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HomeMy WebLinkAboutFIN 01-16Call 00 PICKERING Report to Executive Committee Report Number: FIN 01 -16 Date: January 11, 2016 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: 2016 Interim Levy and Interim Tax Instalment Due Dates Recommendation: 1. That an interim property tax levy be adopted for all realty property classes for 2016; 2. That the interim property tax levy tax instalment due dates be February 25 and April 25, 2016; That the attached draft by -law, providing for the imposition of the taxes, be enacted; and 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: Each year, prior to the adoption of the estimates for the year, Council authorizes the adoption of a by -law that establishes an interim tax levy to all property classes, payment due dates, and penalty and interest charges. 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: This is an annual report which is procedural in nature. Enacting a by -law that establishes an interim tax levy to all properties will permit the City to meet its financial obligations and reduce borrowing costs until such time as the 2016 Budget and 2016 Final Tax Levy By -laws are approved by Council. (The first instalments payable to the School Boards and Region are due on March 31, 2016). 32 Report FIN 01 -16 January 11, 2016 Subject: 2016 Interim Levy and Interim Tax Instalment Due Dates Page 2 Discussion: In accordance with the Municipal Act, 2001, as amended, the City issues Interim property tax bills based on the previous year's annualized taxes. A 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 2016 Final tax bill, which has two instalment dates. If a property experienced an assessment increase in 2015 due to an additional supplementary or omitted assessment, or a decrease in assessment due to an appeal, demolition or class change, the 2016 interim levy would be based on the adjusted annualized 2015 taxes. Those taxpayers that utilize the City's Pre - authorized Tax Payment Plan (PTP) will have the benefit of spreading any potential tax increase due to re- assessment over the six instalments that occur after the City's budget has been passed and after the Province sets the 2016 (final) education tax rates. The City currently has approximately 8,800 ratepayers using the monthly PTP 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. Property owned by a religious organization is exempt from property taxes if the property meets the conditions under subsection 3.1. (3) of the Assessment Act. One of the key criteria is that the property be "actively used" in the context of holding religious services. There are situations where a religious organization purchases a property and the property does not become immediately exempt due to the need to have extensive renovations before church services can be held. The large majority of religious organizations believe that they are exempt from property taxes and when they receive a property tax bill, they are surprised and may have financial challenges resulting in late payment charges. Section 11 of the attached By -law provides the Treasurer the authority to adjust and or cancel late payment charges for those religious organizations that have incurred late payment charges mainly due to construction timing issues. Attachments: 1. By -law to Establish the 2016 Interim Instalment Due Dates Prepared By: Approved /Endorsed By: Donna DeLong Supervisor, Taxation Sta rwowski DiviHead, Finance & Treasurer Paul Direc rate Services & City Solicitor 33 Report FIN 01 -16 January 11, 2016 Subject: 2016 Interim Levy and Interim Tax Instalment Due Dates Page 3 Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 34 ATTACHMENT #V TO REPORT #11_1,01- 1( 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 2016. Whereas Section 317, of the Municipal Act, 2001, S.O.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 annualized taxes for municipal and school purposes levied in the year 2015. 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 annualized taxes for municipal and school purposes levied in the year 2015. 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 annualized taxes for municipal and where applicable for school purposes, in the year 2015. 2. For the purposes of calculating the total amount of taxes for the year 2016 under paragraph one, the 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 2015 because assessment was added to the collector's roll during 2015, 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 2015 to the collector's roll after the date this By -law is passed and an interim levy shall be imposed and collected. 35 By -law No. Page 2 4. Taxes shall be payable to the Treasurer, City of Pickering. 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.O. 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. 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 2016 taxes, one notice being an INTERIM notice, with two instalments under the provisions of Section 342 of the Municipal Act 2001, S.O. 2001, c.25 as amended, as follows: Interim Tax Notice - Due date of the first instalment February 25, 2016 - Due date of the second instalment April 25, 2016; or either date adjusted by the Division Head, Finance & Treasurer. Section 8 of this by -law in respect to the due dates does not apply to those taxpayers who participate in the City's monthly Pre - authorized Tax Payment plan (PTP). Monthly PTP interim due dates are the 1St 8th and 16th day of each month. 10. 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. 36 By -law No. Page 3 11. The Treasurer is hereby granted authority to adjust and or cancel late payment charges for property owned by religious organizations and the Treasurer is hereby authorized to write -off the late payment charges for roll number 1801 010 038 21600 in the amount of $11,771.11. 12. 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 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. 13. 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. 14. 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. 15. 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. 16. That this By -law is to come into effect on the 1st day of January, 2016. By -law passed this 18th day of January, 2016. David Ryan, Mayor Debbie Shields, Clerk 37