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From
Subject:
Stan Karwowski
Director, Finance & Treasurer
Report to
Executive Committee
Report Number: FIN 09-17
Date: May 8, 2017
Section 357/358 of the Municipal Act- Adjustment to Taxes
Recommendation:
That the write-off of taxes as provided for in Attachment 1, in accordance with Sections
357/358 of the Municipal Act, 2001 be approved; and
2. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
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 $592.03 with a net cost to the City of approximately $175.99, 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 2017 Current Budget allocation under General Government —
Provision for Uncollectable Taxes.
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 a 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.
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 applications in Attachment 1 reflects the comment "Raised by Demolition," and was
filed to remove the value of basement upgrades that had been removed.
Report FIN 09-17
May 8; 2017
Subject: Section 357/358 of the Municipal Act — Adjustment to Taxes Page 2
• Two of the applications in Attachment 1 reflect the comment "Ceases to be liable for tax at rate it
was taxed," as the properties were transferred to the City and are now exempt from taxation.
The purpose of Sections 357 and 358 is to allow the municip�lity 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 357/358 Adjustment to Taxes - Taxable
Prepared By:
Donna DeLon
Supervisor, Taxation
SK:dd
Recommended for the consideration
of Pickey'rh�City Council
�1�t � �1� o cJ'�i E��f c�f
Tony Preve eP, ng.
Chief Admini trat' e Officer
CORP0227-07/01 revised
Approved/Endorsed By:
�.__-----
Stan Karwowski
Director, Finance & Treasurer
City of Pickering
Section 357/358 Adjustment to Taxes
May 8, 2017
App # Reason for Adjustment Details Year City Region Education Total Type of
� . Application
82 /16 Razed by demolition Basement finish was removed by owner 2016 7.58 13.98 . 3.76 25.32 357
83 /16 Gross or manifest clerical error by MPAC No recommendation; not a gross or manifest clerical error 2015 - - - - 358
84 /16 Gross or manifest clerical error by MPAC No recommendation; not a gross or manifest clerical error 2014 - - - - 358
01 /17 Ceases to be liable for tax at rate it was taxed Portion transferred to City; should be exempt 2016 8.78 16.19 4.35 29.32 357
02 /17 Ceases to be liable for tax at rate it was taxed Portion transferred to City; should be exempt 2016 74.74 137.86 37.07 249.67 357
03 /17 Gross or manifest clerical error by MPAC Basement size incorrect 2014 18.75 36.19 10.15 65.09 358
04 /17 Gross or manifest clerical error by MPAC Basement size incorrect 2015 28.24 53.15 14.63 96.02 358
05 /17 Gross or manifest clerical error by MPAC Basement size incorrect 2016 37.90 69.91 18.80 126.61 357
06 /17 Gross or manifest clerical error by MPAC No recommendation; not a gross or manifest clerical error 2015 - - - - 358
07 /17 Gross or manifest clerical error by MPAC No recommendation; not a gross or manifest clerical error 2016 - - - - 357
175.99
0
327.28 88.76 592.03