HomeMy WebLinkAboutFIN 04-15 City 00 Report to
' Executive Committee
PICKERING
Report Number: FIN 04-15
Date: March 2, 2015
From: Paul Bigioni
Director, Corporate Services & City Solicitor
Subject Section 357/358 of the Municipal Act—Adjustment to Taxes
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Recommendation:
1. That Report FIN 04-15 of the Director, Corporate Services & City Solicitor be
received;
2. That the write-off of taxes as provided for under Sections 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$42,014.16 with a net cost to the
City of approximately $9,509.88, 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
2015 Current Budget allocation under General Government— Provision for
Uncollectable Taxes. The 2015 budget provision for uncollectable taxes is anticipated
to be $858,500.00, and $13,155.81 (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 Aranslate into
lower property taxes if the property is moved 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.
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Report FIN 04-15 March 2, 2015
Subject: Section 354/357/358 of the Municipal Act—Adjustment to Taxes Page 2
Three of the applications in Attachment 1 reflect the comment"razed by fire,
demolition." One application reflects the comment "ceases to be liable for tax rate at
rate it was taxed". This property had the assessment class revised to a class with a
lower tax rate. Two of the applications were to exempt properties from taxation as they
are owned by the City (one of which was previously occupied by Durham Region
Transit).
Section 358 of the Municipal Act allows taxpayers to have their assessments revised by
MPAC when 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 application in Attachment 1 reflects the comment "gross or manifest error". It has
been determined that MPAC did not make an error and therefore this property does not
qualify for a reduction for the prior tax year.
The purpose of Sections 357 and 358 is to allow the municipality and MPAC to quickly
rectify assessment classification changes, and prior years' errors quickly without the
property owner having to go through the formal assessment review process.
Attachments:
1. Section 354/357/358 Adjustment to Taxes- Taxable
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Prepared By: Approved / Endorsed By:
. Karen Uphoff Stan Karwowski
(Acting) Supervisor, Taxation Division Head, Finance &Treasurer
Paul :1•''•-'
Dire tor, Corp•rate Services & City Solicitor
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Report FIN 04-15 March 2, 2015
Subject: Section 354/357/358 of the Municipal Act—Adjustment to Taxes Page 3
Recommended for,the consideration
of Pickering Ci ouncil
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,7:20/,
Tony Prevedel,,P.Eng.
Chief Administrative Officer
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