and MPAC to quickly
rectify assessment classification changes, and prior year's errors quickly without the
property owner having to go through the formal assessment review process.
Attachments:
1. Section 357/358 Adjustment to Taxes - Taxable
Prepared By: Approved / Endorsed By:
D nn DeLong Stan Karwowski
o a e g
Supervisor, Taxation (Acting) Divisi• I-ad, Finance & Treasurer
Paul Bigioni
Director, Corpor.•- - ices & City Solicitor
SK:dd
Recommended for the consideration of
Pickering Cit Council
/ Woo-. 24 2.0/4
Tony Prevedel, P.Eng.
Chief Administrative Officer
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