HomeMy WebLinkAboutFIN 04-13
e`t'' Report To
Executive Committee
PI KERING Report Number: FIN 04-13
Date: March 4, 2013
From: Paul Bigioni
Director, Corporate Services & City Solicitor
Subject: Section 357/358 of the Municipal Act- Adjustment to Taxes
Recommendation: 1. That Report FIN 04-13 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 $3,044.57, with a net cost to the
City of approximately $756.12, 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
2013 Current Budget allocation under General Government - Provision for
Uncollectable Taxes. The 2013 budget provision is anticipated to be $286,359.00, and
$1,072.23 (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 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.
Two of the properties referred to in Attachment 1 reflect the comment "Ceased to be
liable for tax at rate it was taxed". These properties have had their assessment class .
revised to a class with a lower tax rate.
Report FIN 04-13 . Date: March 4, 2013
Subject: Section 357/358 of the Municipal Act - Adjustment to Taxes Page 2
Section 358 of the Municipal Act, allows taxpayers to have their assessments revised by
MPAC where they believe that they have been overcharged due to a gross or manifest
clerical error on the part of MPAC. On this basis, taxpayers are allowed to seek
reduction of their assessments for the current year as well as 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.
One of the properties referred to in Attachment 1 reflects the comment "Gross or
Manifest Clerical Error (by MPAC)." This property was assessed with incorrect acreage
information, 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 having
the property owner having to go through the formal assessmenf review process.
Attachments:
1. Section 357/358 Adjustment to Taxes - Taxable
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Prepared By: Approved / Endorsed By:
Donna DeLong Stan Karwowski
Supervisor, Ta tion (Acting)Divisio e d, Finance & Treasurer
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Paul Bigioni
Director, Corporat S rvic & City Solictor
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Recommended for the cons' ration of '
Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
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