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HomeMy WebLinkAboutFIN 14-13From: Paul Bigioni Director, Corporate Services & City Solicitor Report to Executive Committee Report Number: FIN 14 -13 Date: June 10, 2013 Subject: Section 357/358 of the Municipal Act —Adjustment to Taxes Recommendation: That Report FIN 14 -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 $90,961.29, with a net cost to the City of approximately $24,975.24, 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 $286,359.00, and $152,218.74 (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. Five of the properties referred to in Attachment 1 reflecting the comment "Ceased to be liable for tax at rate it was taxed" have had their assessment class revised to a class with a lower tax rate. Report FIN 14 -13 June 10, 2013 Page 2 Section 358 of the Municipal Act, allows the taxpayer 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 seek reassessment of the current year, plus two prior years in which the application is made. 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 go through the formal assessment review process. Attachments: 1. Section 357/358 Adjustment to Taxes - Taxable Prepared By: Approved /Endorsed By: Donna elong Stan Karw ki, IV! MA Supervisor, Ta a on (Acting) D visi Head, Finance & Paul Bigioni Director, Cor or to S rvices & City Solicitor SK:dd Recommended for the consideration of Pickering City Council 21, Zo/3 Tony Prevedel, P.Eng. Chief Administrative Officer C U a 0 T U N a) X (0 H O C E Q Lo n Li c 0 N M CD N m wo C R � n Lo m m Lo Lo Lo � n Lo Lo Lo n UD � U n Q in u) (n (n )n )n (n (n (n (n (n (n (n m M M M M M M M M M M M M M M M M M M M Q Q M ^O OcH O V� O� N O O O? 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T O O O E E E O O T O O a a a a aai a a D o `o o o aai 0 a ai 0 a m m m N m N N N N m m O O O y y y y N N N N m N N N N N m N N N m m m m m m m m m a) m m m m d a) m m MN m m m MN d() () U U U C7 C7 C7 U U a' U U Of Q co co cl) Q O V V O O O O O co co tO (0 co CD co 1- O O tO ATTACHMENT #-J--TO REPORT # I ' l3